Market abuse

As we all know, the FSA been stepping up the pressure on market abuse as part of its ‘credible deterrence’ strategy and will happily take enforcement action against firms and individuals.

Therefore the publication by the FSA of Final Notices in respect of Darren Morton and Christopher Parry, two bond traders at Dresdner Kleinwort, will not have come as a surprise given that both were accused of market abuse following trades made after receipt of inside information.

However what is unusual is that both individuals were only subject to censure and escaped a fine and/or a ban which would now seem par for the course.

Various reasons cited in the Final Notices (which can be accessed via the link below) include the fact that neither had personally profited; didn’t act deliberately etc.

Separate reports suggest that the relatively light punishment is actually due to the two of them contesting the case (it is clear from both Notices that each put up a spirited defence) and the FSA being less sure of its ground that usual rather than the FSA softening its new hard line approach.