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SEC focuses on price manipulation

20/12/2002 13:30

M. Clerides’ statements to “SW” over Market makers and the “tricks” with regard to the final results of the Banks


The Securities and Exchange Commission examines the possibility that the recent sharp falls in the CSE are attributable to price manipulation and not to Market makers and their attempt to decline prices.

The same conjecture stands for the results of the banking titles as well, whose trading is “under close observation” by the SEC in the face of the final financial results of their portfolio as at 31/12/2002, said the head of the Regulatory Body Marios Clerides to StockWatch, stressing that the representations of several stockbrokers requesting SEC’s intervention in the Market makers case is due to “ignorance and misunderstanding”.

Mr. Clerides said that SEC is well aware of who sells and buys and MMs are not to be blamed for the CSE situation. “If recent developments in the CSE concern price manipulation, this is an issue we should examine”, he added.

Mr. Clerides pointed out that the attention should not be focused on the ups and downs of the CSE but to the way orders are given, that is as to how prices are manipulated (trading at the closing of the session and “Triangular markets”).

Meanwhile, SEC’s Chairman rejected the possibility that the consecutive drops of the CSE are related to banks’ financial results for 2002, stressing that SEC examines the possibility of price manipulation by “tricks”.

Stockbrokers

On the other hand, several stockbrokers believe that the recent sharp falls in the CSE are normal. It is the “phenomenon of avalanche”, occurred after EU’s decision to access Cyprus in the Union.

“It is clear that investors have proceeded to the act of selling ahead of their lack of patience and the absence of investors interest”, stockbrokers said to “SW”.

It is worth mentioning, however, that all stockbrokers agree that the recent political developments along with the possible solution of the Cyprus partition problem affect the CSE general index negatively and boost investors’ lack of interest.