Ruling Disciplinary Committee | DSI 2001-01

DSI Disciplinary Committee ruling dated 2001.

The DSI Disciplinary Committee ruled in a case against a Senior Securities Trader. The complaint concerned the deliberate issuing of apparently attractive bid prices for certificates of share X, while the defendant knew that a share split had not yet been implemented in the certificates. As a result, counterparties were misled and the defendant made very high profits for years virtually risk-free. The committee ruled that the defendant was guilty of unfair market conduct, seriously damaged the confidence of the investing public and abused its position.

Disciplinary Committee ruling

The Disciplinary Committee found the defendant guilty of the offenses and determined that these facts would warrant expulsion if he were still registered. The decision is not published naming the defendant, employer or fund.

Articles DSI Code of Conduct applicable: 7.1.1, 7.1.2, 7.2.1 and 7.2.2

Linkage to DSI Core Principles:

• Core principle 10: Act honestly
  Knowingly misleading market participants and taking advantage of information advantage is contrary to honesty and undermines trust in the financial sector.
• Core principle 1: Take responsibility.
  The defendant should have taken responsibility for acting with integrity and preventing wrongdoing.
• Core principle 7: Be clear about interests
  By not being transparent about the true value of the certificates and its own position, the defendant has increased the risk of conflict of interest.