NASDAQ OMX Oslo ASA (the exchange) has issued a violation charge to Shepherd Energy AB (SKF) in the amount of NOK 150,000 for breach of the Market Conduct Rules (MCR).
During a short time span on 19 April 2012 SKF bought a small volume on the exchange while selling a larger volume OTC at the same price in the same financial product. Market Surveillance has conducted extensive investigations following the incident and the Disciplinary Committee has made a recommendation to the exchange. The recommendation from the Disciplinary Committee is attached.
The exchange has concluded that SKF has violated the prohibition against market manipulation set out in MCR section 5.1. cf Enclosure 1 by purchasing 1 MW on the ETS while a moment later selling 7 MW OTC at the same price. The purchase of 1 MW on the ETS “..gave, or were likely to give, false or misleading signals as to the demand for and price of a Listed Product,” cf. MCR section 5.1 cf Enclosure 1 Section 1.1 litra a.
It is not decisive for the application of the regulation on market manipulation whether misleading the market was done deliberately, as the exchange finds that SKF was aware of, or at least should have been aware of, that these actions gave or were likely to give false or misleading signals to other market participants.
For further information, please contact NASDAQ OMX Commodities:
Georg Aasen, President of NASDAQ OMX Oslo ASA, phone +47 6752 8076
Erik Korsvold, Head of Market Surveillance, NASDAQ OMX Oslo ASA, phone +47 6752 8067
Sara Aadnesen, Director Communication, phone +47 6752 8080/+47 9060 0759
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NASDAQ OMX Commodities is the brand name for the NASDAQ OMX Group’s worldwide suite of commodity related products and services. The NASDAQ OMX Commodities offerings include power, natural gas and carbon emission markets and clearing services. NASDAQ OMX Commodities is a trademark of the NASDAQ OMX Group, Inc.
NASDAQ OMX Commodities Europe is the trade name of NASDAQ OMX Oslo ASA which is authorized as a commodity derivatives exchange by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ OMX Commodities Europe are subject to clearing with NASDAQ OMX Clearing.
NASDAQ OMX Clearing is the trade name of NASDAQ OMX Stockholm AB which is authorized and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorized to conduct clearing operation in Norway by the Norwegian Ministry of Finance.
For more information, visit www.nasdaqomxcommodities.com.
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