The Australian Securities & Investments Commission (ASIC) today said it had started proceedings in the Federal Court of Australia in Sydney against Whitebox Trading Pty Limited and its director and principal, Johannes Boshoff.
The proceedings relate to an investigation into the spike in the prices of securities comprised in the S&P/ASX 200 Index (Index Securities) on October 18, 2012 .
The Australian regulator alleges that it was likely artificial prices for trading Index Securities would be created by order activities of Mr Boshoff and Whitebox on October 18, 2012, as well as on four earlier dates in 2012.
ASIC also alleges that orders that Mr Boshoff and Whitebox had placed on the ASX but did not intend to trade created false or misleading appearances as to market for Index Securities.
Whitebox had been contracted to provide index arbitrage trading software and services to National Australia Bank Limited and the relevant order activities were conducted by Whitebox’s trading personnel while providing the services in questions.
ASIC is seeking declarations that Mr Boshoff and Whitebox violated provisions of the Corporations Act, as well as orders that they pay penalties and that they are restrained from providing financial services for a certain period.
You can view the full announcement from ASIC by clicking here.