HONG KONG, Sept. 9 -- Hong Kong's Securities and Futures Commission (SFC) banned a former managing director and senior trader at Merrill Lynch (Asia Pacific) Limited and Merrill Lynch Futures (Hong Kong) Limited (collectively Merrill Lynch), from re-entering the industry for life, said the regulatory authority on Thursday.
- y R8 m9 S" J: R9 p6 ? The SFC said the disciplinary action follows an investigation into mis-marking activities in a trading book in exotics options ( the Book) at Merrill Lynch.
4 F$ I! V7 `- E7 E The authority's investigation found that during the period from December 2007 to December 2008, Merrill Lynch's managing director and senior trader Jugurtha Harchaoui had mis-marked the Book by manipulating the volatility marks in the valuation model, and accessed the computer system without authority to alter pricing parameters on various occasions.
- m& S$ J: Z, X. p0 k The SFC further found that Harchaoui sought to cover up his action by instructing a junior trader in his team to use a manipulated computer programme to mark the Book on a daily basis during his sick leave. If the manipulated programme had not been uncovered, the mark-up in the Book would have been linearly amortised over the duration of his two-month sick leave, said the SFC.* u B ~) G0 [! t7 ], x" M
Harchaoui's mis-marking activities resulted in the value of the Book being inflated by approximately 25 million U.S. dollars and caused the actual loss in the Book to be wrongly reported to Merrill Lynch.
( J& J5 A7 I) o. V The SFC earlier took action against Merrill Lynch in relation to regulatory issues arising out of the same incident. |
发表于 2012-8-16 08:12:37
