Director of Australian FX Brokerage under spotlight

Vantage FX's parent firm Efinium's Director is under the spot light with Hong Kong regulators on allegations of stock rigging.

Duncan Tak Keung Chui is alleged to have conspired to pump up the price of a Hong Kong-listed company in the days before a capital raising in January 2009.

Mr Chui became a director of Enfinium in May after the private equity group he heads, China Private Equity Investment Holdings, bought a 30 per cent stake in the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trader for $US6 million in shares.

His run-in with Hong Kong's Market Misconduct Tribunal is unrelated to action taken against Enfinium earlier this month by US regulator the Commodity Futures Trading Commission.

The CFTC alleges Enfinium and its subsidiary Vantage FX, which offer internet trading in highly leveraged foreign exchange contracts to retail and wholesale customers, operate without US registration. Enfinium says it does not need US registration because it does not accept US customers.

Hong Kong Financial Secretary John Tsang, who is responsible for financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term as a member of the Chinese Special Administrative Region's executive council, wrote to the Market Misconduct Tribunal in April outlining his allegations against Mr Chui. In a statement to the Stock Exchange of Hong Kong, Sino Katalytics, now known as Capital VC, said the tribunal's hearings are due to start on October 19.

Mr Tsang alleged Mr Chui and Peter Yau Chung Hong ramped up the share price of Sino Katalytics Investment Corporation, where they were both executive directors, by 31 per cent on January 9, 2009. Mr Yau was responsible for 89 per cent of that day's sales in the stock, while Mr Chui was responsible for 62 per cent of purchases, Mr Tsang alleged.

''Chui and Yau were in frequent telephone contact on January 9, 2009, and their transactions during the 20 minutes prior to the market close had the appearance of being co-ordinated.''

In interviews with Hong Kong's Securities and Futures Commission, both men ''denied working with each other … to push up the company's share price'', Mr Tsang said.

Mr Chui's China Private Equity bought its stake in Enfinium from British Virgin Islands-registered Furuya Consultants.

Hong Kong company documents show Furuya assumed complete control of Enfinium's Hong Kong-registered owner, Enfinium International Holdings, last year by buying the half it did not already own from Hong Kong company Zetland Nominees. Zetland Nominees' sole human director is Hong Kong-based accountant James Campbell Sutherland, a former associate of a central figure in collapsed super fund Trio Capital, Jack Flader.

Through another Hong Kong company, Transworld Investments, Zetland was also the owner of Vantage FX until Enfinium took it over in August last year.

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