* Danske Bank to pay 500,000 SEK for breaching trading rules
* It placed orders that were not intended to result in
trades -Nasdaq OMX
* The orders were genuine and intended to lead to trades
(Adds Danske Bank comment)
April 16 The Nasdaq OMX stock exchange in
Stockholm has fined Danske Bank 500,000 Swedish
crowns ($76,100) for breaching trading rules in a placing of
orders for shares in drugs company AstraZeneca, it said
The market's disciplinary committee accused the bank of
having placed orders for shares in AstraZeneca (AZN) that were
not intended to result in trades but to send signals to other
"Danske Bank had repeatedly placed orders pertaining to very
large blocks of shares in AZN, orders that were cancelled after
a few seconds," Nasdaq OMX said.
The bank had placed smaller orders on the opposite side of
the order book that remained in place for longer periods of time
and resulted in trades, Nasdaq OMX said.
"On the whole, the trading pattern indicated that there was
no intention that the orders registered would result in a trade,
and that they had instead been designed during brief periods to
send signals to other market participants of an increased supply
of, or demand for, AZN shares," Nasdaq OMX said.
Nasdaq OMX said it assumed that the trader and Danske Bank
did not realise that the trading pattern was prohibited and that
the bank, immediately after the disciplinary matter had been
initiated, said the trading pattern would cease.
The disciplinary committee therefore decided to impose a
fine at the lower end of the scale and the trader involved has
been sent a warning, it said.
Danske Bank's head of equity trading, Henrik Voetmann
Mikkelsen, said that the dealer concerned had intended to make a
genuine transaction with a commercial purpose but the bank
accepted the disciplinary committee's decision and has
emphasised strongly to its dealers how the rules should be
In February Denmark's public prosecutor for serious economic
and international crime said it was investigating Danske Bank
over alleged price manipulation.
($1=6.5695 Swedish crowns)
(Reporting by Teis Jensen and Stine Jacobsen; Editing by Greg
Mahlich and David Goodman)