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  • MAM-3.9 MAM-3.9 Prohibited Conduct — Futures Contract and Leveraged Foreign Exchange Trading

    • False Trading — Futures Contracts and Leveraged Foreign Exchange Trading

      • MAM-3.9.1

        Without prejudice to section MAM-3.1, no person shall create, or do anything that is intended or likely to create, a false or misleading appearance of active trading in any futures contract on a futures market or in connection with leveraged foreign exchange trading, or a false or misleading appearance with respect to the market for, or the prices of futures contracts on a futures market or foreign exchange, in connection with leveraged foreign exchange trading.

        November 2010

    • Bucketing

      • MAM-3.9.2

        Without prejudice to section MAM-3.1 no person shall:

        (a) Knowingly execute, or hold himself out as having executed, an order for the purchase or sale of a futures contract on a futures market, without having effected a bona fide purchase or sale of the futures contract in accordance with the business rules, practices and procedures of the licensed exchange;
        (b) Knowingly execute, or hold himself out as having executed, an order to make a purchase or sale of foreign exchange in connection with leveraged foreign exchange trading, without having effected a bona fide purchase or sale in accordance with the order.
        November 2010

    • Manipulation of Price of Futures Contract and Cornering

      • MAM-3.9.3

        Without prejudice to section MAM-3.1 no person shall, directly or indirectly:

        (a) Manipulate or attempt to manipulate the price of a futures contract that may be dealt in on a futures market, or of any commodity which is the subject of such futures contract; or
        (b) Corner, or attempt to corner, any commodity which is the subject of a futures contract.
        November 2010

    • Fraudulently Inducing Persons to Trade in Futures Contracts

      • MAM-3.9.4

        Without prejudice to section MAM-3.1 no person shall:

        (a) By making or publishing any statement, promise or forecast that he knows or ought reasonably to have known to be false, misleading or deceptive;
        (b) By any dishonest concealment of material facts;
        (c) By the reckless making or publishing of any statement, promise or forecast that is false, misleading or deceptive; or
        (d) By recording or storing in, or by means of hard copy or any mechanical, electronic or other device information that he knows to be false or misleading in a material particular;

        induce or attempt to induce another person to trade in a futures contract or engage in leveraged foreign exchange trading.

        November 2010

      • MAM-3.9.5

        In any proceedings against a person for a contravention of rule MAM-3.9.4, constituted by recording or storing information as mentioned in rule MAM-3.9.4 (d), it is a defence if it is established that, at the time when the defendant so recorded or stored the information, he had no reasonable grounds for expecting that the information would be available to another person.

        November 2010

    • Employment of Fraudulent or Deceptive Devices and Practices

      • MAM-3.9.6

        Without prejudice to section MAM-3.1 no person shall directly or indirectly, in connection with any transaction involving trading in a futures contract or leveraged foreign exchange trading:

        (a) Employ any device, scheme or artifice to defraud;
        (b) Engage in any act, practice or course of business which operates as a fraud or deception, or is likely to operate as a fraud or deception, upon any person;
        (c) Make any false statement of a material fact; or
        (d) Omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading.
        November 2010

    • Dissemination of Information about Illegal Transactions

      • MAM-3.9.7

        Without prejudice to section MAM-3.1 no person shall circulate, disseminate, or authorise or be concerned in the circulation of dissemination of, any statement or information to the effect that the price of a class of futures contracts or foreign exchange in connection with leveraged foreign exchange trading will, or is likely to, rise or fall or be maintained because of the market operations of one or more persons which, to his knowledge, are conducted in contravention of section MAM-3.1 if:

        (a) The person, or a person associated with the person, has conducted such market operations; or
        (b) The person, or a person associated with the person, has received, or expects to receive, directly or indirectly, any consideration or benefit for circulating or disseminating or authorising or being concerned in the circulation or dissemination, the statement or information.
        November 2010