Stockholm Stock Exchange fined nearly $10 million for insider trading oversights
Sweden’s financial watchdog announced on Wednesday (June 19) that it had fined the Stockholm stock exchange nearly US$10 million for its failure to detect and report suspected insider trading.
The Financial Supervisory Authority (FSA) reported that it had investigated “four major company events in 2021 and 2022” along with two additional cases of trading of financial instruments in 2022 and 2023.
“The investigations reveal that during the four company events, there were deficiencies in how Nasdaq Stockholm conducted its trading monitoring, which is intended to prevent, identify, and report insider dealing,” the FSA stated.
The four companies involved were identified as food retailer ICA, Lundin Energy, tobacco producer Swedish Match, and vehicle safety product maker Haldex.
“The investigations also show that Nasdaq Stockholm twice initiated trading in financial instruments in violation of the regulatory framework,” the FSA added.
The authority clarified that the violations were not severe enough to justify revoking the exchange’s authorization.
