Hong Kong’s Securities and Futures Commission (SFC) has reprimanded Deutsche Securities Asia and fined it HK$2.5m ($322,600, €244,700) for regulatory breaches and internal control failings relating to position limit failures.
The disciplinary action follows an SFC investigation into the holding of Deutsche Securities on behalf of its “client”, Deutsche Bank AG London, of 57,403 contracts in China Construction Bank stock options, “in breach of the prescribed position limit of 50,000 contracts on 1 Sept 2011,” the SFC said in a statement issued this morning.
The Hong Kong regulator said it had found that Deutsche Securities Asia had “failed to enforce its internal control procedures to ensure that all open positions in stock options contracts it held or controlled were in compliance with the prescribed position limits”.
The full statement may be viewed on the SFC’s website by clicking here.
