Trader banned and fined for rigging gilt in QE operations
"A former Credit Suisse bond trader has been banned from the industry and fined £662,700 for deliberately manipulating a UK government bond.
Mark Stevenson, who had nearly 30 years' experience, intended to sell his £1.2bn holding to the Bank of England for an artificially high price during quantitative easing (QE) operations, the Financial Conduct Authority said.
The regulator said his unusual trading was reported within 40 minutes on October 10, 2011 and the Bank took the "unprecedented" decision not to buy that gilt as part of its bond-buying programme to stimulate the economy.
During QE the Bank bought government bonds from key firms in an auction between 14:15 and 14:45 on a specified day. It ranked the offers against the mid-market price and bought gilts, starting with the cheapest, until the target purchase size was met for that day. "
Trader banned and fined for rigging gilt in QE operations - Telegraph
"A former Credit Suisse bond trader has been banned from the industry and fined £662,700 for deliberately manipulating a UK government bond.
Mark Stevenson, who had nearly 30 years' experience, intended to sell his £1.2bn holding to the Bank of England for an artificially high price during quantitative easing (QE) operations, the Financial Conduct Authority said.
The regulator said his unusual trading was reported within 40 minutes on October 10, 2011 and the Bank took the "unprecedented" decision not to buy that gilt as part of its bond-buying programme to stimulate the economy.
During QE the Bank bought government bonds from key firms in an auction between 14:15 and 14:45 on a specified day. It ranked the offers against the mid-market price and bought gilts, starting with the cheapest, until the target purchase size was met for that day. "
Trader banned and fined for rigging gilt in QE operations - Telegraph
Comment