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UK regulator bans former broker for dishonesty over "wash" trades

LONDON, May 29 (Reuters) - Britain's markets regulator said on Wednesday it had banned a former employee of brokerage Martins Brokers for dishonesty and lacking integrity over so-called "wash" trades.

Wash trades are risk-free trades with the same party that cancel each other out, serve no legitimate purpose but generate brokerage payments.

Terry Farr, a broker who was acquitted by a jury in 2016 over his alleged role in the Libor (London interbank offered rate) scandal, arranged nine such trades in an effort to bolster his team's bonus pool, the Financial Conduct Authority (FCA) said.

(Reporting by Simon Jessop, editing by Kirstin Ridley)