price manipulation, page-31

It would seem there have been many attempts to get a result, what does it take - One previous well presented submission attached - basically ignored. Just my thoughts.


Kingp100 ? 02.04.10

Over on the MEO forum, rage against the bots is starting to gain momentum. The below mail has been sent to the ASX. Also similar info has been sent to the various media and to the ombudsmun:

You can also do your bit by flooding the ASX with emails.. By law they have to reply to each one.
GL


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.
.
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
___________________________________

This is the reply,

where to from here,anybody???


Our Reference: 14341/10

6 April 2010

Dear Sir/Madam,

ASX LIMITED (ACN 008 624 691), CUE ENERGY RESOURCES LIMITED (ACN 066 383 971)

Thank you for your correspondence of 29 March 2010 in which raise concerns about "bot" trading in relation to the securities of Cue Energy Resources Limited.

ASIC values the information we receive from the public, and complaints such as yours assist ASIC in working to build confidence in the integrity of the capital markets.

ASIC conducts an assessment of every complaint we receive. The issues you have raised will receive careful consideration, and have been recorded on our internal intelligence database.

In determining which matters we will select for further action, consideration is given to the availability of evidence, and a range of factors, including the likely regulatory effect of any available action.

As ASIC is precluded from commenting on operational matters, we are unable to provide further details regarding what, if any, action we may or may not take in relation to the concerns you have raised.

If you require any information on our role as a market supervisor, or enforcement action taken by ASIC, please visit ASIC's website at www.asic.gov.au.

Please note that ASIC will only contact you again in relation to your complaint if we require further information or evidence to assist in our enquiries.

Yours sincerely
Romina

Romina Dein
Misconduct & Breach Reporting
Stakeholder Services