Morgan Stanley finally sees its precious sesame taken away. The French authorities have decided to suspend as of Tuesday the status of " specialist in treasury securities " (SVT) of the American bank for facts dating back several years, announced Agence France Trésor (AFT) in a press release.
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The term Treasury securities specialists designates the 15 European, American and Japanese financial institutions, partners of Agence France Trésor (AFT) which place France's public debt on the financial markets.
Manipulation on the price of debt
Last December, Morgan Stanley was found guilty by the Autorité des marchés financiers (AMF) of manipulating the price of France's debt. The American bank had artificially raised the price of French debt via purchases of futures contracts, with the aim of then selling it more cheaply. The market policeman had imposed a heavy sanction of 20 million euros on the American bank. At the time, Morgan Stanley appealed the decision of the AMF Sanctions Commission.
These transactions carried out in 2015 had “ had the effect of seriously undermining the liquidity of the French sovereign bond market, in contradiction with its SVT obligations ” underlines Agence France Trésor. The latter also accuses Morgan Stanley of not having immediately informed it of the opening of an AMF investigation in June 2017.
AFT's suspension applies for a period of at least three months and the restoration of its status is “ subject to compliance with remedial measures agreed jointly with AFT ”.
In a statement published on Tuesday, Morgan Stanley explains " take note of the decision of Agence France Trésor (AFT) to temporarily suspend its SVT status ". The American bank " as SVT specialist in the public debt of the French State for more than 30 years " works in close collaboration with AFT " with a view to putting in place remedial measures ".