New York (HedgeCo.Net) – The British Financial Services Authority has imposed a fine on Steven Harrison for about $93,000 after accusing him of market abuse. Harrison will not be allowed to work as a trader for the next 12 months.
According to the allegations made by the FSA, Harrison told a co-worker at the Moore Credit Fund to purchase 2 million 10.5 percent senior notes in chemical company Rhodia SA, after having received insider information from members at Credit Suisse. Harrison was contacted in September 2006 by Credit Suisse to help them establish pricing for Rhodia’s bonds.
Knowing that Rhodia would be seeking board approval for its refinancing, Harrison made the order. The fund proceeded to make about $63,000 off that knowledge, though the FSA is not condemning the actions of Credit Suisse.
The FSA also acknowledged that Harrison did not make a personal profit from those trades. Harrison worked for Moore Europe Capital Management; a subsidiary of New-York based Moore Capital Management.
Moore Capital has a long standing reputation in the states for the global-macro strategies they employ, while investing in stocks, bonds and currencies. Founded by U.S. billionaire Louis Bacon in 1989, Moore Capital manages an estimated $15 billion in assets.
This is the latest in a string of attempts by the FSA to further probe hedge funds, after passing two new rules this summer requiring disclosure about shorting stocks and regarding derivatives.
Julie Scuderi
Senior Editor for HedgeCo.Net
Email: julie@hedgeco.net
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