A Chinese court ruled against a former Everbright Securities executive who sued the country's securities regulator for punishing him for insider trading.
In February, Yang Jianbo, former general manager of a high-frequency trading unit at Everbright Securities , sued the China Securities Regulatory Commission (CSRC), challenging the lifetime ban from the industry and 600,000 yuan ($99,000) fine that the regulator imposed on him in November 2013.
The Beijing First Intermediate Court ruled against Yang, according to a statement on Weibo, the court's official messaging service.
Calls to Yang's mobile phone were not answered.
The CSRC had said that after a computer malfunction on Aug. 16, 2013 caused Everbright to take a 7.27 billion yuan long position in a commonly traded exchange-traded fund, Yang and his colleagues committed insider trading by partially unwinding that position later that day without properly disclosing the original trading error.
Yang's suit argued that existence of a trading error did not constitute insider information and that subsequent trades designed to unwind it were in line with the unit's normal hedging strategy, not an exceptional response to the mistaken orders.
