FCA has published a decision notice imposing a £100,000 penalty on an individual for market abuse and banning him from performing any functions in relation to any regulated activity.
It found that Corrado Abbattista, who it described as an experienced trader and a portfolio manager, partner and CIO at Fenician Capital LLP, repeatedly placed in the market, over a 5 month period, large misleading CFD orders referenced to equities, which he did not intend to execute. At the same time he placed smaller orders that he did intend to execute on the opposite side of the orderbook. FCA said that he therefore falsely represented to the market his intention to buy or sell, when his true intention ws the opposite – and the unusually large orders would have created a false and misleading impression as to the supply and demand for the shares in question.
FCA’s internal surveillance mechanisms had originally identied the trading. FCA noted that Mr Abbattista was aware his actions might be viewed as market abuse, but went ahead anyway.
He is appealing to the Tribunal.