Six Swiss Exchange has placed a fine of CHF10,000 upon Luxembourg-based db x-trackers Sicav for v...
Six Swiss Exchange has placed a fine of CHF10,000 upon Luxembourg-based db x-trackers Sicav for violating reporting requirements. The fine is due to the failure to report dividend payments for several of its ETFs which are traded on Six Swiss Exchange.
In August last year, db x-trackers Sicav Luxembourg failed to deliver on time the required data on dividend payments for several ETFs to Six Swiss. As Six Swiss received no report, the current market price of the related equity securities was not correctly set on August 22 2008. Consequently, the securities were traded at prices that were excessive by the amount of the dividend, which caused mistrades. Six Swiss had to temporarily suspend trading in these ETFs to halt transactions occurring at the incorrect price.
Six Swiss requires companies with ETFs listed on its exchange to report all relevant dividend payments, as well as data to ensure the correct conduct of trading. Issuers of listed ETFs are obliged to report on the day that a dividend is to be paid and the day on which Six Swiss Exchange must deduct the amount of the dividend from the current price of the ETF.
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