Credit Suisse hit with $6.5m US fine for supervisory lapses

Credit Suisse Securities (USA) did not establish a supervisory system reasonably designed to monitor for potential trading violations between 2010 and 2014. (Reuters)
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Updated 24 December 2019

Credit Suisse hit with $6.5m US fine for supervisory lapses

  • From 2011 to 2017, Credit Suisse violated the US market access rule
  • In settling the matter, Credit Suisse neither admitted nor denied the charges

VIENNA: The US Financial Industry Regulatory Authority (FINRA) and major exchanges have fined Credit Suisse’s US-based securities business $6.5 million for supervisory failings, FINRA said late on Monday.
FINRA, the securities industry self-regulator, and the exchanges found that Credit Suisse Securities (USA) did not establish a supervisory system reasonably designed to monitor for potential trading violations, such as spoofing and layering, for clients it had offered direct market access to numerous exchanges between 2010 and 2014.
The exchanges backing the fine are Cboe Global Markets, the Nasdaq Stock Market LLC, the New York Stock Exchange, and their affiliated exchanges.
“In addition, Credit Suisse violated numerous provisions of the market access rule, which requires broker-dealers that provide their customers access to an exchange or an alternative trading system to reasonably manage the financial and regulatory risks of providing such access,” FINRA said in a statement.
From 2011 to 2017, Credit Suisse violated the market access rule’s provisions related to the prevention of erroneous orders, the setting of credit limits and the firm’s annual review of the effectiveness of its market access controls and supervisory procedures, the statement said.
In settling the matter, Credit Suisse neither admitted nor denied the charges, the statement added.
Credit Suisse did not immediately reply to a request for comment.


At Davos, innovative products point to a sustainable future

Updated 24 January 2020

At Davos, innovative products point to a sustainable future

  • A single tree that to bear 40 different types of apple

DAVOS: The World Economic Forum is not all about the fourth industrial revolution or the rise of AI.

You can also find all manner of strange and intriguing products on display from biodegradable plastic made from algae to wallpaper made from recycled corn husks.

One stand titled “How do you design a tree?” is part of a conservation effort where a single tree is designed to bear 40 different types of apple.

Another stand displays colored seaweed on a rack, showing how clothes can be dyed in a sustainable, non-chemically corrosive manner.

Propped along a large wall is Fernando Laposse’s wallpaper made of variations of purple corn husks that are reinforced with recycled cardboard and cork to create wallpaper and furniture. The husks come from corn that needs very little water and can be grown in the desert, which makes it all the more sustainable.

“This initiative helps the local economy as it brings in jobs and a resurgence of crafts and food traditions while also ensuring sustainability,” Laposse said.

Another display shows a machine that extracts pellets from a mixture of algae and starch and is used to create a thread that is the base of 3D printing. These sustainable, biodegradable plastics made from algae are being experimented with in different regions.

With the rise of deep fakes — a branch of synthetic media in which a person in an existing image or video is replaced with someone else’s likeness — another stand delivers a warning on the looming dangers of unregulated software.

The Davos forum prides itself on its sustainability, and key topics have included climate, mobility, energy and the circular economy. Everything is recyclable, and participants must download an application in order to keep up with the program and any changes — a move to cut down on paper waste.