According to the official announcement Urra and Gonzalez placed small orders that they planned to execute on the other side of the order books around the same period.
The FCA stated that:
The FCA finds that the individuals were dishonest and repeated this pattern of intentional and deliberate market manipulation on several occasions.
In the FCA’s view, the fines and the bans that it has decided to impose reflect the serious nature of the breaches set out in the Decision Notices and should act as a deterrent to other market participants.
FCA’s announcement further detailed that the former Mizuho traders have decided to pursue their case before the Upper Tribunal to decide whether the uphold FCA’s decision, change the size of the penalty or withdraw it altogether.
The regulator sent a warning letter to retail brokers licensed in the UK last week, warning them against scams and other bad practices. CFDs, which can result in substantial customer losses, are high-risk products.
LeapRate first published the article FCA bans three former Mizuho bond traders for market abuse