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SIX Exchange Regulation has established that participant Flow Traders B.V., Amsterdam, violated SIX Swiss Exchange’s and Scoach Switzerland’s rules on the registration of traders and the use of trader identification numbers. At the proposal of SIX Exchange Regulation, the Sanction Commission of SIX Swiss Exchange respectively Scoach Switzerland imposed a fine against Flow Traders B.V., Amsterdam, in the amount of CHF 20,000.
SIX Swiss Exchange and Scoach Switzerland participants must register all persons who have access to the exchange system in their capacity as traders with SIX Swiss Exchange respectively Scoach Switzerland. SIX Swiss Exchange respectively Scoach Switzerland allocate a personal identification number to each registered trader. The participant must ensure that the personal identification numbers of its registered traders are not misused. If a provisionally registered trader has not acquired a trader licence within a year, then SIX Swiss Exchange / Scoach Switzerland will cancel the provisional registration. In such cases, the participant must block the trader in question's access to the SIX Swiss Exchange respectively Scoach Switzerland exchange platforms with immediate effect.
For a period of at least two weeks in 2008, a Flow Traders B.V., Amsterdam, employee who was not registered as a trader used the personal identification number of A, a trader registered on SIX Swiss Exchange and Scoach Switzerland. Furthermore, the prices for a listed security that was not traded by trader A were set under the latter's trader ID, even though the Surveillance & Enforcement department had previously informed the participant by telephone that this was not permitted. In addition, the personal identification number of B, another registered trader, was also used by the four members of his team. None of these employees had their own trader ID from SIX Swiss Exchange or Scoach Switzerland at that time. Provisional trader registrations for three of the four had been cancelled because they had not acquired a trader licence within a year.
The fourth employee became a registered trader on SIX Swiss Exchange and Scoach Switzerland only at a later date. Flow Traders B.V., Amsterdam, therefore violated stock exchange rules on the registration of traders and the use of trader identification numbers.
Surveillance & Enforcement enforces stock-market rules and regulations. If a participant violates these rules, the Sanction Commission of SIX Swiss Exchange respectively Scoach Switzerland may - at the proposal of SIX Exchange Regulation - impose a sanction, taking into account the gravity of the offence and the degree of fault. Taking all of the circumstances in the present case into account, the SIX Swiss Exchange’s respectively Scoach Switzerland’s Sanction Commission imposed a fine in the amount of CHF 20’000. This sanction is published in accordance with the SIX Swiss Exchange / Scoach Switzerland Rules of Procedure. Furthermore, the costs of the proceedings of CHF 8’500 have been charged to Flow Traders B.V., Amsterdam.
Earlier sanction decisions in connection with financial reporting can be found at: http://www.six-exchange-regulation.com/enforcement/participants/sanction_decisions/sanction_commission_en.html
