BUSINESS LIVE: Ofgem fines Morgan Stanley for communication breakdowns in trading

BUSINESS LIVE: Ofgem fines Morgan Stanley for communication breakdowns in trading

The FTSE 100 opens at 8am. Companies with reports and trading updates today include Home REIT, Costain, and Mulberry. Read the Business Live blog of Wednesday 23 August below.

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M&S is heading for a return to the FTSE 100, but builder Persimmon is heading for an exit

Marks & Spencer appears to be returning to the FTSE 100 after a four-year absence as the turnaround continues to accelerate.

According to an update from index compiler FTSE Russell last night, the High Street company is on track to be one of four companies promoted to the blue-chip benchmark in next month’s quarterly rebalancing.

In the opposite direction, homebuilder Persimmon could go, which faces a downgrade to the FTSE 250 as the real estate market is battered by rising interest rates.

Ofgem fines Morgan Stanley for trading communication breakdowns

Energy regulator Ofgem has fined Morgan Stanley £5.4 million for failing to record and retain electronic communications relating to trading of wholesale energy products.

The fine applied for the period between January 2018 and March 2020.

Cathryn Scott, regulatory director of enforcement and emerging issues at Ofgem, said:

“This fine sends a strong message to market participants that they must comply with all REMIT rules or face enforcement action.

“It is unacceptable that MSIP failed to prevent electronic communications that could not be recorded or retained. It risks a significant compromise of the integrity and transparency of wholesale energy markets.

“We are pleased with the steps MSIP has taken to ensure that the breaches do not happen again.”

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