Editorials

EDITORIAL: Prosecute rogue traders

The Capital Markets Authority has shown it is capable of flexing its muscle after it imposed sanctions on the rogue treasury bonds trader who pocketed Sh83.4 million from irregular dealings.

This move ought to instil confidence in the bonds market by the sending a message that there is no place to hide for rogue traders who seek to short-circuit the system for unfair gain. Markets operate on the principle that every player comes forth with clean hands.

When unscrupulous dealers make irregular gains by manipulating the system, this discourages genuine investors who feel that they cannot compete favourably because the market is skewed in favour of those who go around the agreed rules.

It is encouraging that the CMA has not just stopped at censuring the rogue trader but has gone the extra mile to recommend that the assets he accumulated from the irregular trading be seized and that he be charged in a court of law for his actions.

For a long time, rogue operators have gotten away with blatant violations, probably deriving their motivation from the fact that the wheels of justice grind slowly. The ball is now in the court of the prosecutor to expedite and conclude the trial and the responsibility is also on the Assets Recovery Agency to seize all the trader’s ill-gotten wealth.