Ex-C Suisse trader fined for manipulating UK bond market

Credit Suisse Canary Wharf

Regulators have fined a trader more than £660,000 ($1.09m) for deliberately manipulating the UK bond market.

The BBC reports that Mark Stevenson has also been banned from all city trading for life.

He tried, unsuccessfully, to sell a £1.2bn ($1.98bn) holding to the Bank of England at an artificially high price during its quantitative easing purchases (QE) on 10 October 2011.

The Financial Conduct Authority (FCA) said the former Credit Suisse trader's conduct was 'particularly egregious'.

'Stevenson's abuse took advantage of a policy designed to boost the economy with no regard for the potential consequences for other market participants and, ultimately, for UK tax payers', said Tracey McDermott, the FCA's director of enforcement.

By increasing his holding in the relevant gilt on the day the Bank was due to purchase more government bonds, the experienced trader knew he would artificially increase its price, the FCA said.

The unusual trading was reported within 40 minutes and the Bank decided not to buy that gilt as part of QE.

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