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Central Bank fines Merrion €65,000

THE Central Bank hit Merrion with a €65,000 penalty and reprimand for failing to report correctly nearly 60,000 trades on European stock markets between 2007 and 2011.

The bank said Merrion "failed to report" the trades to the Central Bank in a series of so-called "next-day reports" brokers must file with it as part of EU trading regulations.

The bank found a number of breaches by Merrion. On July 14, 2010, 373 transactions were not reported, while 327 trades weren't included on October 14 of that year.

Six weeks later, 612 trades weren't included and between November 1, 2007, and August 26, 2011, 10,078 trades were not reported. As well as this, between November 1, 2007, and June 20 last year, Merrion incorrectly reported whether 45,782 trades were "buys" or "sells".

In addition, the firm "failed to establish adequate policies and procedures sufficient to ensure compliance" with part of the "MiFID" regulations on trading in the European Economic Area.

No client accounts were affected by the errors, and Merrion's stated trading position was never incorrect because of the breaches.

Irish Independent