UK watchdog plans to fine London trader for market manipulation
Reuters Staff, 16 September 2020
Britain’s Financial Conduct Authority (FCA) said on Wednesday it would impose a 100,000-pound fine on a London trader for market abuse and prohibit him from performing any functions related to regulated activity.
Corrado Abbattista, partner and chief investment officer at Fenician Capital Management LLP, repeatedly placed “large misleading” orders for Contract for Differences (CFDs), referenced to equities, between Jan. 20 and May 15, 2017, which he did not intend to execute, the FCA said bit.ly/32yIuuk.
At the same time, he placed smaller orders that he did intend to execute on the opposite side of the order book to the misleading orders, the financial regulator added.
The markets watchdog said the orders were for volumes of shares far greater than the typical market size, which would also have created a false and misleading impression regarding the true supply of and demand for the shares.
The FCA said Abbattista has referred its decision notice to the Tribunal, where both sides will present their cases.
