The FSA has banned a commodity broker for manipulating coffee futures and options in the London International Financial Futures and Options Exchange market.
During a key one-minute period of trading on 15 August 2007, commodity broker for Sucden Limited Charles Kerr carried out trades to artificially hike the price of coffee futures for the benefit of his client, who also helped develop the plan.
Kerr has also been fined £100,000 for abuse of the market - a fine which would have amounted to £125,000 had he not agreed to settle the case and qualify for a 20% discount under the regulator's executive settlement procedures.
His client did not make the intended profit.
Kerr, who actively encouraged the market manipulation and benefited financially through a commission on trades, also provided false and misleading information whilst being investigated.
The FSA says Kerr's actions created a false or misleading impression of market prices, thereby constituting "a serious case of market abuse".
FSA director of markets Alexander Justham says: "Kerr breached the standards expected of approved persons and has paid the price.
"Participants in the futures and options markets should be in no doubt about how seriously the FSA views manipulation which disrupts proper pricing mechanisms and risks a false market in the underlying commodity.
"This fine and the ban from working in the financial services industry are significant penalties and should serve as a reminder to all that market manipulation will not be tolerated regardless of whether any profit was made."
SM&CR is the big one
To 'future-proof advice firms'
Latest news and analysis
Three years at Wells Fargo
Effective from 9 December 2019