The Financial Conduct Authority (the “FCA”) has imposed a financial penalty of £60,090 on an experienced bond trader during his employment at Bank of America Merrill Lynch International (BAML) for engaging in market abuse.

Following an investigation the FCA found out that the bond trader carried out a strategy of entering quotes on the BrokerTec inter-dealer trading platform in relation to six Dutch State Loans (DSLs) that were designed to induce, and had the effect of inducing, other market participants who were tracking quotes to raise or lower their quotes so that he could benefit from those price movements.

Market participants were affected by the bond trader’s trading, because his trading strategy manipulated their prices and led to them either buying or selling DSLs at worse prices than they could otherwise have done. His behaviour gave a false and misleading impression as to the price and the supply or demand of the DSLs. The FCA has therefore imposed a £60,090 financial penalty.

Read the FCA’s Press Release