16.02.2016, 01:25
On Affirmative Proof of Market Manipulation by Zemli Podmoskovya
OREANDA-NEWS. The Bank of Russia has established recurrent and prolonged manipulations in the closed-end unit investment fund market in Moscow Exchange trading related to Zemli Podmoskovya Rental Closed-end Unit Investment Fund (further referred to as 'Zemli Podmoskovya'), in the period between 2013 and 2014.
Zemli Podmoskovya-related trading operations in in the above period were fully based on prearranged related party transactions between IC DC Capital LLC and Univer Capital LLC. In the period under study, over 70% of transactions with Zemli Podmoskovya shares were concluded between these parties.
Concurrently at their own expense, IC DC Capital LLC and Univer Capital LLC committed nonstandard transactions with Zemli Podmoskovya shares, with alternate purchase and sale bids being made with a short time lag, the volumes and prices coinciding - which is a clear sign of prearrangements made by the above-mentioned parties. These transactions were meant to maintain the market value of Zemli Podmoskovya shares, creating the appearance of activities in the unit investment fund market. The shares were used by a limited number of entities, in particular, by the financial institutions, to intentionally misrepresent financial statements.
It stands to mention that Univer Capital LLC, in the course of the above transactions, was acting as a market-maker, which comes within the purview of Paragraph 3, Part 3, Article 5 of Federal Law No 224-FZ, dated 24.07.2010, 'On Countering Illegal Use of Insider Information and Market Manipulation, and On Amendments to Individual Legislative Acts of the Russian Federation' (further referred to as 'the Federal law').
However, IC DC Capital LLC action consisting in the conduct of transactions, within the period under study, which resulted in substantial deviations in the price / volume of trading in these shares, is found to be market manipulation as defined in Paragraph 2, Part 1, Article 5 of the Federal law.
Market manipulation is flagrant violation of the Russian Federation legislation.
Having regard to the above, the Bank of Russia decides that a securities market participant license for dealer activities issued to IC DC Capital LLC be revoked.
IC DC Capital LLC officers involved in the transactions treated as market manipulation with Zemli Podmoskovya shares, shall have their financial market qualification certificates revoked.
Zemli Podmoskovya-related trading operations in in the above period were fully based on prearranged related party transactions between IC DC Capital LLC and Univer Capital LLC. In the period under study, over 70% of transactions with Zemli Podmoskovya shares were concluded between these parties.
Concurrently at their own expense, IC DC Capital LLC and Univer Capital LLC committed nonstandard transactions with Zemli Podmoskovya shares, with alternate purchase and sale bids being made with a short time lag, the volumes and prices coinciding - which is a clear sign of prearrangements made by the above-mentioned parties. These transactions were meant to maintain the market value of Zemli Podmoskovya shares, creating the appearance of activities in the unit investment fund market. The shares were used by a limited number of entities, in particular, by the financial institutions, to intentionally misrepresent financial statements.
It stands to mention that Univer Capital LLC, in the course of the above transactions, was acting as a market-maker, which comes within the purview of Paragraph 3, Part 3, Article 5 of Federal Law No 224-FZ, dated 24.07.2010, 'On Countering Illegal Use of Insider Information and Market Manipulation, and On Amendments to Individual Legislative Acts of the Russian Federation' (further referred to as 'the Federal law').
However, IC DC Capital LLC action consisting in the conduct of transactions, within the period under study, which resulted in substantial deviations in the price / volume of trading in these shares, is found to be market manipulation as defined in Paragraph 2, Part 1, Article 5 of the Federal law.
Market manipulation is flagrant violation of the Russian Federation legislation.
Having regard to the above, the Bank of Russia decides that a securities market participant license for dealer activities issued to IC DC Capital LLC be revoked.
IC DC Capital LLC officers involved in the transactions treated as market manipulation with Zemli Podmoskovya shares, shall have their financial market qualification certificates revoked.
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