FCA issues prohibition order against former Moore Capital trader

Maria Nikolova

The order prohibits Julian Rifat from performing any function in relation to any regulated activities carried on by an authorised or exempt person, or exempt professional firm.

The UK Financial Conduct Authority (FCA) today issued an order, pursuant to section 56 of the Act, prohibiting Julian Rifat from performing any function in relation to any regulated activities carried on by an authorised or exempt person, or exempt professional firm. The prohibition order takes effect from today, September 1, 2020.

Mr Rifat committed offences involving dishonesty. He pleaded guilty on 7 November 2014, at Southwark Crown Court, to insider dealing, contrary to section 52(1) of the Criminal Justice Act 1993; and was sentenced on 19 March 2015 to 19 months’ imprisonment, fined £100,000 and ordered to pay costs of £159,402.

Mr Rifat’s offences consisted of eight occasions of insider dealing over a six-month period from 1 June 2009 to 24 November 2009, when he was an approved person. At the time of the offending Mr Rifat was employed as a senior trader by Moore Europe Capital Management, LLP (“Moore Capital”) where he had worked from 19 June 2008. He was a trader, head of European equity sales trading and also in charge of risk management at Moore Capital.

Moore Capital is a US-based hedge fund and Mr Rifat was based in their London office. They are a major investor in the market and they would be approached frequently about large scale transactions ahead of any public announcement. The price sensitivity of the fact and the reason for those transactions was therefore both obvious and explicit, particularly to someone in Mr Rifat’s position.

Prior to each of the eight occasions of insider dealing over the six-month period, Mr Rifat discussed the transactions. These discussions included the formal recognition that he was about to receive price-sensitive information leading to him being “wall-crossed”, and in fact in each instance thesubsequent public announcement of the price-sensitive event did move the market. This “wall-crossing” process entailed a script being read aloud or supplied before the price-sensitive information was supplied. On each occasion Mr Rifat confirmed to his counterpart that he was aware that he was “over the wall”.

Mr Rifat did not deal in his own name or execute any trading himself, but dealt via a professional intermediary, a self-employed stockbroker, also approved by the Authority, who placed the trade with others. After Mr Rifat had been ”wall-crossed”, he would call or text his intermediary within a short period of time so as to provide the inside information before a public announcement was made or an offer was withdrawn. The value across all eight of the trades, each of which was in the form of spread bets, was £285,000, from which Mr Rifat received a substantial sum.

It appears to the FCA that Mr Rifat is not a fit and proper person to perform any function in relation to any regulated activity carried on by an authorised person, exempt person or exempt professional firm. His conviction demonstrates a clear and serious lack of honesty and integrity such that he is not fit and proper to perform regulated activities, the regulator concluded.

Read this next

Retail FX

Interactive Brokers adds 680k accounts, daily trades hit two-year high

Interactive Brokers LLC (NASDAQ: IBKR) recorded 2.44 million daily average revenue trades (DARTs) in February 2024, marking a notable increase from the 2.2 million transactions observed in the previous month. This figure represents the highest DARTs reported in two years, indicating an 11 percent monthly surge and a 15 percent year-on-year rise.

Retail FX

Financial Commission adds Ultima Markets to membership roster

Multi-asset brokerage firm Ultima Markets, operating under the trading name Ultima Markets Ltd, has been granted membership of the Financial Commission, marking the most recent inclusion into the ranks of the self-regulatory organization.

Digital Assets

Bitcoin hits fresh record high amid massive short squeeze

Bitcoin has surged to record highs against both the euro and the pound, hitting €60,447 and £51,736 respectively on Coinbase. The primary cryptocurrency has seen an almost 7% increase in the past 24 hours.

Digital Assets

US court rules crypto trades as securities in Coinbase case

A US court ruled that trading crypto assets on platforms like Coinbase constitutes securities transactions.

Market News

Weekly Data: Oil and Gold: Brief Review before the NFP

This preview of weekly data looks at USOIL and XAUUSD where economic data coming up later this week are the main market drivers for the near short-term outlook.

Institutional FX

FXSpotStream reports lower volumes for February 2024

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for February 2024, which moved lower on a monthly basis.

Fundamental Analysis

Global FX Market Summary: EUR, USD, Gold March 4th,2024

US Dollar Weakness: The US Dollar (USD) is currently struggling to gain strength due to a combination of factors.

Technical Analysis

Bitcoin Technical Analysis Report 4 March, 2024

Bitcoin cryptocurrency can be expected to rise further toward the next resistance level 69000.00 (former multiyear high from January)


Finding Opportunity in Challenge: Why New Regulations Offer a Chance For Business to Get on Top of Data Management

The combination of CESOP, PSD3 and the PSR, has put businesses under new pressures. In this engaging article, André Casterman, Senior Advisor at Intix provides invaluable guidance on how companies can stay ahead of the curve.