The FSA has censured trader Jason Geddis for market abuse.
The Tax and Chancery Chamber Upper Tribunal has directed the regulator to censure Geddis for securing the price of Lead contracts on the London Metal Exchange at an abnormal and artificial level.
The FSA had proposed to prohibit and fine Geddis but the Tribunal said a public censure was more appropriate.
Geddis was a trader at Dresdner Kleinwort Limited and on the morning of November 21, 2008, he 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.
In the FSA’s decision notice, it stated Geddis deliberately squeezed the market to secure substantial profits for his firm and proposed to fine and impose a prohibition order.
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 have made it clear that 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.”