Danske Bank has been reported to the police by the Fsa for not having done enough to avoid manipulation on the financial market.
It informs the Fsa in a press release.
the Supervision has determined a substantial number of opposite orders, which Danske Bank has communicated and executed on behalf of customers.
It has resulted in customers traded with itself as a counterparty in the market, thus the trades did not lead to a change in ownership.
the Phenomenon is also known as ‘wash trades’.
– the Fsa considers that it can constitute market manipulation, when a company or a person acting with themselves on a marketplace.
– Is there a need to net opposite orders out against each other, can this be done outside the market.
– There are, therefore, seen not as the starting point of a legitimate reason for such trades, the writing of the Fsa.
According to the monitoring found the trades take place in period 12. august 2016 to 22. February 2019.
Since the Danish Bank was made aware of the shortcomings, the bank has launched measures that aim to rectify the problems.
According to Philippe Vollot, who is responsible for the Danske Bank complies with the applicable rules, the bank takes the matter ‘very seriously’.
– We have not had adequate market surveillance, and we have therefore, since 2019 invested significantly in strengthening systems and controls in close dialogue with the Fsa, says Philippe Vollot in a written comment.
the Danske Bank explains the opposing trades with flawed procedures. Therefore, the bank has introduced new controls to prevent something similar happening again.
– each of The trades had a real bid or salgsinteresse, and we have not found any evidence of intentional acts, or that customers or the market participants have suffered damage, says Philippe Vollot.
the Danske Bank shall cooperate fully with the authorities, but do not want to comment on the report, so long as the police investigate the case.
