Morgan Stanley International Plc (NYSE: MS) has been given a reprimand and a fine over events that took place last November in Stockholm stock exchange. According to di.se, Morgan Stanley made thousands of trades within minutes of market open on client’s behalf with shares of steel company SSAB (SSAB A, SSAB B) and engineering firm Atlas Copco (ATCO A, ATCO B). The trades triggered an intraday auction as by the volatility rules.
Some speculators were in time to take advantage of the trades, which were explained to have resulted from a client coding error. Many of the submitted orders were such, where the buyer and the seller were the same legal person. The exchange immediately tried to contact the bank’s broker but was unable to do so. These both are violations of the Nasdaq OMX member rules. This is the second incident involving a punishment this year, with Pareto Öhman receiving a fine earlier on.
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