Credit Suisse pays $95,000 penalty
Credit Suisse Equities Australia has paid a penalty of $95,000 for not having in place adequate resources for its Automated Order Processing (AOP) system to account for corporate actions, according to the Australian Securities and Investments Commission (ASIC).
ASIC said this resulted in the interference with the efficiency and integrity of the market, resulting in the market failing to be fair and orderly for a particular stock.
Credit Suisse entered an order on behalf of the client to sell shares in Hastie Group, which resulted in a 48 per cent decrease in price from a ‘reconstruction' (share consolidation) which occurred on the day.
The order did not generate any price-based AOP alerts, despite the deviation from the reconstruction-adjusted last traded price.
The regulator said Credit Suisse became aware of the executed part of the order when contacted by ASIC an hour and a half later, after which the firm requested cancellation of the executed part of the order.
However, the cancellation was denied due to the length of time between execution and request for cancellation, which was three hours.
The ASIC-controlled Market Disciplinary Panel decided to issue Credit Suisse with an infringement notice specifying a total penalty of $95,000.
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