Written by: Zhang Weilun
Last update date: 2020-11-09 21:12
Credit Suisse Securities was condemned by the China Securities Regulatory Commission and fined 2.1 million yuan for violating regulatory requirements due to flaws in its electronic trading system.
The Securities Regulatory Commission found that Credit Suisse Securities sent 16,935 erroneous market maker quotes to the market between 9:39 a.m. and 9:47 a.m. on February 28, 2019, resulting in the execution of 8,042 stock option transactions at prices deviating from the current market price. .
The accident was caused by a logic error in the symbol matching program used by Credit Suisse Securities as a stock option market maker when generating market maker quotes.
The Securities Regulatory Commission believes that the internal control measures and regular tests established by Credit Suisse Securities at that time failed to prevent or promptly detect the relevant accidents, and the relevant deficiencies violated the electronic trading regulations under the Code of Conduct.
When deciding on the above sanctions, the SFC has taken into consideration all relevant circumstances, including Credit Suisse Securities' prompt remedial action after the incident, and cooperation with the SFC to resolve its concerns.