Facts of market manipulation in transactions with futures contracts established

The Bank of Russia has established facts of market manipulation in on-exchange trading for futures contracts based on the investigation findings.

In the period of 1–15 November 2022 Aleksandr V. Tarasov and Lyudmila A. Tarasova conducted reciprocal transactions with futures contracts for aluminium (ALMN-2.23), zinc (Zn-2.23, Zn-1.23), EUR/CAD exchange rate (ECAD-3.23), USD/TRY exchange rate (UTRY-3.23), and EUR/JPY exchange rate (EJPY-3.23).

In the period from 18 November 2022 to 8 December 2022 Parviz E. Kasymov and Faranghis I. Kasymova conducted reciprocal transactions with futures contracts for copper (Co-12.22), nickel (NI-12.22), Financials Index (FNI-12.22), Metals and Mining Index (MMI-12.22, MMI-3.23), Oil and Gas Index (OGI-3.23), and shares of the investment fund iShares Core EURO STOXX 50 UCITS ETF EUR (Dist) (STOX-6.23).

In the period from 28 November 2022 to 7 December 2022 Aleksandr V. Druz and Irina N. Druz conducted reciprocal transactions with futures contracts for Metals and Mining Index (MMI-12.22), Moscow Real Estate Index (HOME-3.23), Oil and Gas Index (OGI-12.22), investment units of Invesco QQQ ETF Trust Unit Ser.1 (NASD-6.23), SPDR S&P 500 ETF Trust (SPYF-9.23), ordinary shares of PJSC Aeroflot (AFLT-6.23), PJSC ALROSA (ALRS-6.23), PJSC GAZPROM (GAZR-3.25, GAZR-9.23), PJSC Magnit (MGNT-6.23), PJSC PIK SHb (PIKK-3.23), FGC UES, PJSC (RSTI-12.22), and Gazprom Neft PJSC (SIBN-3.23).

In the period from 19 December 2022 to 26 January 2023 Sergey M. Kopylov and Anastasia A. Kopylova conducted reciprocal transactions with futures contracts for Consumer Index (CNI-3.23, CNI-6.23), Financials Index (FNI-3.23, FNI-6.23), Metals and Mining Index (MMI-3.23, MMI-6.23), and Oil and Gas Index (OGI-3.23, OGI-6.23).

According to the investigation findings, the transactions of the above persons led to significant deviations in trading volumes and were conducted in collusion. This is confirmed by the similar parameters of the connection to brokerage accounts with a slight time difference, as well as the opening of almost symmetrical positions, so that the profit of one person was made through losses of another.

These actions are qualified 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, A.V. Tarasov and L.A. Tarasova, P.E. Kasymov and F.I. Kasymova, A.V. Druz and I.N. Druz, S.M. Kopylov and A.A. Kopylova violated the prohibition established by Part 2 of Article 6 of Federal Law No. 224-FZ.

A.V. Tarasov, L.A. Tarasova, P.E. Kasymov, F.I. Kasymova, A.V. Druz, I.N. Druz, S.M. Kopylov and A.A. Kopylova are subject to administrative proceedings for market manipulation. The Bank of Russia has sent binding orders to the above individuals to cease and desist from similar violations in the future.

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