"Nordnet has continued to offer its customers the service for several years, despite the bank previously noting that it did not meet regulatory requirements. This justifies the high sanction fee," says Pär Hemmingsson, Councilor of the Court of Appeal, in a press release.
The judgment can be appealed to the Supreme Administrative Court.
It was in May 2022 that the Swedish Financial Supervisory Authority decided to give the online broker a sanction fee of SEK 100 million after so-called "naked shorting" of shares.
Nordnet appealed the decision and during the summer the case ended up with the Administrative Court, which decided to uphold the decision.
Short selling: selling a stock that you do not own with the aim of making money on the stock even if the stock price falls. Instead, the seller has borrowed, or ensured that the stock can be borrowed, before the short sale is carried out.
Naked short selling: At the time of the short sale, the seller has not borrowed the share or ensured that the share can be borrowed, which is prohibited.
Source: Administrative Court
