CMA said Tuesday in a statement that
The Capital Markets Authority (CMA) has fined a former CBA Capital executive a total of Sh166.9 million for engaging in insider trading in Treasury bonds between 2016 and 2017. “The Board of the Capital Markets Authority (CMA) has taken enforcement action against David Tumaini
The regulator said that following investigations, it had established the presence of a scheme where fixed income dealers at investment banks, asset management firms and brokerage firms colluded with individual bond facility holders in bank custodial accounts to trade bonds ahead of orders placed by non-suspecting investing clients (also known as front-running a client) for gain. It did not name the other involved agencies nor indicate whether they would also be fined. CMA said the illegal trades were done through
“The investigation further established that the gains arising from these trades would be shared between fixed income dealers and the bond facility owners in contravention of the capital markets legal and regulatory framework,” CMA said. According to CMA,