Swift Trade

Upper Tribunal Upholds FSA Swift Trade Market Abuse Fine

On January 28, the FSA published a press release regarding the decision of the Upper Tribunal (Tax and Chancery Chamber) to uphold the FSA’s decision to fine Swift Trade Inc £8 million for market abuse, marking the largest fine ever issued against a firm for market manipulation.

The FSA first published its decision notice in August 2011, having identified that Swift Trade had engaged in market abuse prior to its dissolution under Canadian law in December 2010.  In response, Swift Trade referred the matter to the tribunal, and Peter Beck, the President and CEO, made an additional reference on the basis that he had been prejudicially identified in the decision notice.  However, the tribunal concluded that the FSA had provided sufficient proof that Swift Trade had engaged in deliberate, manipulative and deceptive layering activities which together constituted market abuse.  The tribunal also dismissed Mr Beck’s reference.