(Adds details, context)
LONDON, May 3 (Reuters) - The London Metal Exchange
(LME) said on Wednesday it had agreed a settlement with
commodities broker Sucden Financial Limited (SFL) in which
Sucden would pay a financial penalty of 100,000 pounds
($125,460).
The exchange, the world's oldest and largest market for
industrial metals, said the settlement was agreed after an
investigation by the LME which commenced as a result of trading
activity which took place on May 3, 2019 and which coincided
with the Zinc Kerb Ring trading session of the same day.
"During the course of the investigation, the LME concluded
that between at least May 3, 2019 and March 2021, SFL failed to
organise and control its internal affairs responsibly and
effectively with appropriate and adequate risk management
systems to deter potential instances of market abuse," the LME
said in a notice.
Sucden was open and cooperative with the LME during the
investigation and has also already enhanced its risk management
systems and controls to deter potential instances of market
abuse with regards to its LME business, the exchange said.
Sucden did not immediately reply to a request for comment.
($1 = 0.7971 pounds)
(Reporting by Polina Devitt; Editing by Alison Williams,
Kirsten Donovan)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.