{"id":10055,"date":"2011-08-20T22:08:33","date_gmt":"2011-08-20T22:08:33","guid":{"rendered":""},"modified":"2011-08-20T22:08:33","modified_gmt":"2011-08-20T22:08:33","slug":"Four-Deutsche-employees-charged-with-manipulating-Seoul-stock-market","status":"publish","type":"post","link":"https:\/\/asiancemagazine.com\/?p=10055","title":{"rendered":"Four Deutsche employees charged with manipulating Seoul stock market"},"content":{"rendered":"

South Korean prosecutors have charged four Deutsche Bank employees with illegally manipulating Seoul’s stock market last year to earn more than $40 million on a single day, a report said Sunday.
\n<\/strong>
\nYonhap news agency said the German bank’s Seoul securities unit and the four workers — including three foreigners — were accused of amassing 44.8 billion won ($41.3 million) through illegal trading on the spot and futures markets.<\/p>\n

The bank’s Hong Kong unit and securities unit in Seoul have been under investigation for alleged market manipulation and unfair transactions last November 11, an options expiry day.<\/p>\n

On that day, Seoul’s benchmark KOSPI share index fell a hefty 48 points in the session’s last 10 minutes due to arbitrage trading between the spot and futures markets.<\/p>\n

During that time about 2.4 trillion won ($2.16 billion) in sell orders from foreign investors were processed<\/strong>, most of them through Deutsche Bank’s local securities unit.<\/p>\n

The KOSPI ended the day 53.12 points, or 2.79 per cent, lower at 1,914.73.<\/p>\n

Prosecutors said Deutsche Bank’s securities unit in Seoul and the four workers knowingly placed heavy sell orders so as to pocket massive returns from put options<\/strong>, which were structured to generate profits if the KOSPI plunged.<\/p>\n

South Korea’s securities market — the world’s largest in terms of volume of stock index options trading <\/strong>— saw its stability and transparency “seriously damaged” by the scheme, he said.<\/p>\n

The four have refused summonses by prosecutors, who plan to ask Hong Kong authorities and Interpol to help extradite them if they refuse to appear in court<\/strong>, the agency said without specifying their current locations.<\/p>\n

In January, local authorities announced new rules designed to reduce the risk of sharp stock market volatility triggered by derivatives trading.<\/p>\n

In February, Seoul financial authorities suspended some local Deutsche Bank operations for six months over the alleged market manipulation, the toughest-ever penalty imposed against a foreign securities firm.<\/p>\n

Source AFP<\/em>
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South Korean prosecutors have charged four Deutsche Bank employees with illegally manipulating Seoul’s stock market last year to earn more<\/p>\n","protected":false},"author":1,"featured_media":70655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[],"tags":[],"class_list":["post-10055","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"magazineBlocksPostFeaturedMedia":{"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"colormag-highlighted-post":false,"colormag-featured-post-medium":false,"colormag-featured-post-small":false,"colormag-featured-image":false,"colormag-default-news":false,"colormag-featured-image-large":false,"colormag-elementor-block-extra-large-thumbnail":false,"colormag-elementor-grid-large-thumbnail":false,"colormag-elementor-grid-small-thumbnail":false,"colormag-elementor-grid-medium-large-thumbnail":false},"magazineBlocksPostAuthor":{"name":"Admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/53e6cdc30765aade0129f85e5aeb50124b1d3f5bb9a70373be31e4eb328371e0?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"South Korean prosecutors have charged four Deutsche Bank employees with illegally manipulating Seoul’s stock market last year to earn more","magazineBlocksPostCategories":[],"magazineBlocksPostViewCount":134,"magazineBlocksPostReadTime":2,"magazine_blocks_featured_image_url":{"full":false,"medium":false,"thumbnail":false},"magazine_blocks_author":{"display_name":"Admin","author_link":"https:\/\/asiancemagazine.com\/?author=1"},"magazine_blocks_comment":0,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/53e6cdc30765aade0129f85e5aeb50124b1d3f5bb9a70373be31e4eb328371e0?s=96&d=mm&r=g","magazine_blocks_category":"","_links":{"self":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/posts\/10055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10055"}],"version-history":[{"count":0,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/posts\/10055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/media\/70655"}],"wp:attachment":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}