Sydney futures body fines two associates

Press, 30 May 1987, Page 26

Sydney futures body fines two associates

By

Trish Croaker

of AAP (through NZPA) Sydney Fines of SAustl 0,000 ($NZ12,500) have been imposed against two Sydney Futures Exchange full associate members, and the trading rights of one have been suspended. The exchange yesterday said the rare action had been taken because of a number of breaches in its business rules and of the newly established Futures Industry Code.

Exact details of the charges were not disclosed, and the SFE also declined to say whether further charges would be laid against additional members.

One of those charged is Sydney-based Nizal Investments, which on Thursday was fined a maximum SAustIO.OOO. Its rights to trade on all markets were also suspended until further evidence was submitted by the broker to the SFE’s Committee for Inspection and Audit.

Perth futures trading

house Ausjap Pty, Ltd, operating out of West Australia, Brisbane and the Gold Coast, was also fined SAustIO.OOO. SFE spokesman, Mr Stephen Calder, said the disciplinary action was taken after an investigation by the exchange brought the breaches to light.

Mr Calder would not say whether further investigations were being conducted or if fresh charges would be laid. Associate members deal through exchange floor members, leading to speculation further action could be possible.

SFE chief executive, Mr Les Hosking, said the dealings of both brokers, who had the right to appeal, were largely on Japanese exchanges and they had little business on the SFE. There was also “absolutely no suggestion” that any incorrect dealings took place on the SFE at all.

“Nor is there any suggestion that any clients’ funds have been compromised,” he said.

Mr Hosking said the action further emphasised the role the SFE was prepared to take in its position as co-regulator assisting the Corporate Affairs Commissions and the National Companies and Securities Commission. “The SFE, the CACs and the NCSC now have the added backing of the Futures Industry Code to take action on breaches, and where necessary we are quite prepared to go to court to get the support we need to ensure compliance with our business rules,” he said. In a separate move, the SFE is to extend trading hours for its most successful contracts — 90-day bank bills and 10-year bonds.

As from Monday, trade in the contracts is to begin at 8.30 a.m. (10.30 NZ time) instead of 9 a.m. in response to demand from members and market users.

Earlier trading now being conducted in the physical bill and bond markets was responsible for this interest, according to the exchange.