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UPDATE 1-Japan regulator seeks to penalise Select Vantage for stock manipulation

manipulation@ (Recasts, adds Select Vantage details and background)

TOKYO, Feb 18 (Reuters) - Japan's Securities and Exchange Surveillance Commission said on Tuesday it has uncovered a manipulation scheme involving nearly 90 Japanese stocks by traders from Anguilla-based company Select Vantage Inc.

The watchdog recommended fining the firm 60,000 yen ($590) after discovering attempts to manipulate the price of shares in Torishima Pump Mfg Co and Hoshizaki Electric Co Ltd by placing large buy orders and cancelling them before they could be executed.

A total of 88 stocks saw similar manipulative trading, the SESC said. The trades took place in April 2012.

Fines in Japan for financial regulatory violations are very low by global standards, although reputational damage can be a major concern for penalised institutions.

Select Vantage is a proprietary trading firm registered in the Caribbean island of Angullia. It employs more than 2,750 traders in over 230 locations in China, Europe and Latin America, the SESC said.

The company was set up in 2011 by taking over the trading system and traders from Canadian firm Swift Trade, which was penalised over wrongdoing and lax control by authorities in the United States, the United Kingdom and Canada in 2011 and 2012.

($1 = 101.9050 Japanese yen)

(Reporting by Noriyuki Hirata and Taiga Uranaka; Editing by Jacqueline Wong and Miral Fahmy)