FSA urged to fine U.S. hedge fund

JIJI

The Securities and Exchange Surveillance Commission recommended Thursday that the Financial Services Agency slap a ¥65.71 million fine on U.S. hedge fund Tiger Asia Partners LLC for market manipulation.

According to the securities watchdog, Tiger Asia deliberately placed a large quantity of buy orders for Yahoo Japan Corp. shares on March 17, 2009, in an attempt to raise their prices.

After trading in its shares ended on the first section of the Tokyo Stock Exchange on that day, Yahoo announced it would buy back its own shares at the day’s closing price.

Tiger Asia then sold about 690,000 Yahoo shares to the company, including those already on its books before the trading, to make a profit of about ¥700 million.

The investigation was conducted in cooperation with the U.S. Securities and Exchange Commission.