UK: FCA takes enforcement action against high frequency trader

The Financial Conduct Authority has, for the first time, taken enforcement action against a high frequency trader who engaged in market abuse. Using an algorithmic programme he had created, the trader placed thousands of false orders for Brent Crude, Gas Oil and Western Texas Intermediate futures from the US on the ICE Futures Europe exchange (ICE) in the UK. The FCA's decision notice is available here (pdf).

Action was also taken against the trader in the USA by the Commodity Futures Trading Commission in the first case to be brought in respect of the prohibition against disruptive practices introduced by section 747 of the Dodd-Frank Wall Street Reform and Consumer Protection Act: see here.