The trial found that Martyn Dodgson and Andrew Hind agreed to deal secretly, sometimes on the basis of inside information which Dodgson sourced from within the investment banks at which he worked.
Dodgson worked at Morgan Stanley as a Vice President in Global Capital Markets until January 2007, and then at Lehman Brothers as an Executive Director in the European Investment Banking Division from July 2007 to September 2008. He moved to Deutsche Bank in October 2008 as a Director in the Corporate Broking Department and was later promoted to Managing Director.
In a statement, the FCA said that "the offending in this case was highly sophisticated and took place over a number of years", with the defendants putting in place "elaborate strategies designed to prevent the authorities from uncovering their activities".
Confiscation proceedings will also be pursued against both defendants.
In sentencing Dodgson and Hind the trial judge, His Honour Judge Pegden, remarked that their offending was "persistent, prolonged, deliberate, dishonest behaviour".
Mark Steward, FCA Director of Enforcement and Market Oversight, said:
"This case involved serious offending over a number of years, conducted in a sophisticated way using deliberate techniques to avoid detection. Dodgson was an approved person who was entrusted by his employer with sensitive and valuable information. He betrayed that trust by exploiting the information for his own benefit, conspiring with Hind to deceive the market.
"Insider dealing is ever more detectable and provable. And this case shows lengthy terms of imprisonment, not profits are the real result."