Jefferies Bache carbon broker suspended for bourse rules breach
LONDON, June 26
LONDON, June 26 (Reuters) - A carbon broker at London-based Jefferies Bache has been suspended for breaking rules on commodity and energy exchange ICE Futures Europe, the exchange said on Thursday.
Joshua Gershon was found by ICE to have profited by trading ahead of client orders on nine occasions between June 2012 and August 2013, the exchange said in a note to members.
ICE said he took personal positions on the exchange before agreeing over-the-counter deals at less favourable prices with his clients, which were then cleared by ICE.
"The exchange undertook its own investigation and concluded that Mr. Gershon had failed to give priority to client orders over his own activity, and withheld client orders from the market which were capable of being executed at a better price," ICE said.
Attempts to reach Gershon were unsuccessful while a spokeswoman for Jefferies Bache declined to comment on the matter.
ICE said Gershon's actions appeared to result from a lack of understanding of his role and the exchange's rules.
ICE said Gershon's clients were reimbursed for undisclosed losses due to his activities.
It added that Gershon was suspended by his employer, had part of his accreditation under British industry regulators the Financial Conduct Authority revoked, and faced fines including the forfeiture of his 2013 bonus. (Reporting by Michael Szabo; editing by Keiron Henderson)