The FSA has obtained a High Court injunction against a number of companies and individuals who made more than £1m from manipulating the market in UK shares.
It has issued proceedings against Da Vinci Invest Ltd, a UK-registered but Swiss-based fund manager, a related Singapore-based company Da Vinci Invest PTE Ltd and Seychelles-registered Mineworld Ltd.
Proceedings have also been issued against Szabolcs Banya, Tamas Pornye and Gyorgi Brad - all of whom are resident in Switzerland and/or Hungary - who traded on behalf of those companies.
The FSA believes the companies and individuals committed market abuse by engaging in a form of manipulative trading known as "layering", which created a misleading impression of the supply and demand of shares.
The firms and individuals traded across a number of UK trading platforms, with the FSA estimating they made over £1m gross profit from the activity over a period from August 2010 to July 2011.
The manipulation was done by placing large orders for shares which they had no intention of allowing to trade - action resulting in fluctuating share prices as markets reacted to perceived changes in supply and demand.
Traders then took advantage of the price changes by repeatedly buying shares when prices had been manipulated downwards and selling when manipulated upwards.
The FSA obtained an interim injunction freezing the assets of the companies on 12 July and a further order continuing the freezing injunction and restraining the market abuse on 31 August.
FSA acting director of enforcement and financial crime, Tracey McDermott, said: "This injunction shows that the FSA will take swift and decisive action to protect the integrity of UK markets, wherever those seeking to abuse them are based.
"These companies engaged in repeated cross-platform market manipulation, which the FSA will not tolerate."
The injunction comes as the FSA clamps down on companies engaging in market manipulation.
Yesterday, the regulator said it intends to fine Canadian trading platform Swift Trade £8m for manipulative trading on the the London Stock Exchange.
Head of UK intermediary distribution
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