Credit Suisse fined AUD170,000 by AISC
Credit Suisse is to pay a AUD170,000 ($129,000) fine to the Australian Securities and Investments Commission (ASIC) after the bank's clients were allowed to place almost 10,000 orders in the options market without necessary limits on prices. The transactions resulting from the orders were cancelled by the ASX within 45 minutes, but Markets Disciplinary Panel concluded that the mishap had the potential to undermine the integrity of the market.

Investment bank Credit Suisse has copped a $170,000 fine from the market watchdog after its clients were able to place almost 10,000 orders in the options market without the appropriate limits on prices in place.

The problem came to light in April last year when a series of orders were mistakenly placed by a Credit Suisse client.

ASIC noted that "underlying deficiencies had existed for an unacceptable period of time". Credit: Jim Rice

"As a result, a number of transactions took place at prices that were 96 per cent below the extreme trade range reference price for those products. The orders were cancelled soon after entry.

Those transactions were cancelled by the ASX within 45 minutes but the Markets Disciplinary Panel infringement notice noted the absence of appropriate filters that led the orders being place has "the potential to interfere with the efficiency and integrity of the market".