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Facts of market manipulation during securities trading by Dmitry Sharchilev established

17 March 2021
Press release

The Bank of Russia has carried out an investigation for compliance with the requirements of Federal Law No. 224-FZ, dated 27 July 2010, ‘On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation’ (hereinafter, the Federal Law) and established facts of market manipulation over the period of 2011–2017 in on-exchange trading for over 60 securities by Dmitry V. Sharchilev.

Dmitry Sharchilev had access to and issued orders for securities transactions on the following brokerage accounts (hereinafter collectively, controlled accounts):

  • his own account;
  • an account of Aviafinans LLC (TIN 7731508709) (access based on the power of attorney);
  • accounts of Management Company Analytical Centre JSC (TIN 7714243273) (hereinafter, the Management Company) as the trustee of the pension savings and pension reserves of JSC NSPF DIF (access as Deputy Director General — Head of the Asset Management Department of the Management Company).

As a result of these circumstances, Dmitry Sharchilev regularly conducted coordinated operations on the controlled accounts, including those causing significant deviations in the trading parameters of such securities, to achieve a positive financial result on his own account by using assets in the accounts of the Management Company and Aviafinans LLC in order to form predictable price movements in on-exchange trading for certain securities.

As a result of these operations on his own brokerage account, Dmitry Sharchilev obtained undue income.

According to the findings of the investigation, Dmitry Sharchilev’s operations qualify as market manipulation according to Clause 2 of Part 1 of Article 5 of the Federal Law, which is a violation of the prohibition stipulated by Part 2 of Article 6 of the Federal Law.

The Bank of Russia has sent orders to the persons involved in market manipulation to cease and desist from similar violations in the future.

The Bank of Russia has sent the documents on the investigation to the law enforcement bodies.


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