JSE Ltd. (JSE), operator of Johannesburg’s stock exchange, dismissed Allan Thomson as director of equity derivatives trading for irregular trading on his own account. Thomson, 45, traded in both the derivatives and cash markets for his own account and without authorisation, Chief Executive Officer Russell Loubser. Personal- account trading is allowed in certain departments within the JSE if prior permission was granted, he said.
“Those procedures were not followed by Allan and a disciplinary process took place,” Loubser said. “Allan was found guilty and he was dismissed. The rules were breached.” Thomson, who led the JSE’s move to the electronic trading of certain equity derivative products through the bourse’s central order book, said he placed orders in the market to block participants who were trying to bypass the central order book.
Thomson was removed from his post on Nov. 4, the JSE said in an e-mailed statement today. Graham Smale, director of the bourse’s interest-rate products, will take over until a permanent replacement is found, according to the JSE. The departure may lead to a restructuring of the equity derivatives division, Loubser said, without providing further details.
“It was with the full knowledge of my team and wasn’t done for personal profit,” Thomson said . “I did something that a director of the JSE shouldn’t be doing, but at the same time I thought it was for the benefit of the market and it was born out of frustration.
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