On Deutsche Bank have imposed the record penalty
the Operator of the Korean stock exchange has imposed on Deutsche Bank the penalty at a rate of 888 thousand dollars earlier financial regulators of South Korea recognised local division Deutsche Bank guilty of manipulation on a securities market and have suspended on half a year the bank right to spend trade at the expense of own means and operation with derivativami. The penalty became the largest in the history of South Korean stock market.
“ Deutsche has not executed the duty to inform the Korean stock exchange on the program auctions, having damaged trust of investors of ours reguljatornoj systems and having caused confusion (in the market. — daily) “ — representatives of a stock exchange have declared. There also have noticed that the bank with delay for one minute has notified a stock exchange on performance of the scale order for sale of actions. The penalty became largest of when - or imposed by the operator of a stock exchange. Earlier that was the penalty in 221 thousand dollars Imposed on Korean Kiwoom Securities in June, 2009. We will remind that the Commission on operations with actions and futures of South Korea (SFC) on Monday has informed that employees Deutsche Bank have entered arrangement to manipulate the share market through speculative positions in derivativah. The statement became a result of investigation against local division Deutsche Bank and its Hong Kong office which the Korean financial regulators conducted since November of last year.
It is a question of stock market falling on November, 11th, 2010, in day of the beginning of summit G20 in Seoul. Then last 10 minutes of the auctions when expired period of validity of options and futures for actions, foreign investors have placed orders for sale of securities for the sum 2,2 mlrd dollars the Most part of transactions has been spent through local division Deutsche Bank. As a result of a key index of South Korean stock market Kospi has fallen before the termination of the auctions to 48 points, having fallen following the results of day on 2,7 %. Market capitalisation of the companies entering into an index, was reduced on 26 mlrd dollars
SFC has come to a conclusion that actions Deutsche Bank were an intended collapse of the market. According to a regulator, employees of bank have earned on falling of an index about 40 million dollars the Commission has forbidden South Korean division Deutsche Bank to spend since April of this year trade in securities at the expense of own means and operation with derivativami. The interdiction will operate half a year. It became the most severe punishment in the history of the Korean stock market.
Besides, SFC has transferred in Office of Public Prosecutor the complaint to three employees of the Hong Kong division Deutche Bank, one worker of the Seoul office and one banker in nju - jorkskom company branch. Their names are not called. The commission also declared suspicions about dishonest game of head office of the company, however it has not found proofs of it.
Deutsche Bank in an official statement has declared that he regrets for the decision of the exchange operator, but “ respects the decision to impose such punishment “.