Former Deutsche Bank trader in serious trouble for pocketing £3.4 million by manipulating markets
The Russian central bank is investigating the activities of former Deutsche Bank trader Yuri Khailov, who is accused of making a series of 8 trades between 2013 and 2015 on the Moscow Exchange that constitute market manipulation
The pledge to make individual interbank traders personally accountable for manipulating markets instead of purely censuring their employees continues as Russia’s central bank has today claimed that Yuri Khilov, whilst acting on behalf of the London operations of Deutsche Bank, which until this year was the world’s second largest FX dealer with 14.5% of the world’s FX volume going through its books, which has reduced this year to just 7.9%.
Mr. Khilov now finds himself accused of carrying out 300 billion rubles worth of trades in eight listed securities on the Moscow Exchange between himself and his relatives between January 2013 and January 2015, in which, according to the central bank, he bought and sold the assets within a few minutes in order to generate a profit.
A commercial statement was provided today by Deutsche Bank on the matter, saying “Deutsche Bank has conducted an internal investigation into the activities of the former employee and provided the market regulator with its results. We remain committed to working to detect and combat misconduct activities and will continue to closely cooperate with the authorities on such matters.”
The investigation by the central bank, which has now passed its findings onto law enforcement, took place with help from Germany’s financial markets regulator, BaFIN.
It is important to note that this particular investigation is a different matter and completely separate to another probe involving Deutsche Bank’s Moscow office and potential weaknesses in the safeguards surrounding so-called mirror trades, essentially in which one trading party mimics the actions of another.