archives

MAR

This category contains 109 posts

$16m fine in the US, other US fines, and a fine alternative in Northern Ireland

Kraft Heinz Co and Mondelez International Inc have been fined $16 million in the US by the CFTC for market manipulation. The press release can be found here and the order here. The companies are accused to have built up significant positions in wheat futures, with no intention of taking delivery thus sending a false … Continue reading

Inside information – FCA Market Watch

The UK’s Financial Conduct Authority (FCA) has issued their latest “Market Watch” newsletter (number 60). It can be found here. The focus is on the control of access to inside information, following the recent convictions in the case against a UBS compliance officer and a day trader (see here). The newsletter looks at some of … Continue reading

Anti abuse cases worldwide

Vitol is in danger of being fined $6M in the US  for alleged manipulation in California’s power market. The regulator FERC has issued this “Order to Show cause”. An article on the topic can be found here on Reuters.  Also in the US, a firm has been fined $350,000 for engaging in wash sales on … Continue reading

Market abuse – Insider trading, $25m spoofing fine in the US and discussion on intra-day trading rules

The long running case against Fabiana Abdel-Malek, a former compliance officer at UBS AG, and Walid Choucair a day trader (see here) has returned a “guilty” verdict. Abdel-Malek was accused of providing Choucair with inside information in person, using a “burner” phone and personal meetings to communicate. The case is reported here on FT.com and here on … Continue reading

Anti abuse news – and a panel

Recent market manipulation cases (for example see here) have continued the trend of an increased focus on anti abuse activity on the part of regulators. Earlier this year, the UK’s FCA issued a business plan (see here) which included a further focus on anti abuse activity under MAR. The FCA uses data collected under MiFID … Continue reading

Mis-marking case in the US

The CFTC has charged a former natural gas trader for fraudulently mis-marking physical and futures natural gas trades, as announced in this press release. David Smothermon is alleged to have engaged in a multifaceted scheme that, among other things, involved causing false and deceptive entries in the company’s internal record-keeping system to exaggerate the value … Continue reading

FCA issues “Dear CEO” letter to wholesale brokers

The UK’s Financial Conduct Authority(FCA)  has issued this open letter to the CEOs of wholesale brokers, across several asset classes. The letter identifies some issues observed by the FCA at broker firms, focusing on four issues that could be causing “harm”: Compensation arrangements Governance arrangements Dealing with conflicts of interest A culture and mindset that … Continue reading

Anti abuse trials

See here for an article on Bloomberg about the ongoing case of Fabiana Abdel-Malek, a former compliance officer at UBS AG, and Walid Choucair a day trader. It is alleged that  Abdel-Malek gave “tips” based on inside information to Choucair. The article  mentions that a “burner” phone was used, with SIM cards being switched frequently. … Continue reading

Appeal against “improper monitoring” fine fails

Last week, the UK’s Upper Tribunal rejected an appeal lodged by Linear Investments against a fine of £409,300 levied against them by the UK’s FCA  last October (see here). The fine was levied under legislation that pre-dates the Market Abuse Regulation(MAR) relating to the requirement on financial firms to appropriately monitor activity for market abuse, … Continue reading

Updated MAR Q+A – News on EAMP requirements

Last week ESMA published this updated version of the Questions and Answers document on the Market Abuse Regulation. It contains some additional information on the rules that apply to “Emissions Allowance Market Participants” (EAMPs). An EAMP has additional requirements under MAR, including the obligation to publish certain types of “inside information” relating to the emissions. … Continue reading