Judge: Tiger Asia Can't Be Barred From Trading

Jul 14 2011 | 1:07pm ET

Hong Kong's financial services regulator can't take Tiger Asia Management's money and it can’t keep the firm from trading, either, a judge has ruled.

Indeed, the Securities and Futures Commission can't do much at all to the New York-based hedge fund, which it has accused of insider trading, without first proving its case in another court, Judge Jonathan Harris said. Harris, who last month ruled he had no jurisdiction to impose an asset freeze on Tiger Asia, today added that the city's High Court also lacks the authority to issue a trading ban against the hedge fund without a tribunal or criminal court finding.

The SFC said it would appeal both rulings.

The SFC has accused Tiger Asia of insider-trading twice in less than a year. It had asked Harris to freeze some HK$38.5 million (US$5 million) in assets and to bar the firm and the three executives from trading in the special administrative region.

According to the SFC, Tiger Asia, on founder Bill Hwang’s orders, made a pair of illegal trades after learning confidential information about two placements of Bank of China shares in late 2008 and early 2009. Those allegations followed 2009 charges that Tiger Asia had illegally traded shares of the China Construction Bank Corp.

The SFC last month, after Harris' first ruling, opened civil proceedings against Tiger and the three executives, including Hwang, in Hong Kong's Market Misconduct Tribunal. The regulator had been loathe to do so, as the proceedings immunize the hedge fund and its executives from criminal prosecution.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.