ASIC: Credit Suisse Equities paid a $74,000 penalty 

credit-suisse

Credit Suisse Equities (Australia) Limited (“Credit Suisse”) has paid a penalty of $74,000 to comply with an infringement notice given to it by the Markets Disciplinary Panel (“MDP”).

The MDP had reasonable grounds to believe that Credit Suisse contravened subsection 798H(1) of the Corporations Act 2001 by reason of contravening Rule 5.6.1 of the ASIC Market Integrity Rules (ASX Market) 2010.

This Rule provides:

A Trading Participant which uses its system for Automated Order Processing must at all times:

(a)   have appropriate automated filters, in relation to Automated Order Processing; and

(b)   Ensure that such use does not interfere with:

(i)     The efficiency and integrity of the Market;

(ii)   The proper functioning of any Trading Platform; or

(iii) The efficiency and integrity of any Crossing System operated by the Trading Participant.

Credit Suisse used its Automated Order Processing system to submit orders through the ASX Trading Platform on a particular day, which caused price increases of 42.34% and 19.91% respectively in two classes of illiquid shares.

The MDP had reasonable grounds to believe that Credit Suisse did not have in place appropriate automated price filters in its system to ensure that use of the system did not interfere with efficiency and integrity of the Market.

Source: ASIC

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