Market Integrity and the words ASIC or ASX should never be used...

Market Integrity and the words ASIC or ASX should never be used in the same sentence.

ATTENTION:

ASIC COMPLAINTS & ASX SURVEYLANCE

I would like you to investigate the share trading and market depth in FKP PROPERTY GROUP STAPLED (code FKP) on Wednesday July 4th, particularly after 3pm.

this is a video posted on Youtube when the algorithm was out of control, the poster writes...

"Here's a great example of the potential consequences when one of these trading algorithms goes wrong. I missed capturing the start of this, but hundreds of 30k sells started hitting the 40c depth out of nowhere. Imagine the carnage if this was a bot that ticked down with each new entry, not just sat at 40c! I'll post a sped up version when I get a chance, but they realise the error at about 4.45min in."

http://www.youtube.com/watch?v=5rOdPVMFkEA&feature=youtu.be

sell volume goes up from 123 million at the start of the video (at 40 cents) to a peak of 166 million, rising 5 million per 15 seconds, then descends at the same rate when the botmaster intervenes, going from 166 million to almost ZERO in the next 12 minutes. I know that ASIC are under-resourced, so here is some help in maybe identifying who holds that amount of shares, that are able to make this sort of thing happen. Also i note that the share price since then has fallen to 36.5 cents, with no announcement and no "please explain" from ASX, why would that be ?

top 10 shareholders in FKP

Citicorp Nominees Pty Limited 225,408,200 18.82
Stockland Retirement Pty Limited 173,421,584 14.48
National Nominees Limited 122,008,280 10.18
HSBC Custody Nominees (Australia) Limited 76,435,688 6.38

J P Morgan Nominees Australia Limited 75,499,397 6.30

Citicorp Nominees Pty Limited 64,418,112 5.38
AMP Life Limited 41,158,388 3.44
HDFI Nominees Pty Ltd 32,147,126 2.68
Cogent Nominees Pty Limited 29,637,661 2.47
Citicorp Nominees Pty Limited 29,048,217 2.42

Yours Sincerely,
XXXXXXXXXX

ASX reply.....

11 July 2012

Dear Botkiller

RE: FKP Property Group (FKP)

Thank you for raising your concerns with the ASX Group. ASX appreciates information that is received from investors, as it assists with our function as a Market Operator.

We note that you have raised the issue of abnormal trading which may have involved algorithmic trading. This type of matter relates to market integrity and the Corporations Act and the regulatory body in charge of this area is the Australian Securities and Investments Commission (ASIC).
ASX has referred your complaint to ASIC. If you have any future enquiries or correspondence in relation to this matter, we recommend that you direct them to ASIC. Please refer to the link below to find out how you may lodge a complaint with ASIC:

http://www.asic.gov.au/asic/asic.nsf/byheadline/Complaining+about+companies+or+people?openDocument#how

We also note that you have raised concerns about continuous disclosure in regards to recent trading in FKP. We have reviewed the trading in FKP and based on this review, we have not seen any indications which suggest that FKP Property Group may not be complying with its continuous disclosure obligations. We do not feel that a price query is appropriate at this stage.

For more information on the ASX Compliance function please refer to this link:

http://www.asx.com.au/compliance/index.htm
Thank you for bringing your concerns to our attention.

Yours sincerely,
Customer Service ASX Group

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Check out todays huge drop in volume and tight trading range, many at centre point trade levels like 37.75c, so that 38c sellers cant get hit (like me sitting 2nd in queue at 38c). 241 trades to date, value of trades of most of them range between 37 cents and $300. Over and out.