ASIC seeks restraining orders against trading company and director
The Australian Securities and Investments Commission (ASIC) is seeking orders restraining a trading company and its principal from financial services over concerns of market manipulation.
In a notice of filing, ASIC alleged that Whitebox Trading Pty Ltd, and its sole director and principal, Johannes Boshoff, while contracted by the National Australia Bank Limited (NAB) to provide index arbitrage trading software in 2012, placed orders that contravened sections 1041A and 1041B of the Act by placing and cancelling orders for XJO Securities on the Australian Securities Exchange (ASX) on 19 April 2012 and placing and amending orders for XJO Securities on ASX on each of 17 May 2012, 19 July 2012, and 18 October 2012 that were likely to have the effect of creating artificial prices for trading XJO Securities on the ASX and had, or were likely to have, the effect of creating, or causing the creation of, a false or misleading appearance with respect to the market for XJO Securities on the ASX and were likely to have the effect of creating, or causing the creation of, a false or misleading appearance with respect to the price for trading XJO Securities on the ASX.
ASIC also alleged that false or misleading appearances as to market for Index Securities were created by orders that Boshoff and Whitebox had placed on the ASX but did not intend to trade.
ASIC has sought:
Declarations that Mr Boshoff and Whitebox contravened provisions of the Corporations Act
Orders that they pay penalties to the Commonwealth, and
That they be restrained from providing financial services for a defined period.
The regulator claimed that 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, including Boshoff, while providing those services.
On 23 December 2013, ASIC accepted an enforceable undertaking (EU) from NAB in relation to its responsibility for the alleged market misconduct of Whitebox's trading personnel.
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