FSA Obtains Injunction against Market Manipulation

September 1, 2011

The Financial Services Authority has obtained an interim injunction from the English High Court to restrain the operations of a number of companies it believes have participated in the market manipulation in UK listed shares.

The alleged manipulation involved the process of 'layering', by which the various entities are alleged to have created a false impression as to the supply and demand of shares by placing large orders for shares which they had no intention of allowing to trade. The FSA's overall investigation of the matter and the associated court case are set to continue.