A swathe of insider trader and market manipulation cases has
revealed how white collar criminals are using complex financial
products including contracts for difference (CFD) to avoid
detection.
Lawyers said the highly leverage nature of CFDs made them
particularly tempting for younger traders because they require far
less capital and can reap larger profits than if the same amount
was invested in underlying shares. Recent cases have reflected an
increased popularity of CFDs, including that of Nigel Derek Heath,
51, of Wahroonga in Sydney who pleaded guilty to two market
manipulation charges at the Downing Centre Local Court on
Tuesday.
The charges against the experienced day trader – who had a
$1.4 million CFD portfolio and a masters in law – concerned
trades in four resource companies between February 16, 2012
and October 11, 2013.
