SFC reprimands and fines BNP Paribas Securities (Asia) Limited $11 million
The Securities and Futures Commission (SFC) has reprimanded and fined BNP Paribas Securities (Asia) Limited (BNP) a total of $11 million for its failures to report its direct business transactions (cross trades) to The Stock Exchange of Hong Kong Limited (SEHK) over a 10-year period.
The SFC’s investigation found that BNP failed to report a total of 4,443 pairs of cross trades to the SEHK involving a total of over $6 billion worth of shares conducted by BNP from December 2002 to January 2013. BNP’s reporting failures breached the trading requirements of the SEHK and the Code of Conduct .
As a licensed corporation, BNP also failed to employ effectively resources and procedures needed for the proper performance of its business, including the failure to provide the dealers responsible for the reporting at BNP with sufficient resources to enable them to discharge their reporting duties. The SFC considers BNP’s failures are particularly serious as it lasted for an extended period of time and involved a large number of trades.
“This case demonstrates that reporting failures cannot be taken lightly. This is because market transparency and displaying accurate information to the investing public are essential not only to aid informed investment decisions but also to maintain a fair and orderly market.” the SFC’s Executive Director of Enforcement, Mr Mark Steward said.
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