On establishing facts of insider trading by E.T. Marlamov
The Bank of Russia has established that a client of JSC FINAM (AO Finam), Elvis T. Marlamov, systematically used insider information of JSC FINAM to perform trades in the markets of 29 liquid securities at the Moscow Exchange within the period from 8 June 2016 to 22 February 2018.
During the investigation, the Bank of Russia established that E. Marlamov is the author of a number of trading strategies used by JSC FINAM’s clients as part of the ‘Autofollow’ service.
Using the information in his subscribers’ orders on price parameters and order direction (buy/sell) that would affect the market price of securities and analysing the market reaction to such orders, E. Marlamov repeatedly conducted trades across his own isolated accounts (the accounts without subscribers opened mostly with JSC FINAM) with the same securities. From 8 June 2016 to 22 February 2018, this activity allowed E. Marlamov to receive a substantial profit.
In accordance with the the legislation of the Russian Federation on countering the misuse of insider information and market manipulation, the information used by E.Marlamov to conduct such trades was qualified as insider information of the professional securities market participant JSC FINAM. E. Marlamov systematically violated the prohibition set forth in Article 6, Section 1.1 of Federal Law No.
In accordance with the Criminal Code of the Russian Federation, the profit gained by E. Marlamov from securities transactions conducted using insider information is qualified as excessively large profits, which creates prerequisites for a criminal qualification of E. Marlamov’s activities as provided by law.
The Bank of Russia also notices that E. Marlamov’a activities can be viewed as misconduct with respect to subscribers to his trading strategies who took a decision to join the service expecting it would comply with legal and ethical standards.
In line with the Bank of Russia order, to prevent illegal activity, E. Marlamov was suspended from conducting securities transactions at the Exchange.
The Bank of Russia will send relevant investigation materials to the law enforcement authorities and impose other enforcement measures with respect to E. Marlamov.
The reference to the Press Service is mandatory if you intend to use this material.