Tribunal directs FSA on Market Abuse Case

The FSA in UK on 7 Sept has reported on a rather interesting decision of the Upper Tribunal (Tax and Chancery Chamber) on a case of market abuse in the commodities market by a trader. The trader in concern is Jason Geddis, who according to the FSA report, was securing a price of Lead contracts at the London Stock Exchange at an artificial and abnormal level. On 21 Nov 2008, Mr. Geddis was rapidly building up a position on a particular Lead Contract and then unwound it quickly at the LSE open outcry session at rapidly increasing prices. FSA noted in its notice that Mr. Geddis was doing so to squeeze a substantial profit for his own firm.

However, the Tribunal determined that the undertaking only constituted a lack of proper care rather than a failure of integrity. It ruled that there was no premeditated plan for the undertaking. As a penalty, Mr. Geddis is given a public censure, which parts way from FSA’s proposal to fine and impose prohibition order.

The Tribunal decision can be found here.