A former director of a City contracts for difference broker has been charged on suspicion of insider dealing, amidst allegations that he abused his position to gain an advantage over other investors and his own clients ahead of several key takeover moves.

Following FSA investigations into the conduct of James and Miranda Sanders, the husband and wife team involved in the allegations surrounding the Blue Index CFD broker from 2006-08, both have been charged with offences under insider dealing laws, along with several other employees of the broker, in the latest scandal to hit the City.

It is alleged that the offences were committed ahead of some seven successful takeover bids, mainly concerning US-based technology companies, in which the pair are suggested to have unlawfully traded off the back of unfairly gained information that was not readily available to the markets.

A recognisable name in the CFD industry, the news of alleged criminal activity at the top of Blue Index has sent shockwaves through trading spheres, underlining the importance of ongoing scrutiny from the FSA while highlighting the risks associated with choosing an unscrupulous broker.

While there are no allegations of mistreatment of client funds, the insider dealing charges, if founded, show that the potential for market distortions and indirectly unfair treatment at the hands of CFD brokers remains an ever-present concern.

Both Mr. and Mrs. Sanders, and the former employees concerned have been released on bail, to appear before magistrates in the coming days.