The Philippine Stock Exchange has suspended the stock trading license of Gatchalian-controlled brokerage firm Westlink Global Equities Inc. for 15 days, due to alleged “manipulative practices.”
A memorandum issued on Thursday by the PSE’s market regulation division said the PSE’s market integrity board had suspended Westlink from the trading floor from June 29 to July 19, for alleged violation of certain provisions in the Securities Regulation Code as well as the PSE’s trading and settlement rules on manipulative practices.
The PSE specified Westlink’s alleged violation of Section 24 (a) of the SRC as well as SRC Rule 24.1 (b)-1, Section 1.
Section 24 of the SRC talks about the manipulation of security prices, devices and practices. Section 24 (a) says it is “unlawful” for any person acting for himself or through a dealer or broker, directly or indirectly, to “create a false or misleading appearance of active trading in any listed security traded in an exchange or any other trading market.”
The alleged violations were uncovered after the PSE’s audit on the brokerage firm, covering Jan. 1, 2008 to Jan. 31, 2009.
In August 2009, Westlink was likewise suspended by the PSE because its capital and net liquidity at that time fell short of the minimum requirements for active trading participants.
As of press time, Westlink had no comment on the suspension imposed by the PSE.