Credit Suisse Broker Suspended By Hong Kong Regulator

Law360, New York (December 13, 2006, 12:00 AM EST) -- The Hong Kong Securities and Futures Commission has suspended a Credit Suisse Group broker for allegedly trading on inside information, marking the first time the regulator has taken an action of this kind.

Stephane Hug allegedly engaged in a practice known as “sounding out,” in which a bank underwriting a transaction makes public certain information about the deal in order to determine the interest of a prospective buyer.

In 2003, Daiwa Securities SMBC allegedly contacted Hug with information about an upcoming convertible bond issue by Sumitomo...
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