Financial Regulator Statement - Market Abuse

jetski

The Financial Regulator is concerned that false and misleading rumours circulating in financial markets in recent days are connected to unusual trading patterns in Irish shares. The Financial Regulator is examining certain transactions in this regard.
Con Horan, Prudential Director of the Financial Regulator said today, “We are working closely with other regulators, including the UK’s Financial Services Authority (FSA) in relation to concerns about this type of activity. Market participants who take unfair advantage by spreading false rumours while trading on the basis of those rumours are in breach of market abuse regulations and we will actively pursue those who may be engaged in this.”

http://www.financialregulator.ie/frame_main.asp?pg=%2Fnews%2Fnw%5Farticle%2Easp%3Fid%3D348&nv=%2Fnews%2Fnw%5Fnav%2Easp

Afuera

Rumours about rumours in the financial markets...

What's it got to do with property though?

jetski

emm... Thats a good question

dudara

jetski wrote: »

The Financial Regulator is concerned that false and misleading rumours circulating in financial markets in recent days are connected to unusual trading patterns in Irish shares. The Financial Regulator is examining certain transactions in this regard.

There was an article in one of the papers recenrly concerning HSBC shares (I think) and shorting. Emails were circulated stating that the bank would be announcing difficulties and as a result traders took advantage of the falling share price to sell short positions. Selling short positions is not illegal but if this was the case, then the act was very morally questionable.

niall2j

dudara wrote: »

There was an article in one of the papers recenrly concerning HSBC shares (I think) and shorting. Emails were circulated stating that the bank would be announcing difficulties and as a result traders took advantage of the falling share price to sell short positions. Selling short positions is not illegal but if this was the case, then the act was very morally questionable.

It was actually HBOS (Halifax Bank of Scotland) ... a lot of people seem to be mixing them with HSBC.

http://www.ft.com/cms/s/0/b9a169ea-f7b1-11dc-ac40-000077b07658.html

Still doesn't belong in this forum though

Victor

Actually, it not that far off-topic for this forum. Much of hte lending that might or might not get banks into trouble is property related.

fintan

The reason it belongs in Accomodation is these rumours effect the ability of bank to borrow money on the inter-bank market. If banks find it difficult to borrow money they will restrict lending.

So for example in the UK at the moment, 100% mortgages have dissapeared, first time buyers / buy to lets are being capped at approx £300k, deposit requirements have increased etc

Victor

Please note a new section in the charter "The discussion of the solvency of individual financial institutions or their future fate is not permitted.".