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They say, We say

26 Mar 08

How can the FSA track down rumour mongers?

They Say

“There has been a series of completely unfounded rumours about UK financial institutions in the London market over the last few days, sometimes accompanied by short-selling. We will not tolerate market participants taking advantage of the current market conditions to commit abuse by spreading false rumours and dealing on the back of them.

“We remind market participants of the market code of conduct.”

Sally Dewar, managing director, wholesale and institutional markets with the Financial Services Authority, promising action after HBOS’s stock appeared to have been targeted by a false rumour that the bank was in trouble.

We Say

Good luck to the FSA in their hunt for the rogue traders who seem to have exploited a jittery market to make a killing. In reality, though, there’s very little hope of finding the originators of a rumour, and financial instruments and structures are so complex now that the originator of a trade can remain pretty much anonymous, if that is what they want.

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