Market abuse fears prompt FSA share trade probe

The regulator says it will not tolerate traders or firms taking advantage of the current market conditions to "commit abuse by spreading false rumours and dealing on the back of them". The term 'short selling', or shorting, describes a strategy enabling an investor to gain from a decline in share or security price. Reports suggest the Bank of England (BoE) requested the FSA probe following rumours that Halifax Bank of Scotland (HBOS) had approached it for emergency funding, a move denied by both HBOS and the BoE. As at 3.40pm, shares in HBOS had fallen 32.5p, or 6.77%, to 447.75. Th...