Australia financial regulator ASIC has issued an AUD $20,000 fine to the Australian unit of German banking giant Deutsche Bank AG (FRA:DBK), to comply with an infringement notice given by ASIC’s Markets Disciplinary Panel.
The penalty was for Deutsche Bank failing to make the necessary enquiry through the message facility of the ASX 24 Market and wait the prescribed period prior to entering orders for execution onto its trading platform as required by the relevant rule.
ASIC claimed that Deutsche Bank’s misconduct reduced the transparency of the market by not providing pre-trade information on the opposing orders which transacted in the relevant trade. The misconduct also had the potential to damage the reputation and integrity of the market because it impacted the fairness of the market, by preventing others from participating in the relevant trade.
Deutsche Bank did not self-report the misconduct to ASIC as required by the Corporations Act, however in response to a notice issued by ASIC, Deutsche Bank acknowledged that it had failed to send an enquiry. Also, the misconduct concerned was due to negligence rather than any intention by Deutsche Bank to inhibit participation in the market.
ASIC also noted that Deutsche Bank cooperated with ASIC throughout its investigation, and did not dispute any material facts. Deutsche Bank agreed not to contest the matter, thereby saving time and costs.
More on the fine can be seen at ASIC’s website.