3 traders charged over alleged spoofing, giving false information

Three men have been charged over "spoofing" in the Singapore derivatives market and providing false information to the Singapore Exchange (SGX).

Spoofing typically occurs when an errant trader submits fake orders, which are then rapidly cancelled to create a false impression of supply and demand in the market for a particular security.

The three are Jimmy Ng Kian Bin, 35, facing five counts; Erik Ng Song Hann, 48, with four charges; and Joseph Chai Ming Leong, 42, with two. All are Singaporeans from Joerik Financial, a proprietary trading firm and a trading member of SGX Derivatives Trading (SGX-DT).

The authorities allege that Jimmy Ng and Erik Ng entered and deleted a series of buy and sell orders, inducing other participants to enter the market. The prosecution also alleges that the trio falsely told the authorities that Jimmy Ng was testing a trading algorithm and Erik Ng was doing arbitrage trading.

Jimmy Ng faces four counts of defrauding market participants by simultaneously entering and deleting buy and sell orders for the SGX MSCI Singapore Index July 2015 Futures (SGN15) in July 2015. The fifth charge alleges that he conspired with Chai and Erik Ng to furnish a false statement to SGX-DT with regard to his trading in the SGN15.

Erik Ng faces two charges related to trades in the July 2016 and August 2016 contracts of the SGX MSCI Taiwan Index July 2016 Futures. The other charges relate to allegations of furnishing false information.

Chai's charges relate to giving false information to SGX-DT.

Spoofing typically occurs when an errant trader submits fake orders, which are then rapidly cancelled to create a false impression of supply and demand in the market for a particular security.

Jimmy Ng and Erik Ng are out on bail. Bail is not required for Chai, whose offences are non-arrestable.

A version of this article appeared in the print edition of The Straits Times on March 28, 2019, with the headline '3 traders charged over alleged spoofing, giving false information'. Print Edition | Subscribe