press center press release

The NASDAQ OMX Stockholm Disciplinary Committee fines Timber Hill Europe

Published

Timber Hill Europe AG (“Timber Hill”), a member of NASDAQ OMX Stockholm AB (“the Exchange”), has breached the Exchange's rules and regulations by automatically issuing sell orders with terms that deviated from the current market value. Accordingly, the Exchange's Disciplinary Committee has ruled that Timber Hill must pay a fine of four hundred thousand Swedish Kronor, SEK 400,000. Timber Hill has undertaken to comply with the Exchange's current rules as long as it remains a member of the Exchange. The Exchange's rules stipulate that orders placed in the order book shall reflect the current market value of the instrument concerned and constitute an actual order and trade. The term “current market value” pertains to prices that, when collectively assessed, reflect the current price based on such factors as price fluctuations for that instrument during the concerned and previous trading days, the instrument's volatility and general price fluctuations in relation to comparable instruments. In accordance with the rules, the member bears the same liability for orders placed via automatic order routing as for orders placed in any other manner in the trading system. Members shall also establish appropriate technical and administrative arrangements in order to ensure that orders placed via automatic order routing do not violate the rules. On July 22, 2009, Timber Hill placed an automatic sell order in the Exchange's trading system. The price limit for this order was repeatedly updated to match the buy order in the order book until no buy orders remained. The final trades were executed at prices that clearly deviated from the prices at which the share in question was trading prior to and following these trades. Timber Hill subsequently contacted the Exchange to attempt to cancel the trades executed at the lowest prices, but this did not occur within the timeframe stipulated by the rules. By issuing these sell orders, without examining their price limits, Timber Hill failed in its responsibility to ensure that automatically placed orders are in compliance with the Exchange's rules. Accordingly, it has been demonstrated that Timber Hill breached the Exchange's rules. The Disciplinary Committee has also taken into account that Timber Hill has breached the rules in a similar manner on previous occasions. Due to this, the Disciplinarily Committee cannot find the breach minor or excusable. Timber Hill is thus unable to avoid a disciplinary sanction. The Disciplinary Committee fines Timber Hill Europe AG four hundred thousand Swedish kronor (SEK 400,000). About the Disciplinary Committee The role of NASDAQ OMX Stockholm's Disciplinary Committee is to consider suspicions regarding whether Exchange Members or listed companies have breached the rules and regulations applying on the Exchange. If NASDAQ OMX Stockholm suspects that a member or a listed company has acted in breach of NASDAQ OMX Stockholm's rules and regulations, the matter is reported to the Disciplinary Committee. NASDAQ OMX Stockholm investigates the suspicions and pursues the matter and the Disciplinary Committee issues a ruling regarding possible sanctions. The sanctions possible for listed companies are a warning, a fine or delisting. The fines that may be imposed range from one to 15 annual fees. The sanctions possible for Exchange Members are a warning, a fine or debarment. The Disciplinary Committee's Chairman and Deputy Chairman must be lawyers with experience of serving as judges. At least two of the other members of the Committee must have in-depth insight into the workings of the securities market. Members: Supreme Court Justice Johan Munck (Chairman), Supreme Court Justice Marianne Lundius (Deputy Chairman), Professor Madeleine Leijonhufvud, Company Director Stefan Erneholm and Company Director Hans Mertzig. Deputies: Authorized Public Accountant Bo Magnusson, Lawyer Wilhelm Lüning, Company Director Jack Junel, Ragnar Boman (MBA) and Carl Johan Högbom (MBA). About NASDAQ OMX The NASDAQ OMX Group, Inc. is the world's largest exchange company. It delivers trading, exchange technology and public company services across six continents, with over 3,700 listed companies. NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market, NASDAQ OMX Nordic, NASDAQ OMX Baltic, NASDAQ OMX First North, and the U.S. 144A sector. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and exchange-traded funds. NASDAQ OMX technology supports the operations of over 70 exchanges, clearing organizations and central securities depositories in more than 50 countries. NASDAQ OMX Nordic and NASDAQ OMX Baltic are not legal entities but describe the common offering from NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius. For more information about NASDAQ OMX, visit http://www.nasdaqomx.com. - # - Media Contact: Anna Rasin +46 8 405 66 12 anna.rasin@nasdaqomx.com Carl Norell +46 8 405 66 39 carl.norell@nasdaqomx.com

In This Story

Nasdaq Press Center

Read the latest press releases, request a press kit, and get in touch with our press team.

learn more