The Stockholm Stock Exchange is hit for serious suspicions of crimes committed by people with connections to the stock exchange, with 100 million kroner in fines as a result. This after an in-depth investigation by the Financial Supervisory Authority, which directed stinging criticism at the business.
It reports, among other things Today’s industry.
The stock exchange still has time to appeal the case.
Four errors out of four possible
After the Financial Supervisory Authority reviewed four different company events and discovered deficiencies in connection with all four, the Stockholm Stock Exchange’s former employee is now suspected of insider trading.
But criticism is also directed at the stock exchange itself because it has not done what is expected of a financial operation of Stockholmsbörsen’s standing.
– In the investigated cases, the stock exchange has not carried out a closer analysis of the trade, even though there were circumstances that justified a more thorough examination. It shows clear shortcomings in the stock exchange’s trading supervision, says Daniel BarrDirector General of the Financial Supervisory Authority, in one press release.
Ica, Lundin Energy, Swedish Match…
It concerns events connected to the large Swedish companies Ica, Lundin Energy, Swedish Match and Haldex.
An actor who previously worked at the Stockholm Stock Exchange is said to have bought large amounts of shares in the companies in connection with the company events, just when the Stockholm Stock Exchange found out about the changes before others had the opportunity to act, according to the authority.
Exploiting prior information in this way is what is known as insider crime.
Worked on investigating insider crimes
What’s worse, the person must have worked with trade supervision.
In other words, his job was to make sure that no one violated the insider law.
Raid in September
Nasdaq, which is the company behind the Stockholm Stock Exchange, was very quiet about what it was about when the police raided the market department last September.
In the arrest petition it appears that the person who was arrested at the time, who was previously employed at the Stockholm Stock Exchange, had prior insight into the insider dealing surrounding the Icas scandal 2021.
Different numbers of people were involved in the four cases that were reviewed, but two of the people were involved in all four, according to the Financial Supervisory Authority.
Via acquaintances’ accounts
The crime is said to have been committed by accounts owned by relatives of those who appeared in the review making large purchases of the shares just before the news was to be presented.
In addition to the fact that the supervisory department themselves allegedly committed the crimes they were supposed to prevent, the Stockholm Stock Exchange has also committed other violations.
For example, on two occasions financial instruments must have been taken up for trading that were not approved, registered or published in the correct way, according to the Financial Supervisory Authority.
The Stockholm Stock Exchange denies
On Wednesday presented The Financial Supervisory Authority its investigation into how the Stockholm Stock Exchange has mismanaged its audit mission.
In connection with this, the Financial Supervisory Authority gives Stockholmsbörsen a remark, in addition to the fines mentioned.
News24 have contacted Adam Kostyal, CEO at the Stockholm Stock Exchange.
– Nasdaq Stockholm takes this issue and the Financial Supervisory Authority’s decision very seriously. One of our most important tasks is to maintain trust and integrity in our markets and we work continuously to develop our systems and processes to ensure this, he tells Nyheter24.
But the stock exchange objects that it had made any violations in terms of its obligations.
– While maintaining our position that we had adequate capabilities to identify insider trading, we will now analyze the decision in detail and assess the Financial Supervisory Authority’s interpretation of our obligations and what they mean for our continued work, says Adam Kostyál.
Will Nasdaq appeal the fine?
– It is too early to answer.
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