The Securities and Futures Commission (SFC) in Hong Kong has reprimanded and fined Credit Suisse Securities (Hong Kong) HK$2.1m ($270.8m) for failing to prevent electronic trading anomalies.

The regulator said that the Credit Suisse unit submitted 16,935 erroneous market making quotes. This led to the execution of 8,042 stock option trades at the wrong prices.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

The issue was the result of a logic error in the symbol mapping programme, which the unit’s internal controls and regular tests failed to flag.

The failures in its electronic trading system led to regulatory violations.

“In deciding the sanction, the SFC took into account all relevant circumstances, including the prompt remedial actions taken by CSSHK following the incident and CSSHK’s cooperation with the SFC in resolving the SFC’s concerns,” the watchdog said.

Other legal issues

Credit Suisse has been embroiled in several legal issues in recent years.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Last year, the bank was fined by the SFC for disclosure failures related to certain research reports on securities listed in Hong Kong.

The breaches spanned for a decade and was said to be caused by an IT problem.

In 2018, Credit Suisse was fined $10m for fraudulent trading activities. It is currently also facing probe in Belgium over aiding tax evasion.

In 2018, the bank was fined around $77m for corrupt hiring practices in Asia.

Credit Suisse admitted the misconduct, saying that the referral hires were less qualified compared to other staff at the same level, vetted less strictly, and were provided several benefits to help the bank win banking business.