HK regulator orders two brokerages to freeze client accounts linked to suspected market manipulation

Maria Nikolova

Gary Cheng Securities Limited and Zhongcai Securities Limited have been prohibited from dealing with or processing certain assets held in five trading accounts.

Hong Kong’s Securities and Futures Commission (SFC) today announces that it has issued restriction notices to two brokerages – Gary Cheng Securities Limited (GCSL) and Zhongcai Securities Limited (ZSL).

The notices prohibit the brokerages from dealing with or processing certain assets held in five trading accounts, which are related to suspected market manipulation in late April 2020 in the shares of a company listed on the Stock Exchange of Hong Kong Limited.

The restriction notices prohibit them, without the SFC’s prior written consent, from disposing of or dealing with, or assisting, counselling or procuring another person to dispose of or deal with, any assets in any way in the trading accounts including:

  1. entering into transactions in respect of any securities; and/or

  2. processing any withdrawals or transfers of securities and/or cash or any transfers of money arising from the disposal of securities; and/or

  3. disposing of or dealing with any securities and/or cash on the instructions of any authorized person of the accounts or any person acting on their behalf.

The brokers are also required to notify the SFC if they receive any of these instructions.

The regulator says it considers that the issue of the restriction notices is desirable in the interest of the investing public and in the public interest. The SFC’s investigation into this matter is continuing.

Read this next

Metaverse Gaming NFT

Despite crypto winter, Fastex grabs $23.2 million in Fasttoken token sale

Fasttoken, part of the Fastex web3 ecosystem, has secured $23.2 million in financing through the private and public token sales of its native cryptocurrency Fasttoken (FTN).

Digital Assets

Iran to repay Russian debts in gold-backed stablecoins

A high-ranking member of the Russian parliament confirmed reports that his country was in talks with Iran to create a stablecoin for foreign trade settlements, to replace the dollar, ruble and Iranian rial.

Digital Assets

SEC denies Cathie Wood’s bitcoin ETF for second time

The approval of a regulated crypto derivative is still looking far less likely, as the US regulators have once again denied Cathie Wood’s application for a long-awaited spot bitcoin exchange-traded fund (ETF).

Executive Moves

Pavel Spirin promoted to Scope Markets CEO following Rostro acquisition

Belize-based FX and CFDs brokerage Scope Markets has promoted Pavel Spirin to take on an expanded role as the company’s chief executive officer. He replaces the outgoing CEO Jacob Plattner, who has also been a major shareholder since he resigned his position as managing director at GKFX.

Retail FX

Public.com goes all-in on alternative investing, launches Rare Sneaker Portfolio

“The concept of curated Portfolios means that our members will be able to invest in categories like art, trading cards, royalties, and real estate without needing to become subject matter experts on individual assets.”

Industry News

State Street taps AWS and Microsoft for cloud and infrastructure solutions

“By standardizing and simplifying our technology operating model, we will be able to more quickly deploy client environments and launch new products and services, while continuing to enhance the resiliency of our technology environment and our business operations.”

Institutional FX

Bitpanda launches Investment-as-a-Service business for banks, fintechs, online platforms

“Financial institutions today have to ask themselves how they aim to cater the increasing demand for modern investing solutions. Building these Individually, means a high startup cost, and products that are often outdated before they are even launched.”

Institutional FX

Options expands market data feeds after partnership with Tools for Brokers

“Our integration with ACTIV Financial marked the beginning of a new era in market data availability and infrastructure. Our teams have come together to provide unparalleled, fully managed market data services alongside Options’ global connectivity and infrastructure.”

Industry News

Recruitment in financial services sector buoyant despite planned mass layoffs

“It remains to be seen what impact this will have on hiring levels within the financial services arena this quarter”, said APSCo, regarding the expected mass layoffs within the financial services sector in England & Wales. 

<