Stevenson intended to sell his holding, worth £1.2 billion, to the Bank of England (the Bank) for an artificially high price during quantitative easing (QE) operations that day. His unusual trading was reported within 40 minutes and the Bank decided not to buy that gilt as part of QE.
Tracey McDermott, the Financial Conduct Authority's (FCA) director of enforcement said:
"Stevenson's abuse took advantage of a policy designed to boost the economy with no regard for the potential consequences for other market participants and, ultimately, for UK tax payers. He has paid a heavy price for his actions.
"Fair dealing is at the heart of market integrity. This case sends a clear message about how seriously the FCA views attempts to manipulate the market."
This is the first enforcement action for attempted or actual manipulation of the gilt market.
Stevenson's conduct, described by the FCA as "particularly egregious", fell far below the standards of integrity expected of FCA approved persons. The investigation found this was the action of one trader on one day, and there is no evidence of collusion with traders in other banks.
