On establishing fact of market manipulation with ordinary shares of public joint-stock company National Development Company
The Bank of Russia has established the fact of market manipulation in ordinary shares of PJSC National Development Company (hereinafter, the Shares) during trading on PJSC Saint Petersburg Exchange (hereinafter, the Exchange) from 23 March 2015 through 22 June 2016 (hereinafter, the Period).
JSC IC Eltra clients O. A. Zhukovskaya and R. O. Tarasova conducted matching transactions in the Shares during anonymous trading sessions over the Period. The nature and systematicity of these transactions bear the evidence of a prearranged agreement.
Transactions across the accounts held by the said individuals created the whole Share market on the Exchange within the Period: they accounted for 99% of the total transactions in the Shares and total Share trading volume with virtually no other Share market participants present. The transactions executed between O. A. Zhukovskaya and R. O. Tarasova resulted in substantial deviation in price and/or volume of the Share trading.
JSC IC Eltra performed as a marketmaker for the Shares within the Period. The Bank of Russia revealed during the course of the investigation that the transactions across Tarasova’s and Zhukovskaya’s accounts were actually executed by JSC IC Eltra employee A. V. Okhremenko based on letters of attorney issued by the said individuals.
Actions undertaken by A. V. Okhremenko, who executed transactions from the two accounts, were aimed at establishing an artificial Share market value and misleading a wide range of individuals and the regulator as regards the Share market liquidity and activity. Besides, during the Period, the Shares were registered as part of assets held by several insurance companies.
Pursuant to Article 5, Section 1.5 of Federal Law No.
It is important to note that since JSC IC Eltra clients who were not trading participants executed actions qualified by the Federal Law as market manipulation, they are not subject to seizures pursuant to Article 5, Section 3.3 of the Federal Law.
The Bank of Russia will initiate required enforcement actions against individuals involved in the Share market manipulation.
Earlier, the Bank of Russia took a decision to revoke licences of a professional securities market participant to carry out broker and dealer activity issued to JSC IC Eltra and to cancel the qualification certificate of a financial market specialist issued to A. V. Okhremenko in view of the involvement in manipulating the share market of OJSC Zhivoy Office.
При использовании материала ссылка на Пресс-службу Банка России обязательна.