Catching market manipulators

Posted at 08/01/12 10:29 PM
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The Philippine Stock Exchange created the independent Capital Markets Integrity Corp. (CMIC) to catch market manipulators.

Just months after it was born, CMIC has filed a report with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) about trading in the shares of newly listed Calata Corp., a distributor of farm chemicals, fertilizer and feeds. Sources said that most of the questionable trades were handled by a handful of brokerages for new clients who appear to be dummies for an unidentified person.

The PSE may be cited for failing to check the backgrounds of their clients, but it's up to the SEC to get to the clients - the person or persons they are allegedly dummies of.

SEC chairwoman Teresita Herbosa said she can't speak because matters under investigation are confidential. CMIC president Antonio Gonzales also declined to comment, while Joseph Calata, CEO of the company at the center of investigations, has not replied to calls, text messages or e-mail.

Hans Sicat, president of the PSE, talks to ANC's Coco Alcuaz about the process. ANC News Now, August 1, 2012