According to the official announcement Urra, Gonzalez, and Sheth placed small orders they intended to execute on opposite sides of the order book at the same time.
According to the FCA:
The FCA believes that these individuals engaged in deliberate and intentional market manipulations on multiple occasions. They were also dishonest.
In the FCA’s view, the fines and the bans that it has decided to impose reflect the serious nature of the breaches set out in the Decision Notices and should act as a deterrent to other market participants.
FCA’s announcement further detailed that the former Mizuho traders have decided to pursue their case before the Upper Tribunal to decide whether the uphold FCA’s decision, change the size of the penalty or withdraw it altogether.
In a letter to the UK-licensed retail brokers’ CEOs, the regulator warned CFD broker against bad practices and problematic tactics. CFDs, which can result in substantial customer losses, are high-risk products.
LeapRate first published the article FCA bans three former Mizuho bond traders for market abuse