Dangerous guessing game: Credit Suisse employees fined 210,000 for leaking inside

Worse than a shrinking bonus, it is only half of a shrinking bonus, and Nicholas Kyprios, head of Credit Suisse in London, the Credit Suisse Group (European), in addition to the bad luck,　　He was also fined 210,000 pounds by the UK Financial Services Authority (FSA) for improper market behaviour. March 13, the FSA announced the decision to punish Nicholas for failing to obtain Credit Suisse customer CNN operator Liberty Global Inc.　　(hereinafter referred to as "Liberty"), the relevant insider information is disclosed to two fund managers prior to the roadshow. "Although the FSA accepts that he has not attempted to disclose the message, its Nicholas behavior eventually leads to Cross-border," he said.　　The FSA said in a statement.　　Credit Suisse expressed regret, saying that "In addition to the FSA's punishment, we have an internal economic penalty for the employee". Approved for "cross-Wall" November 2009, Liberty agreed to buy a German cable company, Unitymedia GmbH (hereinafter "Unitymedia"), and plans to sell € 2.5 billion in bonds to raise funds for acquisitions, Partly used to redeem unitymedia unliquidated obligations.　　Credit Suisse was designated by Liberty as the chief Account manager for the issue of bonds. A few days later, Credit Suisse approved Nicholas cross-wall (wall crossing) to inform him of potential bond offerings, including a timetable and Liberty's plan to redeem all of its unliquidated obligations, in the hope that he will be able to advise on the market potential of the deal,　　and to assist project members to obtain feedback from 5 other pre-selected external investors. Cross-wall means that a company can legitimately inform a third party of insider information and is often used to balance interests between existing shareholders in mergers, acquisitions and other transactions.　　Third parties agree that after the wall, insider information can be obtained but cannot be traded or further spread. After crossing the wall, Nicholas received mail from Credit Suisse, prohibiting him from discussing relevant information with any outside company, and clearly stating that the information was inside information. Nicholas is designated as a market advocate for the bond offering, including the announcement of a bond offering to ensure that investors participate in the roadshow in London and Frankfurt.　　But he was not given permission to inform other outside investors about the issue before it was announced (except for 5 outside investors who had already obtained Liberty permission). On November 11, 2009, after sending a road show to potential investors, Nicholas called fund manager A, revealing the Bond's rating, despite claiming that he "had to cross the wall and be cautious". Nicholas soon revealed that the bond issuer's European identity and unliquidated obligations would be redeemed.Back, and hinted that fund manager a issuer was a German company and that bond issuance was related to mergers and acquisitions. "We can play a game and you'll be my guessing partner. Nicholas said to fund manager A and led him to say the right answer.　　On the same day, Nicholas a call to the German fund manager B, indicating the industry and German identity of the issuer.　　Nicholas argued that the conversation with fund manager A was just a joke, but the FSA said that although Nicholas was joking, the content and meaning of the conversation were obvious. Does not constitute an abuse of the market "his behavior is far below our expectations for senior market professionals.　　The FSA said in a statement. When Nicholas a call to two fund managers, he sits with other employees in an open area of the credit's trading floor, piling up 26 directly related reports, all of which may be heard by other employees or traders. and Rischingmingwen asked employees to protect customer information in telephone conversations, "especially on the trading floor." "While his actions ostensibly have no adverse effect on the market, fund manager A, fund manager B and Credit Suisse traders who can overhear the contents of the phone may use the information to trade or further disseminate the information."　　The FSA points out. When he called fund manager A, he had more than 16 million unliquidated obligations on his hands, and was likely to use the information obtained to Unitymedia the transaction. However, the FSA noted that while the Unitymedia was trading a total of € 1.97 billion in bonds traded on the market, the majority of unitymedia unliquidated obligations were traded on the Irish Stock Exchange's global stock exchange market and did not belong "Eligible investments" under the definition of "misuse of the market", the CDs associated with them are also not eligible investments and therefore do not apply to "abuse of the market".　　Still, Nicholas was fined 210,000 pounds. Andrew Osborne, former managing director of BofA Merrill Lynch, who was fined 350,000 pounds by the FSA one months ago, was less fortunate, Andrew told Greenlight Capital Inc. (hereinafter "Greenlight") Disclosed that punch will carry out the insider information of stock financing. Subsequently, Greenlight began selling its shares. Punch's share price fell 29.9%,greenlight a 5.8 million pound loss due to early selling.　　The FSA believes Andrew has been involved in serious market abuses as a result of leaking insider information. "An individual who is approved to cross the wall should be aware of the value of the information it receives." The FSA stressed in its statement that "people in the wall" should remain vigilant and make sure that they do not violate the wall-crossing procedures to leak information.