Ted Kaufman - United States Senator for Delaware

Kaufman Comments on $6.4 Million Fine by Britain’s Financial Services Authority of Three Firms for Failing to Provide Timely Transaction Reports

Fines Mark First Time High Frequency Trading Firm Reprimanded by FSA

April 8, 2010

WILMINGTON, Del. — Sen. Ted Kaufman (D-Del.) released the following statement today after the United Kingdom’s Financial Services Authority fined three firms a total of £4.2 million ($6.4 million) for failing to provide accurate and timely transaction reports to the FSA. The FSA said the three firms — the bank Credit Suisse, the electronic market maker Getco Europe Ltd., and agency broker Instinet Europe — had committed “multiple breaches that resulted in failure to provide transaction reports promptly and correctly to the FSA.” Firms are required to submit accurate data for all reportable transactions by each day’s close of business so that the FSA can investigate any suspected market abuse, ranging from insider trading to market manipulation. The £1.4 million ($2.1 million) penalty for Getco is the first time the FSA has fined a high frequency trader.
Alexander Justham, the director of markets at the FSA, said: “Firms must meet their obligation to provide accurate and timely data. Without quality data we cannot properly detect and investigate market abuse, identify market wide risks or have a comprehensive understanding of the activities of each firm.”  He went on to say: “The standard of regulatory reporting by these firms fell far short of what the FSA expects and requires.”
“The FSA has sent a strong no-nonsense message: Regulators must insist on receiving the data and transparency they need to detect abuses,” said Kaufman.  “Here in the U.S., I’m confident the Securities and Exchange Commission and FINRA will soon adopt the same attitude.”


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