THREE floor traders formerly employed by brokerage firm China Kind Investments have been slapped with suspensions ranging from one to three years for rat trading, the Securities and Futures Commission announced last night.
This is believed to be one of the strongest sanctions ever imposed by the stock exchange on its members for rat trading.
The commission claimed that the three dealer representatives engaged in rat trading through the use of a nominee account.
Such malpractice, whereby floor traders take advantage of clients' orders, is termed rat trading.
Following an investigation by the commission, Lin Wang-man was barred from trading for three years, while Chan Man-chuen and Lau Shek-ki were handed one-year bans.
All three had been barred by the Stock Exchange of Hong Kong and the commission from representing their company on the floor of the stock exchange in November following allegations of rat trading.
