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Tribunal upholds FSA decision to fine Canada's Swift Trade for market abuse

Jan 28 2013 Compliance Complete news team

The Upper Tribunal (Tax and Chancery Chamber) has directed Britain's Financial Services Authority to fine Swift Trade £8 million for layering, the abusive placing of large orders which there is no intention to fill. The FSA fined Swift Trade, a non-FSA authorized Canadian company with global operations, in 2011. In a statement accompanying its decision notice on August 31, 2011, the regulator said: "In the FSA's opinion, between January 1, 2007 and January 4, 2008, Swift Trade's manipulative trading caused a succession of small price movements in a wide range of individual shares on the London Stock Exchange from which Swift Trade made substantial profits … It has not been possible to measure Swift Trade's profits precisely; however, they were in excess of £1.75 million."  In its decision the tribunal said Swift Trade's conduct was "deliberate, manipulative market abuse in the form of'layering' and was not undertaken in accordance with recognized market practice". It also dismissed

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