LME agrees settlement with broker Sucden with a penalty of $125,460

LONDON (Reuters) - The London Metal Exchange (LME) said on Wednesday it had agreed a settlement with commodities broker Sucden Financial Limited (SFL) in which Sucden would pay a financial penalty of 100,000 pounds ($125,460).

The exchange, the world's oldest and largest market for industrial metals, said the settlement was agreed after an investigation by the LME which commenced as a result of trading activity which took place on May 3, 2019 and which coincided with the Zinc Kerb Ring trading session of the same day.

"During the course of the investigation, the LME concluded that between at least May 3, 2019 and March 2021, SFL failed to organise and control its internal affairs responsibly and effectively with appropriate and adequate risk management systems to deter potential instances of market abuse," the LME said in a notice.

Sucden was open and cooperative with the LME during the investigation and has also already enhanced its risk management systems and controls to deter potential instances of market abuse with regards to its LME business, the exchange said.

Sucden did not immediately reply to a request for comment.

($1 = 0.7971 pounds)

(Reporting by Polina Devitt; Editing by Alison Williams, Kirsten Donovan)