LONDON (HedgeWorld.com)–GLG Partners, Europe’s biggest hedge fund, and one of its star traders have been fined ?750,000 ($1.3 million) each for market abuse and violating market conduct, according to a press report.
The report, in the Financial Times, said the U.K. Financial Services Administration’s regulatory decision committee found trader Philippe Jabre guilty of market abuse and violating market conduct. GLG was found guilty of the same charges for not properly monitoring Mr. Jabre.
Asked whether the hedge fund operator would appeal the FSA finding, a spokeswoman for GLG said: “They are not commenting on anything right now.” She stressed that GLG had cooperated fully with the FSA since the investigation began two years ago into a convertible bond issued in February 2003.
The firm has 28 days to contest the FSA’s decision notice. Doing so would involve filing an appeal with the Financial Services and Markets Tribunal, which operates on an open-ended time frame. Unlike the regulatory decision committee hearing, which was held behind closed doors, an appeal would be in public.
The case focused on whether Mr. Jabre traded on information given to him by Goldman Sachs on a forthcoming deal by Sumitomo Mitsui Financial Group of Japan. GLG, which has US$11 billion under management, still faces regulatory investigations by French and Spanish regulators for alleged actions relating to a number of convertible bond issues.