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Facts of market manipulation in on-exchange trading for LLC DERZHAVA-PLATFORMA exchange-traded bonds established

16 December 2022
Press release

The Bank of Russia established facts of market manipulation in on-exchange trading for the exchange-traded bonds of LLC DERZHAVA-PLATFORMA (ISIN: RU000A0ZYU54)1 (hereinafter, the Bonds) over the period from 23 November 2021 through 25 November 2021.

Brokerage accounts of relatives Vyacheslav N. Androsov and Nikolay A. Androsov were used to conduct transactions in collusion which caused significant deviations in Bond prices and trading volumes.

According to the investigation, these transactions are classified as market manipulation pursuant to Clause 2 of Part 1 of Article 5 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, Federal Law No. 224-FZ).

Thus, V.N. Androsov and N.A. Androsov violated the prohibition stipulated by Part 2 of Article 6 of Federal Law No. 224-FZ.

The Bank of Russia directed the professional securities market participant, whose clients are V.N. Androsov and N.A. Androsov, to suspend on-exchange transactions on orders submitted by the said clients via the Internet.

The regulator also sent binding orders to V.N. Androsov and N.A. Androsov to cease and desist from similar violations in the future. These persons are subject to administrative measures.

Moreover, the Bank of Russia decided to cancel the qualification certificate of a financial market specialist issued to V.N. Androsov.

 

1 At the moment, LLC Sfera Finansov (TIN 9704154846) acts as the issuer of the Bonds due to the reorganisation of LLC DERZHAVA-PLATFORMA.


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