Nasdaq Clearing appeals $36 million fine by Swedish financial watchdog
Reuters
Published Feb 16, 2021 09:54AM ET
Updated Feb 16, 2021 10:55AM ET
By Nora Buli
OSLO (Reuters) - Nasdaq Clearing has appealed a fine from Sweden's financial supervisory authority over deficiencies uncovered in the wake of a trader's default in 2018, the Nasdaq subsidiary said on Tuesday.
The financial watchdog on Jan. 27 issued a warning and a 300 million Swedish crowns ($36.19 million) administrative fine to Nasdaq Clearing for insufficient follow-up of memberships, miscalculations of trading margins and over its risk management.
Nasdaq Clearing said in a statement it had decided to appeal the decision as it disagreed with several of the fundamental assessments that underpinned the decision as well as its conclusions.
"Fundamentally, it is our belief that while the member default showed that improvements could be made, it also showed that our system worked and that the security walls and the default waterfall were sufficiently robust, even in such a stressful and highly unlikely event," it said.
Nasdaq Clearing said the matter was now the subject of an appeals process at the Stockholm administrative court and that it would refrain from further comments at this stage.
Following the default, Nasdaq had launched a comprehensive programme to strengthen its resilience and robustness, it said last month.
The trader default followed big fluctuations in market spreads, when power prices in the Nordic region - which depends on hydroelectric power - fell amid heavy rain while German prices spiked along with the cost of carbon, Nasdaq said at the time.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.