Home News SWX fines Societe Generale for trading breach

SWX fines Societe Generale for trading breach

Published on 02/05/2008

2 May 2008

ZURICH – The Swiss stock exchange said Friday it has fined French bank Societe Generale for violating trading rules two years ago.

The Zurich-based exchange – known as SWX – said it imposed a CHF 30,000 fine on Societe Generale for allowing four authorised traders to make transactions under other people’s names.

A fifth person, who was not authorised to trade on the SWX, also carried out transactions, it said.

“This has happened before with other banks,” SWX spokesman Werner Vogt said.

The French bank hit the headlines earlier this year after it become embroiled in one of the largest securities scandals in history.

One of the bank’s former employees, Jerome Kerviel, faces charges ranging from forgery to unauthorised computer use linked to a multibillion euro (dollar) trading loss.

“This story has nothing to do with Kerviel,” Vogt said.

He said Societe Generale was warned about the rule breach at the time, but failed to act on the reprimand.

“That tends to increase the fine,” Vogt said.

Societe Generale has also been ordered to pay CHF 10,000 in costs.

The maximum fine possible for trading breaches on the SWX is CHF 200,000 or a suspension of the trader’s license.

Societe Generale spokeswoman Laura Schalk said the bank is cooperating with the SWX exchange and has implemented the measures required of it.

[AP / Expatica]