EN / PL
menu

Homepage > News > Former trader fined by FCA for “wash trading”

Former trader fined by FCA for “wash trading”


The UK Financial Services Authority (FCA) has fined Adrian Geoffrey Horn, a former trader at Stifel Nicolaus Europe Limited. The reasons for the FCA’s decision include wash trading that Horn practiced.

The FCA’s decision requires Horn to pay a fine of £52,500 for carrying out prohibited transactions on its own account using McKay Securities Plc’s shares traded on the FTSE All Share Index. In addition, he was permanently banned from accessing any regulated exchange for inappropriately acting as buyer and seller in the same transactions, a practice known as wash trading.

The fraud occurred when McKay was a corporate client of Stifel. Horn’s motive for wash trading was to create the appearance of market activity to ensure McKay could remain in the stock market index. In addition, wash trading artificially inflated McKay’s trading volume reported on the market. Horn believed that by helping McKay to stay on the FTSE All Share index, it would improve the relationship between Stifel and its client

The regulator lowered the penalty for the trader

The investigation established that Horn had made equal and opposite transactions in 129 wash trading cases. The procedure lasted from July 18, 2018 to May 22, 2019. According to Mark Steward, FCA’s CEO for Enforcement and Market Surveillance, Horn’s manipulation was of a serious nature. It is worth noting, however, that the FCA appreciated Horn for the “high level of cooperation” in the investigation, including the full admission of guilt since the start of the regulator’s investigation. As a result, this led to a 25% reduction in the fine as well as a further 30% reduction following the concluded settlement.

 

Author: Izabela Kamionka

Are you a trader?

Help others and rate your broker! Use the search engine or find your broker on the list.



Ad:

Last news:

bucharest exchange with record value of transactions

Stocks Surge on Positive May Jobs Report and Senate Debt Ceiling Bill Approval

Stocks rallied on Friday following the release of a robust May jobs report and news ...
Read More
fdic

FDIC Reports Largest Deposit Decline in US Banks in 39 Years

US banks faced a significant setback in the first quarter as they experienced the largest ...
Read More
nvidia

Nvidia CEO Receives Rock Star Reception in Taiwan as AI Stocks Surge

Jensen Huang, the CEO of chip phenomenon Nvidia Corp. (NVDA), is currently enjoying celebrity treatment ...
Read More
turkish lira

Turkish Lira Hits All-Time Low as Erdogan Wins Re-election

The Turkish lira reached a new record low following the re-election of incumbent President Recep ...
Read More

Add a comment

Your email address will not be published. Required fields are marked *

 

Note: Opinions and posts on ForexRev.com represent personal opinions and views of their respective authors and should not be interpreted as recommendations to purchase or sell securities. ForexRev.org assumes no responsibility or liability for such content.
Go to top