Significant victory

1 March 2006 By Chris Hughes

The UK regulator has fined the hedge fund and its star trader Philippe Jabre £750,000 each after bringing a successful market abuse case. That sounds modest. But the fines are higher than previous punishments for market abuse. And this is still a symbolic victory for the FSA.

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GLG Partners, the hedge fund, and its star trader Philippe Jabre have been fined £750,000 by the UK Financial Services Authority following an investigation into alleged market abuse. The regulator is believed to have been targeting a fine for Jabre closer to £1m, according to a person familiar with the case. GLG's fine is for being vicariously responsible for Jabre's conduct.

Jabre is alleged to have improperly traded on information received during the premarketing of a convertible bond issue in 2003.

GLG and Jabre have 28 days to appeal the fines.

Neither the FSA nor GLG would comment. Jabre could not be immediately reached for comment.

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