The U.K. securities regulator has expelled Credit Suisse First Boston’s so-called “Flaming Ferraris” for attempting to manipulate the Swedish OMX index in December 1998.

The Securities and Futures Authority, now a subsidiary of the Financial Services Authority, has expelled James Archer, David Crisanti and Adrian Ezra from all positions they held on the SFA register.

The trio were employed by CSFB in London in the index arbitrage area of CSFB. Crisanti was the Global Head of Index Arbitrage, Ezra was responsible for European Index Arbitrage and Archer traded the Swedish arbitrage book.

They were nicknamed the Flaming Ferraris for their shared love of a cocktail involving a shot of Green Chartreuse, Grand Marnier and 100 proof rum, poured into a martini glass, ignited and sucked through a straw before the straw melts.

Along with the bans, they were required to pay a contribution to SFA’s costs. Archer and Ezra have each paid £50,000, and Crisanti has paid £100,000. Archer was found guilty of trying to manipulate the closing price of the OMX; and trading directly on the Swedish Stock Exchange’s computerized trading system without authorization. All three individuals were found guilty of deceiving the SSE and CSFB’s compliance department.

Archer used a mobile phone to place the manipulative order to hide his identity. He placed his sell orders directly on the SSE’s electronic trading system, although he was not authorized to do so. The SSE immediately queried the trades with Archer, who pretended he had traded with a genuine market counterparty rather than with himself. Archer also pretended to cancel the trade, thus reducing the manipulative effect of his trading on the share price.

The SSE was not satisfied with Archer’s explanations and made formal inquiries of CSFB about the trades. Archer, Ezra and Crisanti deliberately deceived CSFB and caused CSFB to send a false response to the SSE. Following further inquiries by the SSE and CSFB, Archer admitted that he had in fact tried to manipulate a price by trading with himself. Ezra and Crisanti then admitted their part in the subsequent deception. Shortly afterwards all three were dismissed by CSFB.