FCA says case of market abuse by three traders and two investment firms shows they will take robust action to ensure integrity of UK markets
Three Hungarian traders and two investment firms have been ordered to pay £7.5m after manipulating the share prices of 186 companies in London. The high court made the ruling in a case brought by the Financial Conduct Authority, which had obtained a temporary injuction in 2011 to stop them embarking on a process known as layering, or spoofing. Under this process, lots of orders are entered into a trading system to move share prices, with the aim of allowing the traders to profit from the change in price.
It is the first time that the FCA has asked the high court to impose a penalty and a permanent injunction to restrict market abuse.
Source: The Guardian Circular Economy RSS