The Board of Nasdaq Oslo ASA, on 17 December 2015, came to the following conclusion in the case against J. Aron & Company.

A trader acting on behalf of J Aron & Company inadvertently entered a sell order in the exchange order book, instead of a buy order, which lowered the best asking price of ENOMSEP-14 on 19 August 2014. While offering the sell order the trader bought a larger quantity in the market outside the order book paying the same price as the price of its sell order. The trader deleted the sell order four seconds after entering the order. The case findings indicate that the sell order misled the counterparty, who said that it agreed to lower its sell price outside the order book only after having noticed a new market valuation in the exchange order book. The Board finds that the sell order in question “gave, or was likely to give, false or misleading signals as to the supply for and price of a Listed Product,” cf. Market Conduct Rules section 5.1 cf. Enclosure 1 Section 1.1 letter a. Please see the Joint Appendix 6 - Market Conduct Rules http://www.nasdaqomx.com/commodities/Marketaccess/legalframework

While no evidence of intention to mislead the market has been found and it is accepted that the trader did not act deliberately, it is not decisive for the application of this regulation whether misleading the market was done deliberately. The Board finds that the trader at least should have been aware that these actions gave or were likely to give false or misleading signals to other market participants and, in addition to having deleted the erroneous sell order, the trader should also have informed the Broker and in addition Nasdaq Oslo ASA Market Surveillance of the error. The Board finds that the trader showed negligence when giving misleading signals through placing the order in the opposite direction of his true intentions while the trader conducted negotiations in the market outside the order book at the same time. On this basis the Board finds that this behaviour constitutes a breach of the Market Conduct Rules section 5.1. cf. Enclosure 1, and with reference to Section 8.1.3. in the Market Conduct Rules J. Aron & Company is given a written warning.

 

For further information, please contact Nasdaq Commodities:

Erik Korsvold, Head of Market Surveillance, Nasdaq Oslo ASA, phone +47 6752 8067 surveillance.commodities@nasdaq.com

 

Media contact:

Sara Aadnesen, Director Corporate Communications, phone +47 9060 0759 sara.aadnesen@nasdaq.com

 

About Nasdaq

Nasdaq (Nasdaq: NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, Nasdaq enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today’s global capital markets.  As the creator of the world’s first electronic stock market, its technology powers more than 70 marketplaces in 50 countries, and 1 in 10 of the world's securities transactions. Nasdaq is home to more than 3,500 listed companies with a market value of over $8.8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaq.com/ambition or www.nasdaqomx.com.

 

About Nasdaq Commodities

Nasdaq Commodities is the brand name for the worldwide suite of commodity related products and services offered by Nasdaq. The Nasdaq Commodities offerings include power, natural gas and carbon emission markets, tanker and dry cargo freight, fuel oil, seafood derivatives, iron ore, electricity certificates and clearing services.


NASDAQ Oslo ASA is the commodity derivatives exchange authorized by the Norwegian Ministry of Finance and supervised by the Norwegian Financial Supervisory Authority. All trades with NASDAQ Oslo ASA are subject to clearing with Nasdaq Clearing AB.

About Nasdaq Clearing

Nasdaq Clearing is the trade name of NASDAQ Clearing AB which is authorised and supervised as a multi-asset clearinghouse by the Swedish Financial Supervisory Authority in Sweden as well as authorised to conduct clearing operations in Norway by the Norwegian Ministry of Finance.


For more information, visit www.nasdaqomx.com/commodities

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