Kredittilsynet's investigations into DnB NOR Markets' trade in Norwegian government bonds:
As known, Kredittilsynet (the Financial Supervisory Authority of Norway) has been investigating DnB NOR Markets' trade in Norwegian government bonds in the period immediately prior to the public announcement of the Government's crisis package for the financial sector on Sunday 12 October this year.
The investigations have particularly focused on the trades on Thursday 9 October and Friday 10 October. Kredittilsynet has collected information and explanations from the Ministry of Finance, the Prime Minister's Office, Norges Bank, DnB NOR and Oslo Børs (the Oslo Stock Exchange).
Kredittilsynet's investigations give grounds for suspecting that some of the sales of government bonds undertaken by DnB NOR Markets on 10th October were in breach of the Securities Trading Act, section 3-3, as the person who carried out the sales was in possession of inside information bearing on the price of the government bonds that were sold.
Furthermore, Kredittilsynet's investigations give grounds for suspecting that one employee in DnB NOR Markets has handled inside information in an improper manner. The reporting to Økokrim also covers the handling of inside information by the bank.
In order to clarify the suspicion, Kredittilsynet has found reasons to report the case to Økokrim. Kredittilsynet also believes that this would be a pertinent way to secure further evidence.
The information that Kredittilsynet has collected in this case does not give grounds for concluding that inside information has been provided from public authorities to persons who were not deemed concerned.
The report to Økokrim of 22 October 2008 covers suspicion of breach of:
- The Securities Trading Act, section 3-3 on misuse of inside information
- The Securities Trading Act, section 3-4 on duty of confidentiality and due care in handling inside information.
Kredittilsynet is awaiting Økokrim's further processing of the case. Depending on the result of these evaluations, Kredittilsynet will assess the need for a supervisory follow-up of DnB NOR's internal routines for handling inside information.
Contact persons:
Deputy Director General Eirik Bunæs, tel. +47 22 93 98 18 (secretary), mobile: +47 911 65 817
Head of Section Geir Holen, tel. +47 22 93 99 83, mobile: +47 957 82 469
Contact person in the Communications Unit:
Head of Communications Kjetil Karsrud, tel. +47 22 93 99 34, mobile: +47 906 57 621
