Court upholds record market rigging fine for Swift Trade
By Huw Jones | January 28, 2013 11:21 PM EST
A British court has upheld the Financial Services Authority's 8 million pound fine for Canadian trading firm Swift Trade, the FSA's largest penalty for market manipulation.
The FSA said Swift Trade engaged in "systematic and deliberate" trading practices known as "layering" - posting tens of thousands of orders on the London Stock Exchange
Following a transatlantic probe involving Canada and the United States, the FSA fined the now-dissolved firm in August 2011 but an appeal with the Upper Tribunal was lodged.
"The Tribunal described this as being 'as serious a case of market abuse of its kind as might be imagined'," the FSA said on Monday. FSA director of enforcement, Tracey McDermott added: "We urge other market participants to take note of this judgment which makes it clear that layering is abusive."
Canadian law allows the FSA to pursue collecting the fine as if the company had not been wound up. Swift Trade was voluntarily dissolved under Canadian law in December 2010 and its assets transferred to BRMS Holdings.
Although the UK watchdog has known it may not get all or even part of the fine from Swift Trade, it will continue to pursue the affiliate for money. The regulator was also keen for a court to formally acknowledge that layering is illegal.
The case is part of the FSA's "credible deterrence" policy of cracking down harder on market manipulation with a willingness to take on costlier and complex cross-border probes.
The FSA expects brokers and those who give traders direct access to exchanges, to have appropriate controls to spot and report abuses, McDermott said.
Swift Trade and its chief executive Peter Beck had also challenged the FSA's right to publish its decision to fine the company before the appeal had run its course. The Tribunal dismissed this challenge in 2011.
The FSA said the Tribunal's latest decision to uphold the fine also dismissed Beck's challenge to being named in the FSA's 2011 decision to fine Swift Trade.
Swift Trade, its affiliate Biremis Corp, Peter Beck and others have recently agreed settlements with the Ontario Securities Commission, the U.S. Securities and Exchange Commission, and the U.S. Financial Industry Regulatory Authority, the FSA said.
(Reporting by Huw Jones; Editing by Sophie Walker)
Most Popular Slideshows
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- Three Dual SIM Samsung Galaxy Note 4 Duos Variants Comes To China
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- ‘Lone Wolf’ Attack on Canada Parliament Hill Could be ISIS-Related
- Android Lollipop 5.0 Confirmed for Nov 3 Rollout as Nexus 6 Global Release Date is Delayed – Reports