UBS said the “unauthorized trading incident” that led to a $2.3 billion loss in its third quarter was not “sufficiently investigated” when detected.

The activity allegedly undertaken by former trader Kweku Abodoli involved stock index futures positions offset in UBS systems “with fictitious, forward-settling exchange-traded funds positions.”

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.