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Court of Appeal upholds £8m FCA Swift Trade market abuse fine

The Court of Appeal has ruled in favour of the FCA that Canadian trading platform Swift Trade was guilty of market abuse.

In 2011 the then FSA fined Swift Trade £8m for market abuse. It said Swift Trade had engaged in a form of price manipulation known as ‘layering’.

Swift Trade referred the decision to the Upper Tribunal, which ruled in favour of the FCA in January 2013. Swift Trade subsequently took the case to the Court of Appeal.

The Court today upheld the FCA fine and the ruling of the Upper Tribunal because it agreed that the layering activity related to qualifying investments under the Financial Services and Markets Act 2000.

Between January 1, 2007 and January 4, 2008, Swift Trade deliberately filed false orders to the London Stock Exchange in order to manipulate the price of individual securities.

It then profited by buying or selling those securities at the new manipulated price, netting the firm in excess of £1.75m, according to the regulator. 

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