The FCA has published a decision notice for Corrado Abbattista, an experienced trader and a portfolio manager, partner and Chief Investment Officer at Fenician Capital Management, for market abuse.
The authority has now imposed a financial penalty of £100,000, and prohibited him from performing any functions in relation to regulated activity.
Abbattista has referred the notice to the Upper Tribunal, where both he and the FCA will each present their cases.
The Tribunal will then “determine what, if any, is the appropriate action for the FCA to take, and will remit the matter to the FCA with such direction as the Tribunal considers appropriate for giving effect to its determination”.
It comes as the FCA believes that between 20 January and 15 May 2017, Abbattista “repeatedly” placed in the market large misleading orders for Contract for Differences (CFDs), referenced to equities, which he “did not intend to execute”.
He also placed smaller orders that he did intend to execute on the opposite side of the order book to the misleading orders.
According to the authority, Abbattista “falsely represented” to the market an intention to buy/sell when his “true intention was the opposite”.
At the same time, his misleading orders were reportedly for volumes of shares “far greater” than the typical market size, which would also have “created a false and misleading impression regarding the true supply of and demand for the shares in question to other market participants”.
In a statement, the FCA said: “Mr Abbattista was aware of the risk that his actions might constitute market manipulation, but recklessly went ahead with those actions anyway.
“The trading undertaken by Mr Abbattista was initially identified by the FCA’s internal surveillance systems.”
It added: “The FCA ingests order book data from the leading UK equity trading venues and then runs surveillance algorithms, designed to identify potentially abusive behaviours, across that consolidated data set.
“The FCA considers that the fine and the prohibition sought reflect the serious nature of the breach set out in the Decision Notice and should act as a deterrent to other market participants.”