The FSB’s enforcement committee has fined a commodity futures trader, Robert Fourie, R2 million for contravening the Financial Markets Act by engaging in prohibited trading practices. The FSB’s directorate of market abuse referred Fourie to the committee after investigations revealed that he had artificially manipulated the price of the September 20, 2013 sunflower futures (Suns) contract. At the time, Fourie was a securities trader at Icap Securities South Africa. On certain days in June and July 2013, Fourie traded with himself in the Suns contract that resulted in no beneficial change of ownership in the contracts, the FSB says. These trades created the false impression that the contract was being actively traded, which, in turn, created an artificial price for the contract.
The enforcement committee took into account as an aggravating factor that Fourie, in his position as a dealer, was required to act as a “gatekeeper” and prevent entering trades on the exchange that were manipulative.
The order is available on the FSB website at www.fsb.co.za.