CHICAGO May 12 Financial exchanges run by CBOE
Holdings Inc, NASDAQ OMX Group Inc and
IntercontinentalExchange Group Inc on Monday said they
fined a trading firm and its chief $1.5 million for manipulating
In addition, a trader was fined $250,000.
New York-based HAP Trading LLC and Chief Executive Harsh
Padia were ordered to give up $1.25 million in profits and pay
$250,000 in penalties for manipulation and for failing to
properly supervise an employee, according to a statement from
Proprietary trader Saagar Gupta engaged in "cross-product
manipulation" on behalf of HAP Trading on multiple dates from
May to July 2010, the statement said. He was suspended from
trading for three months and fined $250,000 by the Chicago Board
Options Exchange, owned by CBOE, NASDAQ OMX PHLX, and by NYSE
MKT and NYSE Arca, which are owned by ICE.
HAP Trading could not be reached for comment.
CBOE and NASDAQ had previously disciplined HAP Trading for
other violations, according to the Financial Industry Regulatory
Authority. The firm is no longer registered with FINRA,
according to the regulator's website.
CBOE, which was fined $6 million last year for failing to
police its own marketplace properly, this year unveiled tighter
rules for traders to help prevent fraud. The New York Stock
Exchange this month agreed to pay $4.5 million to settle charges
brought by U.S. securities regulators that the exchange flouted
its own rules.
(Reporting by Tom Polansek; Editing by Dan Grebler)