OMX Nordic Exchange Stockholm hands over investigations regarding Carnegie to the Disciplinary Committee
OMX Nordic Exchange Stockholm has today decided to hand over its investigations regarding Carnegie to the exchange’s Disciplinary Committee. The investigations concern both Carnegie Investment Bank AB (the Bank) as a member of the exchange and D.Carnegie & Co AB (the Company) as a listed company. The exchange demands substantial fines in both cases.
The surveillance department at OMX Nordic Exchange Stockholm has in the beginning of 2007 2007 found that the Bank on several occasions had entered into trades in a number of derivatives that affected the price setting in a way that appeared beneficial for the Bank’s trading portfolio. After the exchange had notified the Bank about the situation and initiated an investigation, the Bank also conducted an investigation on its own. In connection to this, the Bank has, on two occasions, depreciated its trading result by a total of 630 million SEK.
The exchange has now decided to hand over its investigations regarding both the Bank and the Company to the exchange’s Disciplinary Committee. Regarding the Bank, the matter concerns the Bank having entered orders and executed trades on the derivatives markets in a principal capacity, in order to either affect the valuation of the Bank’s proprietary trading positions or to conceal overestimations in the portfolio. Regarding the Company, the matter concerns the Company having disclosed misstatements to the market about its result in the annual report for the year 2005 and 2006, and in the quarterly report in the first quarter 2007.
The exchange finds Carnegie’s infringements very serious and demands that the Disciplinary Committee decide on substantial fines for the Bank and the Company.