UK: England and Wales: FSA wins market abuse case in Court of Appeal

The Court of Appeal gave judgment yesterday in Winterflood Securities Ltd & Ors v The Financial Services Authority [2010] EWCA Civ 423, an important decision concerning market abuse under Section 118 of the Financial Services and Markets Act (2000).

The court held that an actuating purpose - defined in the FSA Handbook glossary as "a purpose which motivates or incites a person to act" - was not required in respect of two examples of market abuse (price positioning and artificial transactions) in the Code of Market Conduct.

The FSA has welcomed the decision: see its announcement here. Background facts for the case are available here (pdf).