Experts:  M. G. Hains, M.J. Aitken, S. Ji

ASIC brought civil penalty proceedings against State One Stockbroking Ltd (State One) in the Federal Court of Australia for failing to comply with two ASIC Market Integrity Rules (ASX Market) 2010 (MIRs), following State One’s failure to comply with an infringement notice given to it by the Markets Disciplinary Panel(MDP). ASIC allegesd that State One made Bids on behalf of a client on 1 and 2 March 2011 in circumstances in which it ought reasonably have suspected that the client placed the relevant orders with the intention of creating a false or misleading appearance with respect to the market for, or price of, a stock; and failed, between 10 February and 9 May 2011, to provide clear guidance to its employees responsible for reviewing post-trade alerts on what to do in the event of receiving post-trade alerts.

Description: compliance breaches with respect to market manipulation; compliance oversight; false and misleading;