Facts of manipulation in markets for certain securities of JSC IC Eurofinansy, LLC IC Sparta-Finans and their clients, as well as JSC MC Eurofinansy
The Bank of Russia has established facts of manipulation in the markets for the bonds of LLC Eurofinansy-Nedvizhimost (ISIN: RU000A0JR6N9, RU000A0JR6P4, RU000A0JRVM0, RU000A0JVWE7), LLC FSI (ISIN: RU000A0JVUG6) (hereinafter collectively and individually, the Bonds), as well as the units of CUIF (closed-end unit investment fund) of bonds Investitsii Regionov (previously, CUIF of real estate Podmoskovnye Investitsii, ISIN RU000A0JTCM6), CUIF of bonds Konservator (previously, CUIF of real estate Pervyi Stroitelnyi, ISIN: RU000A0JTCL8), and CUIF of bonds Bolshaya Strana (previously, CUIF of real estate Troitskoye Zarechiye, ISIN: RU000A0JTCN4) (hereinafter collectively and individually, the Units) at exchange trading in the period from 26 December 2012 until 10 September 2019.
The transactions qualified as manipulation in the Bonds markets were carried out at anonymous exchange trading by JSC IC Eurofinansy (TIN: 7701008530), which acted in its own interests and at its own expense, and by its clients: Finniss Investments Limited (incorporated in accordance with the legislation of the Republic of Cyprus, registration certificate No. HE 78061), JSC Skangrafiks (TIN: 7718504769), LLC Fondpartner (TIN: 7717710247), LLC Eurofinansy-Nedvizhimost (TIN: 7705649816), LLC FSI (TIN: 7706786501), Sergey Zagorodnov, as well as JSC MC Eurofinansy (TIN: 7701548736), which acted both in its own interests and at its own expense, and under agreements of trust management of unit investment funds.
The transactions qualified as manipulation in the Units markets were carried out at anonymous exchange trading by the following clients of JSC IC Eurofinansy: Finniss Investments Limited (registration certificate No. HE 78061) and LLC Fondpartner (TIN: 7717710247), as well as LLC IC Sparta-Finans (TIN: 7705941698), which acted in its own interests and at own expense, and by its clients: LLC MC Global Capital (TIN: 7710561645), LLC Instant Invest (TIN: 7715725061), LLC Infinite Life (previously, LLS Aurora Capital, TIN: 7842492099), and LLC IC (Insurance Company) Instant Garant (TIN: 2801090169).
Over a long period of time, the same-type trading behaviour of the above-mentioned persons involved transactions with the Bonds and Units executed between them on the basis of bids made against matching counterbids with the minimum difference in time. Moreover, on certain trading days, the portion of transactions executed by the counterparties made up 100% of the total volume of trades in the respective Bonds and Units. Besides, the analysis of actions by the clients of JSC IC Eurofinansy established that in the majority of cases there was the matching of the parameters of connections to the software used for transmitting buy and sell bids. The manner of the transactions conducted by JSC IC Eurofinansy and its clients at anonymous exchange trading in the Bonds and Units proves the involvement of JSC IC Eurofinansy in the processes of submitting and executing the clients’ orders to carry out the transactions in collusion.
The conduct of the above-mentioned transactions with the Bonds and Units at exchange trading led to numerous and material deviations in the Bonds and Units trading parameters.
In accordance with Clause 2 Part 1 Article 5 of Federal Law No.
JSC IC Eurofinansy in the markets for the bonds of LLC Eurofinansy-Nedvizhimost (ISIN: RU000A0JRVM0, RU000A0JVWE7);
JSC Skangrafiks in the Bonds markets;
JSC MC Eurofinansy, which acted both in its own interests and at its own expense, and under agreements of trust management of unit investment funds, in the markets for the bonds of LLC FSI (ISIN: RU000A0JVUG6) and LLC Eurofinansy-Nedvizhimost (ISIN: RU000A0JR6N9, RU000A0JR6P4, RU000A0JVWE7);
LLC Fondpartner in the markets for the Bonds and Units of LLC Eurofinansy-Nedvizhimost (ISIN: RU000A0JR6N9, RU000A0JR6P4, RU000A0JRVM0);
Finniss Investments Limited in the Bonds and Units markets;
LLC FSI in the market for the bonds of LLC Eurofinansy-Nedvizhimost (ISIN: RU000A0JVWE7);
Sergey Zagorodnov and LLC Eurofinansy-Nedvizhimost in the market for the bonds of LLS FSI (ISIN: RU000A0JVUG6);
LLC IC Sparta-Finans, LLC Instant Invest, LLC Infinite Life, JSC MC Global Capital, and LLC IC Instant Garant in the Units markets.
Therefore, the above persons breached the ban imposed by Part 2 Article 6 of the Federal Law.
The Bank of Russia has taken administrative measures against the persons involved in the manipulation of the Bonds and Units markets, in order to prevent similar violations in the future.
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