todays action, page-12

I just sent a ticket to ASIC and ASX slightly modified:

Dear Sir/Madam,

On Thursday the 1/4/2010 I noticed that an algorithmic trading bot, was, between 10.05am and 12.43pm responsible for trying to manipulate the Share price of MEO Australia Limited -ASX;MEO for the purposes of accumulating stock at a lower price only to then sell it at a higher price later on. IE, Trying to suppress/manipulate MEOs share price and subsequent shareholders. This was done by the "bot" selling down small parcels of shares at roughly 2 minute intervals to manipulate and drive stock holders to sell.
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In light of this price change, and restriction to "fair" trading, please respond to each of the following questions;

1. Is the ASX aware of any information that could explain the ASX's inability or negligence in permitting the use of artificial algorithmic trading bots, to deliberately manipulate the stock price of MEO on the listed day?

2. Is the ASX able to identify the company who issued and used the algorithmic trading bot on MEO responsible for artificially manipulating the stock price on the listed day?

3. Did the company responsible for the algorithmic trading that artifically suppressed the stock price pay full "retail" brokerage for each trade?

4. Is it true that the ASX are charging only 51 cents for each trade conducted by algorithmic trading bots and software?

5. Was the ASX aware that the algorithmic trading bot had been introduced to the network and was targeting in a virus like fashion, the MEO stock price?

6.1. If the ASX was not aware of this behaviour, does it consider that to be a breach of the fair trading act (1987), specifically, section II of the act, item 11 (2) (d), "whether....any unfair tactics were used against the consumer...by the person acting on behalf of the supplier", and section 12, (1) (g) "...makes a false or misleading representation concerning the price of goods or services".

6.2. "If the ASX was not aware of this behaviour, does it consider that the behaviour contravenes s 52 of the Trade Practices Act 1974. S 52 states that, 'A corporation shall not, in trade or commerce, engage in conduct that is misleading or deceptive or is likely to mislead or deceive.'

7. I contend that artificial stock price manipulation via algorithmic trading software (bots) is price coercion, and as such under the act, contravenes item 23 of the act. Does the ASX condone price coercion?

8. If the answer to question 1 is "Yes", can an announcement be made immediately? If not, why not, and when is it expected that an announcement will be made?

9. Is there any other information that the ASX may have, to explain the permitted inappropriate use of artificial algorithmic trading bots in the manipulated suppression of MEO stocks on the listed day?

10. Please confirm that the ASX is in compliance with all legal statutes in relation to fair and reasonable stock market trading.

ALSO,I Would like to draw to your attention

THE " AUSTRALIAN "

"Corporations Act 2001" Section 1041A


Chapter 7 Financial services and markets

Part 7.10 Market misconduct and other prohibited conduct relating to financial
products and financial services


Division 2 The prohibited conduct (other than insider trading prohibitions)

Section 1041A


484 Corporations Act 2001

Division 2The prohibited conduct (other than insider
trading prohibitions)
1041A Market manipulation
A person must not take part in, or carry out (whether directly or
indirectly and whether in this jurisdiction or elsewhere):
(a) a transaction that has or is likely to have; or
(b) 2 or more transactions that have or are likely to have;
the effect of:
(c) creating an artificial price for trading in financial products on
a financial market operated in this jurisdiction; or
(d) maintaining at a level that is artificial (whether or not it was
previously artificial) a price for trading in financial products
on a financial market operated in this jurisdiction.


Yours Faithfully