UBS fined $280k for system failures

Deficiencies were seen on UBS’ price improvement network and Opera trading systems.  

UBS has paid a total of $280,000 to authorities in Australia for several system deficiencies which saw clients lose money.

The Markets Disciplinary Panel (MDP) handed UBS Securities Australia two infringement notices for the failures that took place in 2015.

UBS failed to ensure its price improvement network (PIN) dealt with orders fairly and problems with the service saw 536 wholesale clients affected by financial losses.

The Swiss bank also administered over 170,000 confirmations related to crossings that recorded the execution venue as being the Australian Securities Exchange (ASX) when the crossings were actually executed on UBS systems.

The MDP found the issue was caused by a deficiency in UBS’s Opera trading system and the evaluation of execution venues sent to it by the bank’s order management system.

Furthermore, UBS gave a total of 13,703 confirmations to more than 100 clients that failed to disclose the bank had acted as principal when it entered transactions as a counterparty.

UBS paid $140,000 for the PIN failures and $140,000 for incorrectly disclosing crossing confirmations.