Denmark’s financial regulator has filed a criminal complaint against Danske Bank for violating market abuse regulations concerning “inadequate market monitoring and opposite trades,” the bank announced Wednesday.
According to the Danish Financial Supervisory Authority (FSA), between August 2016 and February 2019, Danske misinformed the financial market by facilitating so-called “wash trades,” in which securities are sold and bought by the same person. Because such trades could misleadingly prop up or devalue the price of securities, the FSA said it “therefore finds that Danske Bank has violated the prohibition on market manipulation and has reported Danske Bank [to the police] for this.”
