An enforcement action has been taken by the UKFSA against GLG Partners L.P. and one of its former managing directors for market abuse involving the Japanese securities market

Press Release
(Provisional Translation)

2 August, 2006
Securities and Exchange Surveillance Commission

An enforcement action has been taken by the UKFSA against GLG Partners L.P. and one of its former managing directors for market abuse involving the Japanese securities market

The UK Financial Services Authority (hereinafter referred to as ''UKFSA'') announced yesterday that it has taken financial penalty enforcement action against GLG Partners L.P., which is a UK hedgefund based in London (hereinafter referred to as ''GLG''), and one of its former managing directors (hereinafter referred to as ''the former managing director'') for breaches of the UK Financial Services and Markets Act 2000 (hereinafter referred to as the ''FSMA'') based on UKFSA's findings that GLG and the former managing director committed market abuse involving securities traded in the Japanese market.

This market abuse concerned a securities transaction in the Japanese securities market by a foreign resident. The enforcement action by the UKFSA has come as a result of close cooperation between the UKFSA and the Japanese Securities and Exchange Surveillance Commission (hereinafter refer to ''SESC''), based on information detected by the SESC.

Outline of the case

(1)

Sumitomo Mitsui Financial Group Inc. (hereinafter referred to as ''SMFG'') made an announcement on its public offering of the preferred stock with the size of over ¥300 billion before the opening of the stock markets on 17 February 2003. The former managing director received and used the above information before the announcement, resulting in the short sale of SMFG shares based on the non-public information on 12 - 14 February 2003. As the price of SMFG shares fell after the announcement of the proposed offering, the short sales of SMFG shares resulted in gains for the GLG fund managed by the former managing director.

(2)

The UKFSA has found GLG and the former managing director to have committed market abuse of the Financial Services and Markets Act 2000 (hereinafter refer to ''FSMA'') and contravened Principle of the UKFSA's Principles for Businesses. The UKFSA imposed financial penalties on GLG and the former managing director. The name of the former managing director and the amount of financial penalties to be paid to the UKFSA are as follows:

	GLG		£750,000
	The former managing director: Philippe Jabre		£750,000

(3)

The SESC appreciates the cooperation of the UKFSA and will continue to advance the close cooperation.

This case is the fruit of international cooperation to combat cross-border market misconduct, which is similar to the enforcement action taken by the Monetary Authority of Singapore (MAS) to impose financial penalties against three employees of the Government of Singapore Investment Corporation (GIC) for breaches of the Securities and Futures Act of Singapore based on the SESC's findings that they committed insider trading involving the Japanese securities market. The SESC would like to continue promoting such international cooperation with foreign regulators.

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