TOKYO, Feb 18 (Reuters) - Japan’s Securities and Exchange Surveillance Commission has uncovered a stock manipulation scheme by traders from Anguilla-based company Select Vantage Inc.
The watchdog said it has recommended 60,000 yen ($590) in fines against the firm after discovering attempts to manipulate the price of shares in Torishima Pump Mfg Co and Hoshizaki Electric Co Ltd by placing large buy orders and cancelling them before they could be executed. The SESC said the stock manipulation took place in April, 2012.
Fines in Japan for financial regulatory violations are very low by global standards, although reputational damage can be a major concern for penalised institutions.
Select Vantage is a proprietary trading firm registered in the Caribbean island, doing day trading business in various countries, according to the SESC’s press release. Company officials were not immediately available for comment.
$1 = 101.9050 Japanese yen Reporting by Taiga Uranaka; Editing by Jacqueline Wong