Tue, Apr 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

UK financial watchdog starts targeting high frequency traders

Thursday, August 01, 2013

Benedicte Gravrand, Opalesque Geneva:

The UK’s Financial Conduct Authority (FCA) last week fined US-based high frequency trader Michael Coscia $903,176 (£597,993) for deliberate manipulation of commodities markets. This is the first time the FCA has taken enforcement action against a high frequency trader.

According to the FCA’s announcement, Coscia used an algorithmic programme of his own design to instigate an abusive trading strategy known as "layering" during a period of six weeks in September and October 2011. He placed thousands of false orders for Brent Crude, Gas Oil and Western Texas Intermediate (WTI) futures on the ICE Futures Europe exchange (ICE) in the UK. As this generated price movements, he made $279,920 in profits by trading at the expense of other investors, especially other high frequency traders or traders using algorithmic and/or automated systems.

Coscia is not a member of ICE, nor is he an FCA Approved Person. He traded through from the US through a Direct Market Access (DMA) provider.

He agreed to settle early and received a 30% discount on the fine, which otherwise would have been more than $1.15 million (£764K).

In the US, the Commodities and Futures Trading Commission (CFTC) and the Chicago Mercantile Exchange (CME) also fined Coscia for similar manipulations on US markets, on the same day. ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Hedge funds looking to continue their rally in Q2[more]

    Komfie Manalo, Opalesque Asia: Hedge funds finished the first quarter on a strong note and are looking to continue the rally in the second quarter, said Lyxor Asset Management in its Weekly Brief. The Lyxor Hedge Fund Index is up 0.4% over the week

  4. Hedge funds down -0.17% in March (+1.23%YTD)[more]

    Bailey McCann, Opalesque New York: The hedge fund industry produced an aggregate return of –0.17% in March to end Q1 2015 up 1.23%, compared to the S&P 500 which increased 0.96%, according to the latest data from eVestment. Hedge fund performance returns were mixed in March amid increased equity

  5. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

 

banner