SFC reprimanded BNP for weak settlement
The Securities and Futures Commission has publicly reprimanded BNP Prime Peregrine Securities for the company's weak settlement system. An SFC investigation found the company had improperly transferred a small number of clients' shares among its accounts at the Central Clearing and Settlement System.
Some clients' shares were used to settle others' stock transactions traded on August 28, 1998, the day the Government intervened in the stock market to fend off speculators, the SFC said.
However, no clients had suffered losses, and BNP Prime Peregrine had already taken steps to improve its settlement system, the SFC said.
BNP Prime Peregrine said it 'regretted the SFC's announcement'.