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Monday
Oct032011

Barclays operations suspended for not indicating short trades. 

As updated on Sept 30 2011 by Reuters, Barclays Capital has been ordered to suspend operations by the FSA in Japan for failing to indicate short selling trades. This is the first order of suspension issued by the regulator due to short selling violations since 2006. The incident demonstrates the keenness of the FSA in intensifying enforcement efforts in light of market volatility.

The order suspension will be valid for 10 business days, from Oct 11 to Oct 24. FSA concluded that Barclays had failed to indicate short orders when trading for overseas affiliates through the Osaka Exchange for an 18 month period. The regulator also reported that Barclays had violated rules by conducting such short trades at prices equal or below those latest published ones on the Osaka bourse immediately prior to such transactions. In the wake of events, Barclays stated that the infractions were caused by IT errors. But this failed to convince the FSA.

Readers can access the full story here.  

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