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Recommendation for Administrative Monetary Penalty Payment Order for Market Manipulation in Shares of ANYCOLOR, Inc. and Four Other Securities by Sigmago Co., Ltd.
1. Contents of the Recommendation
The Securities and Exchange Surveillance Commission, today, made a recommendation to the Prime Minister and the Commissioner of the Financial Services Agency that an administrative monetary penalty payment order be issued in regard to market manipulation by Sigmago Co., Ltd. (“Sigmago”) pursuant to Article 20(1) of the Act for Establishment of the Financial Services Agency.
This recommendation is based on the findings of an investigation into market manipulation, whereby the following violations of laws and ordinances were identified.
This recommendation is based on the findings of an investigation into market manipulation, whereby the following violations of laws and ordinances were identified.
2. Summary of the Findings Regarding Violations of Laws and Ordinances
Sigmago is a company with its registered office located in Hong Kong, engaged in proprietary trading in shares and other securities for profit.
Sigmago, through its traders in the course of their duties, engaged in the following acts for the purpose of inducing others to purchase or sale shares of ANYCOLOR, Inc., Asahi Intecc Co., Ltd.,, giftee Inc., RAKUS Co., Ltd., and RENOVA, Inc., through Foreign Securities Firm A and two other firms.
To buy at lower prices, Sigmago:
Sigmago, through its traders in the course of their duties, engaged in the following acts for the purpose of inducing others to purchase or sale shares of ANYCOLOR, Inc., Asahi Intecc Co., Ltd.,, giftee Inc., RAKUS Co., Ltd., and RENOVA, Inc., through Foreign Securities Firm A and two other firms.
To buy at lower prices, Sigmago:
・ placed multiple layers of sell orders at the best offer or inferior prices;
・ decreased prices by placing limit sell orders below the most recent execution price.
After that, to sell at higher prices, Sigmago:
・ placed multiple layers of buy orders at the best bid or inferior prices;
・ increased prices by placing limit buy orders above the most recent execution price.
These acts were conducted by Sigmago with respect to the stocks during the periods set forth below. (Note: The behavior of misconduct is shown in 
Appendix 1.)⑴ With respect to the shares of ANYCOLOR, Inc. listed on the Tokyo Stock Exchange, Inc. (“TSE”), Sigmago, through the above method, conducted entrusted sales of a total of 2,100 shares and purchases of a total of 12,800 shares, as well as entrusted purchases of a total of 1,300 shares and sales of a total of 12,800 shares during the period from 9:19:30 a.m. to 9:33:23 a.m. on February 13, 2023, as described in Schedule 1 of Appendix 1.
⑵ With respect to the shares of Asahi Intecc Co., Ltd. listed on the TSE and the Nagoya Stock Exchange, Sigmago, through the above method, conducted entrusted sales of a total of 200 shares and purchases of a total of 18,000 shares, as well as entrusted purchases of a total of 2,900 shares and sales of a total of 17,600 shares during the period from 12:35:07 p.m. to 12:51:18 p.m. on February 14, 2023, as described in Schedule 2 of Appendix 1.
⑶ With respect to the shares of giftee Inc. listed on the TSE, Sigmago, through the above method, conducted entrusted sales of a total of 1,000 shares and purchases of a total of 15,400 shares, as well as entrusted purchases of a total of 2,000 shares and sales of a total of 15,400 shares during the period from 9:45:47 a.m. to 9:56:31 a.m. on February 15, 2023, as described in Schedule 3 of Appendix 1.
⑷ With respect to the shares of RAKUS Co., Ltd. listed on the TSE,
a. Sigmago, through the above method, conducted entrusted sales of a total of 1,000 shares and purchases of a total of 19,900 shares, as well as entrusted purchases of a total of 3,300 shares and sales of a total of 19,800 shares during the period from 10:12:47 a.m. to 10:35:14 a.m. on February 15, 2023, as described in Schedule 4 of Appendix 1.
b. Sigmago, through the above method, conducted entrusted sales of a total of 1,800 shares and purchases of a total of 20,200 shares, as well as entrusted purchases of a total of 2,800 shares and sales of a total of 20,200 shares during the period from 9:12:57 a.m. to 9:23:39 a.m. on February 16, 2023, as also described in Schedule 4 of Appendix 1.
⑸ With respect to the shares of RENOVA, Inc., listed on the TSE, Sigmago, through the above method, conducted entrusted sales of a total of 2,100 shares and purchases of a total of 23,800 shares, as well as entrusted purchases of a total of 2,700 shares and sales of a total of 23,800 shares during the period from 12:33:23 p.m. to 12:49:54 p.m. on February 16, 2023, as described in Schedule 5 of Appendix 1.
By these acts, Sigmago conducted a series of purchase or sales of securities and entrustments that would mislead others into believing that purchase or sales in each of the above shares were thriving and would cause fluctuations in prices of the shares listed on the TSE.
A summary of the findings is shown in the
Chart.The above acts by Sigmago were found to constitute “a series of purchase and sales of Securities, etc.” and “Entrustments, etc.” conducted “in violation of Article 159(2)(i)” as stipulated under Article 174-2(1) of the Financial Instruments and Exchange Act (“FIEA”).
3. Calculation of the Amount of the Administrative Monetary Penalty
Pursuant to the FIEA, the amount of the administrative monetary penalty applicable to the above violations is 1,470,000 yen. (Note: The calculation is shown in Appendix 2.)
Appendix 2.)
4. Acknowledgements
We appreciate the assistance of the China Securities Regulatory Commission, the Hong Kong Securities and Futures Commission, the United Kingdom Financial Conduct Authority, and the Japan Exchange Regulation in this matter.
