FSA bans Morgan Stanley trader

by Gill Montia

Story link: FSA bans Morgan Stanley trader

The Financial Services Authority (FSA) has banned a former trader at Morgan Stanley’s London offices, for seeking to conceal his trading position.

David Connor Redmond was employed on the freight desk of the investment bank’s commodities division.

In February of last year, he built up a substantial short position in WTI Futures on the ICE Futures (Europe) web-based trading platform.

He then concealed the position overnight, exposing Morgan Stanley to the risk of incurring a significant loss.

He traded out of the position the next day, having failed to inform his employers of his actions until he was directly challenged.

According to FSA director of enforcement, Margaret Cole, “Redmond continued to get his priorities seriously wrong when he focused on trading out of the position rather than telling his managers.”

The regulator acknowledged that Mr Redmond’s behaviour “appears to have been out of character and unpremeditated” and says it would be likely to agree to an application to lift the ban after two years, provided there is no further evidence of misconduct.