On establishing facts of manipulation in the market for ordinary shares of PJSC GC Rollman during trading at PJSC Moscow Exchange

The Bank of Russia established the fact of manipulation in the market for ordinary shares of PJSC GC Rollman (hereinafter, the ‘Shares’) during trading at PJSC Moscow Exchange over the period from 19 December 2012 to 20 May 2016.

During the inspection, the Bank of Russia found that the deals for the purpose of manipulation of the market of the Shares were conducted by two groups of persons that are clients of various professional securities market participants.

The first group included 7 individuals: Yuri V. Arkhangelsky, Fedor N. Burchikhin, Anton A. Vorobiev, Olga M. Vorobieva, Andrei A. Gusev, Denis I. Mariechkin, and Natalia A. Stavnichuk; and 2 legal entities: CJSC PG Edelveis and LLC KC Magistr affiliated with PJSC GC Rollman. The second group included one legal entity, LLC EUROFINANCE, and 10 individuals: Natalia A. Adylova, Yulia Y. Buchinskaya, Mikhail M. Voevodin, Aleksei G. Golikhin, Viktoria N. Degteva, Dmitri A. Romanov, Sergei Yu. Savuk, Nikita S. Sorokin, Dmitri V. Stremedlovsky, and Maksim A. Tolmachev.

During the specified period, deals conducted by the above persons accounted for over 90% of the total volume of the Shares trading. These persons conducted deals that led to significant deviations of the demand, supply, price and/or volume of trading in Shares for the most part with each other by prior agreement. These activities led to establishing an artificial market for the Shares and misinforming third parties with regard to their price. Thus, during the period in question, individuals and legal entities affiliated with PJSC GC Rollman were at least one of the parties to 63% of on-exchange trading with the Shares.

The appearance of an active market for the Shares allowed CJSC PG Edelveis affiliated with PJSC GC Rollman to sell a part of the issue of the Shares to various individuals, and also to use the Shares as collateral under loan agreements.

It should be noted that a number of deals with Shares made between N.A. Stavnichuk and F.N Burchikhin had a market-maker status and were recognised by the exchange as deals conducted by a professional securities market participant performing its obligations under a respective agreement. However, the actions of these persons are not subject to exceptions stipulated in Clauses 1 and 3 of Part 3 of Article 5 of Federal Law No. 224-FZ ‘On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation’ (hereinafter referred to as the ‘Federal Law’). N.A. Stavnichuk and F.N Burchikhin, being clients of a professional securities market participant, were not a party to a market maker agreement and their activities could not be aimed at supporting the price of the Shares under such an agreement.

The activities of the persons included in both groups constitute manipulation of the market for the Shares in accordance with Clauses 2 and 6 of Part 1 of Article 5 of the Federal Law.

The measures, including those prescribed by the Code of Administrative Offences of the Russian Federation, were taken against the persons who participated in manipulating the market for the Shares.

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05.07.2017 00.00.00