The Asian branch of Merrill Lynch has been fined HK$3.5 million (US$450,000) for “systems and controls failings” by mis-marking a trading book in exotic options.
The Hong Kong Securities and Futures Commission (SFC) found that between December 2007 and October 2008, a managing director at Merrill Lynch was found to have overvalued the trading book by altering price parameters. This resulted in it being inflated by US$25 million and caused the actual loss in the book to be wrongly reported internally.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
