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OSLO (Reuters) – Nasdaq Clearing has appealed a fine from Sweden’s financial supervisory authority (FI) over deficiencies uncovered in the wake of a trader’s default in 2018, the Nasdaq subsidiary said on Tuesday.
The FI on Jan. 27 issued a warning and a 300 million Swedish crowns ($36.19 million) administrative fine to Nasdaq Clearing for insufficient follow-up of memberships, miscalculations of trading margins and over its risk management.
Nasdaq Clearing had decided to appeal the decision as it disagreed with several of the fundamental assessments that underpinned the decision as well as its conclusions, it told Reuters in a statement.
“Fundamentally, it is our belief that while the member default showed that improvements could be made, it also showed that our system worked and that the security walls and the default waterfall were sufficiently robust, even in such a stressful and highly unlikely event,” it said.
The matter was now the subject of an appeals process at the Stockholm administrative court and the firm would refrain from further comments at this stage, it added.
Following the default, Nasdaq had launched a comprehensive programme to strengthen its resilience and robustness, it said last month.
($1 = 8.2891 Swedish crowns)
