Wed, Jul 29, 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. Bridgewater turns bearish on China[more]

    Komfie Manalo, Opalesque Asia: The world’s biggest hedge fund Bridgewater Associates and one of the most vocal of China’s potential is now turning its back against the world’s second largest economy as it joins a growing list of high-profile investors who are challenging China’s potentials.

  2. Launches - Ex-Brevan Howard star Rokos builds team for new fund, Former Och-Ziff manager’s firm starts health care hedge fund, Industry veterans launch commodity investment firm Aron Capital Management, Nikko Asset Management launches two UCITS funds, Capital Group plans to debut Asian investor targeted fund[more]

    Ex-Brevan Howard star Rokos builds team for new fund From WSJ.com: Chris Rokos, a former star trader at Brevan Howard Asset Management LLP, has hired an economist from Nomura to join the team he’s assembling for his much anticipated hedge fund launch. Mr. Rokos, whose firm is due to b

  3. Institutions - Pension fund dismisses Texas consultant, Rhode Island pension fund gets 2.2% investment return, far below assumed rate of 7.5%, New Jersey pension investments see a drop-off in returns[more]

    Pension fund dismisses Texas consultant From Sandiegouniontribute.com: The county retirement board on Thursday terminated the Texas consultant who was given the reins of the $10 billion pension fund, and whose investment picks left many employees and retirees feeling taken for a ride.

  4. SWFs - Sovereign wealth funds paid around $14 billion in fees[more]

    From SWFinstitute.org: When it comes to the financial sector, asset management is one of the most profitable industries in the world. The Boston Consulting Group put out a 2014 figure saying there is US$ 74 trillion worth of professionally-managed assets. One of the fastest growing institutional inv

  5. Investing - Carlyle teams with TCW in push for ordinary investors[more]

    From Bloomberg.com: Carlyle Group LP isn’t backing down from its goal of offering alternative strategies to the masses, despite early setbacks. The Washington-based firm is teaming up with TCW Group, which is majority owned by Carlyle funds, to offer three vehicles that give ordinary investors acces

 

banner