SC investigates disruptive price movements

The SC views seriously the recent disruptive price movements in the market and has initiated investigations in this respect.

The maintenance of a fair and orderly market is of paramount importance and the SC is working closely with the exchange and market intermediaries, including stockbrokers to maintain market integrity and high standards of market conduct.

In addition, the SC is reviewing the risk management practices, compliance systems and the application of the know-your-client rule by market intermediaries.

The SC reminds all intermediaries and participants of their role and responsibilities in upholding market integrity.

The SC will take appropriate action to punish wrongdoers.

SECURITIES COMMISSION
12 May 2005