Swedish Broker Nordnet Fined Over Naked Short Selling of Stocks

Online savings platform Nordnet AB dropped 1.9% during early trading in Sweden after being fined 100 million kronor ($10.2 million) by the country’s financial watchdog for allowing naked short selling.

The Financial Supervisory Authority said the practice, whereby the Swedish bank offered some customers a large selection of shortable stocks without checking if there were enough shares available, led to “considerable risk” that clients were short selling without coverage, according to a statement.

Nordnet says it may now appeal the fine. The bank experienced only one incident of naked short selling and it regards the financial penalty as far too ...