The Tax and Chancery Chamber Upper Tribunal has directed the FSA to censure former Dresdner Kleinwort trader Jason Geddis for market abuse.
The regulator had proposed to ban and fine Geddis after he secured the price of lead contracts on the London Metal Exchange at an abnormal and artificial level but the tribunal said a public censure was more appropriate.
The FSA says on November 21, 2008, Geddis rapidly built up a position in a particular lead contract and unwound the position in the course of the LME’s open outcry session at rapidly increasing prices. The FSA’s decision notice states that Geddis deliberately squeezed the market to secure substantial profits.
The tribunal ruled Geddis’ conduct fell below the proper standard of care but was not a failure of integrity and felt a censure was the appropriate action.
FSA acting director of enforcement and financial crime Tracey McDermott says: “We are committed to taking forward difficult and challenging market abuse cases. It is inevitable that, in some of those cases, the tribunal will reach a different conclusion as to the facts and the resulting sanction.”