On establishing fact of manipulation in the market for ordinary shares of PAO MRSK Severnogo Kavkaza (IDGC of Northern Caucasus, PJSC) and preferred shares of PAO Permskaya Energosbytovaya Kompaniya (Perm Energy Supplying Company, PJSC)
The Bank of Russia established that Kirill Yu. Kotov and Yulia A. Kotova who have family relations were involved in manipulating the market for shares listed on PJSC Moscow Exchange during trading on 27 July 2015.
The investigation revealed that K. Kotov in collusion with Yu. Kotova made transactions with ordinary shares of PAO MRSK Severnogo Kavkaza and preferred shares of PAO Permskaya Energosbytovaya Kompaniya (hereinafter referred to as the Shares) to transfer securities between their accounts in the anonymous trading mode on the PJSC Moscow Exchange. These actions resulted in considerable deviations in the trading volume of the Shares.
The said actions are qualified as market manipulation in the Shares under Article 5, Section 1.2 of Federal Law No.
The Bank of Russia took measures against the said individuals aimed at preventing similar violations in future.
In order to prevent market manipulation, the regulator draws market participants’ attention to the following.
For the purpose of executing trades between certain counterparties during organized trading there are specific trading regimes provided that include placing ‘address’ market orders.
. In compliance with Article 5, Section 1.2 of the Federal law, transactions with financial instruments, made between trading participants and (or) persons for whose account or on whose behalf they are made, may be qualified as market manipulation in the event the said trades are conducted at the agreed-upon conditions through anonymous orders addressed to all participants of organised trading.
The Bank of Russia urges trading participants to notify their clients about inadmissibility and consequences of such actions.
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22.08.2017 00.00.00