Stockholm Stock Exchange’s disciplinary committee fines Erik Penser Fondkommission

Erik Penser Fondkommission (EPF) has contravened the Stockholm Stock Exchange’s rules by buying and selling AstraZeneca shares on its own account in a manner that resulted in EPF conducting business with itself. In a large number of cases, this practice also influenced the price of the shares. Accordingly, the Stockholm Stock Exchange’s Disciplinary Committee has ruled that EPF must pay a fine of SEK 300,000.

EPF is a member of the Stockholm Stock Exchange. According to the Stockholm Stock Exchange’s rules for Exchange members, members must place orders in the trading system in such a manner that the orders do not intentionally result in an internal transaction. In this context, an internal transaction is defined as when the buyer and the seller are the same natural or legal entity. Nor may the member place an order or implement transactions in a manner intended to improperly influence the price of securities.

It is apparent from the inquiry conducted by the Stockholm Stock Exchange that on more than 1,400 occasions during the period January to mid-September 2006, an EPF employee has purchased and sold AstraZeneca shares on EPF’s own account in a manner that resulted in EPF intentionally conducting business with itself. On more than 1,000 occasions, the price of the share was also affected, due to the latest price paid for the share having been updated as a result of the internal transactions.

The Disciplinary Committee has concluded that these practices constituted a serious breach of the Stockholm Stock Exchange’s rules and regulations. The breaches occurred over a protracted period and pertained to a large number of transactions. Accordingly, the Stockholm Stock Exchange’s Disciplinary Committee orders the company to pay a fine of SEK 300,000. The broker responsible for the transactions is no longer employed by EPF and was also issued a warning by SwedSec’s Disciplinary Committee.