BNP Paribas SA and Societe Generale SA, France’s largest banks, are considering appealing 500,000-euro ($658,000) fines issued by the Autorite des Marches Financiers for violating market-testing procedures before a bond sale.
The banks were fined by the AMF, France’s financial markets regulator, for breaking rules on how to conduct market polls to ensure against insider trading ahead of January 2009 bond issuances, according to yesterday’s decision.
“The incident resulted from a one-off insufficient administrative process which has no consequence for clients, the bank or corporate bond markets,” BNP Paribas said in a statement e-mailed by Paris-based spokeswoman Julia Boyce.
Societe Generale is considering “options” following the AMF decision, the Paris-based bank said in an e-mailed statement.
BNP Paribas has strengthened “administrative process” to prevent such an incident from recurring, Boyce said.