FCA slaps hedge fund CIO with £100k ‘market abuse’ fine

The FCA has fined Corrado Abbattista, formerly a portfolio manager, partner and chief investment officer at Fenician Capital Management LLP, £100,000 for market abuse. 

Following an investigation, the FCA found that Abbattista engaged in market abuse by “creating a false and misleading impression” as to the supply and demand for equities between 20 January and 15 May 2017. 

It is reported that on multiple occasions, Abbattista placed large misleading orders for Contracts for Difference (CFDs), referenced to equities, which he did not intend to execute. 

At the same time, he placed smaller orders that he did intend to execute on the opposite side of the order book to the misleading orders. 

The FCA said that through his large misleading orders, Abbattista “falsely represented to the market” an intention to buy/sell when his true intention was the opposite. Reports by the authority also revealed that Abbattista was aware of the risk that his actions might constitute market manipulation, but “recklessly went ahead with those actions anyway”.

Mark Steward, executive director of enforcement and market oversight, said: “Market manipulation is corrosive of market integrity, undermining clean, efficient and fair markets. 

“The FCA has increased its capability to detect and take robust action against the harm to shareholder value caused by such abuse.”