The Central Bank reported that it revealed the manipulation of several financial instruments on the Moscow Stock Exchange in 2012-2016: shares of UC Rusal, Polyus Gold, Levenguk, Media Holding, AESsel TPG, Glavtorprodukt, Vtorresursy, Platform "Yutinet.Ru", as well as shares of ZPIF shares "Finam - Information Technology" and ZPIF rent "Finam Capital Investments".
Some participants of the market, the Central Bank writes, made a lot of transactions with these instruments, which had no obvious economic meaning. This created the appearance of trading activity and liquidity and helped attract third-party investors, artificially form and maintain prices, the Central Bank points out.
Turnovers of manipulative transactions differed in different markets depending on the liquidity and quality of the instrument, a representative of the Central Bank told Vedomosti, but the volume of transactions was not of decisive importance. For unscrupulous players in the financial market, it was important to maintain the quotation at a certain level, he stressed.
Transactions were made by prior agreement, the Central Bank indicates, in each of the foreign legal entities associated with the company "Finam", as well as people who issued power of attorney to carry out transactions in the name of people working for Finam, writes the Central Bank. "Finam" at different times was also a market maker of these financial instruments. In particular, deals with shares of Levenguk, Media Holding, TPE Aessel were made by persons close to issuers, listing agents or Finam, the Central Bank said. Trading on the shares of TPG "Aessel" and "Platforms" Yutinet.Ru "(the latter is declared bankrupt), the stock exchange suspended in the first half of 2017.
"Finam" got acquainted with the data of the Central Bank, nothing is known about these data yet, Vladislav Kochetkov, the president-presiding of "Finam", told Vedomosti. The Central Bank, he assured, had not yet taken any measures in relation to the company. "Obviously, the company is not involved in any unscrupulous practices," says Kochetkov. Perhaps, he suggests, in this case, manipulation and marketmaking, including marketmakerism from client accounts, which has long been spread on the Russian market, are not completely separated. "We have not identified any actions that can be interpreted as market manipulation," he assures.
The Central Bank did not ask "Levenguk" about manipulating its shares, the company was not aware of the statement of the Central Bank, the financial director of the company, Ilya Perelygin, told Vedomosti.
In the trades with papers of Glavtorgoproduct and Vtorresursov, also related persons, including their top managers, wrote the Central Bank and called the activities of companies opaque. Transactions with securities, as well as their listing, were of a schematic nature and were carried out for the execution of intricate financial schemes, the Central Bank believes. "An example of an intricate scheme is the attraction of borrowed funds from third parties to provide shares for which an artificially high quotation was created through manipulation," the representative of the regulator explained.
The participants made deals with the shares of Platform Yutinet.Ru, UC Rusal and Polyus Gold by prior agreement, but did not have any relations with the issuers, the Central Bank considers: Finam asked for market maker applications on its own behalf and at the expense of customers, without due control for the actions of such customers. "
The Central Bank did not apply to the company, a Polyus Gold representative told Vedomosti.
A significant share of trading in shares of two ZPIF fell on the clients of the Finam itself, who had connections with the company, the Central Bank notes, the shares of these ZPIF were accounted for as part of Finam's own funds.
The Central Bank writes that the law on market manipulation is also applied to market makers, and recalls that attracting clients to perform the functions of a market maker can be regarded as unfair practice. "The Bank of Russia took measures against persons involved in the manipulation of the markets of these securities, to prevent the commission of similar violations in the future," - said in a press release.
If attempts to manipulate the market took place, Kochetkov points out, the evolution of business processes in the company made their repetition impossible.