The Financial Services Commission said in a statement on Wednesday that it will ask persecutors to investigate five Deutsche Bank employees on the happening last November which triggered Korea stocks to fall sharply by almost 3 percent.
Deutsche Banks said in a statement that it was disappointed by the result of Korean regulator’s investigation, and will cooperate with Korean authorities.
The sudden slump in the benchmark Kospi during the last 10 minutes of trading on November 11 prompted Korean regulator to investigate and bring the result of investigation to limit the number of equity derivate contracts investors can hold.
Regulators began investigating Deutsche Bank units in Seoul and Hong Kong after the Financial Supervisory Service said about 1.6 trillion won ($1.4 billion) of sell order were made through company’s Korean brokerage unit, the Wall Street Journal reported.
Deutsche Bank breached stock exchange rules governing the disclosure of computer-driven trades by filing a report on minute later that day, the Journal added.
Korea Exchange will hold a meeting Feb.25 to discuss penalties for the local brokerage unit. According to FSC’s today announcement, Deutsche Bank units allegedly made 45 billion won of unfair trading profit on Nov.11.
The regulator said it didn’t file a complaint with South Korean prosecutors against the Deutsche Securities Korean Co.’s parent company. The bank said it will hold an independent review of systems and controls as its Asian Equities Absolute Strategies Group.
(아주경제 송지영 기자)
reporter
Park Sae-jin
swatchsjp@ajunews.com