Blatant breach of the Corporations Act this AM! :(

[aaronphetamine]

Hey guys

So all the large companies on the ASX have a pre order for stock, valued in the tens of millions and this has pushed their pre open prices up way above where they should be.

This is clear market manipulation and its a breach of the CORPORATIONS ACT 2001 - SECT 1041A

A person must not take part in, or carry out (whether directly or indirectly and whether in this jurisdiction or elsewhere):

(a) a transaction that has or is likely to have; or

(b) 2 or more transactions that have or are likely to have;

the effect of:

(c) creating an artificial price for trading in financial products on a financial market operated in this jurisdiction; or
(d) maintaining at a level that is artificial (whether or not it was previously artificial) a price for trading in financial products on a financial market operated in this jurisdiction.

Note 1: Failure to comply with this section is an offence (see subsection 1311(1)).


WHY can this just happen like that ????

 

[Beej]

Re: Blatent Breach of Market Manip. Laws this morn..

But nothing has traded/transacted at that price as yet??

What do you think is going to happen when the market opens? Why is putting in large order pre-open manipulation exactly???

 

[aaronphetamine]

Re: Blatant Breach of Market Manip. Laws this morn..

Becuase its creating an artificial price for the stock quote of those companies.

I want peoples opinions, thats why im posting it here. Ive just finished a course in corp law and we touched on market manip. i just want to know if anything is ever done about it, or like most corporate laws, they are just there mainly as a scare tactic

 

[professor_frink]

Re: Blatant Breach of Market Manip. Laws this morn..

Futures expiry today.

 

[aaronphetamine]

Re: Blatant Breach of Market Manip. Laws this morn..

oh ok, thanks professor frink.

 

[professor_frink]

Re: Blatant Breach of Market Manip. Laws this morn..

oh ok, thanks professor frink.

No worries

You should see the indicative open prices settle down closer to the open