Russian c-bank detects market manipulation by Prokhor V.G. and Alpari

Maria Nikolova

From August 3, 2015, to December 25, 2015, Prokhor V.G. and Alpari manipulated the market of common stock of certain companies, such as Rostelecom.

The Central Bank of Russia has just announced that Prokhor Viktor Georgievich and Alpari (Kaliningrad, individual taxpayer number 3904602244) had manipulated the market of certain securities traded on the Moscow Exchange.

The illicit practices were employed from August 3, 2015, to December 25, 2015 and affected the shares of companies such as Rostelecom. The scheme worked the following way: Prokhor V.G. used to acquire a certain package of shares from Alpari and then made orders in the opposite direction with the same amount of shares at a higher price. The time lag between the transactions was minimal and the orders were submitted from the same personal computer.

The regulator notes that during the period in question, Prokhor V.G. and Alpari acted as main counteragents for each other for the share transactions in question. During its investigation, the central bank found that Prokhor V.G. was an authorized representative and beneficiary co-owner of Alpari and was trading on the Moscow Exchange from Alpari’s account and from his own account.

The trades in question resulted in substantial changes in the exchange parameters.

As a result of the trades, Prokhor V.G. obtained a positive financial result at the detriment of Alpari. The central bank notes that these actions could have led to optimization of the tax burden on the company. Information about the actions of Prokhor V.G. and Alpari was sent to the Russian Federal Tax Service.

The parties in the manipulation have violated the Federal Law on illicit use of insider information and market manipulation.

The regulator notes that it took measures following the completion of the investigation but did not elaborate on the nature of these measures.

Read this next

Digital Assets

Ripple and Lithuanian FINCI partner for XRP-based payments

Ripple is looking to expand its presence in Europe, forming a new partnership with Lithuanian electronic money institution FINCI.

Digital Assets enables Shopify merchants to accept crypto payments has integrated with Canadian e-commerce giant Shopify so global merchants can accept crypto payments and save on processing fees through cash-final settlements.

Institutional FX

FX volume drops 13pct at CLS Group in April 2022

FX settlement specialist CLS Group today reported that the executed volumes of currency trading on its platforms were notably down in April.

Crypto Insider, Opinion

Regulation: The Gold-Standard for Crypto-Assets

When the US supervisory authority SEC allowed an investment product referencing Bitcoin futures to be traded for the first time last October, this was widely perceived as a signal that cryptocurrencies had finally become established as an asset class.

Executive Moves

Solid hires FX industry veteran Darren Barker for multi-bank ECN’s business development

His curriculum vitae includes former roles at Cantor Fitzgerald, Sucden Financial, R.J. O’Brien, Jefferies, Natixis, Unicredit, J.P. Morgan, Raiffeisen, RBS International, UBS, Deutsche Bank, and Citi. 

Inside View

Mihails Safro, xpate CEO: Tips sellers need to know to overcome compliance obstacles

The unprecedented growth of e-commerce changed shopping dramatically last year. Many sellers suddenly faced a rapidly growing number of customers who had to stay home during the lockdown. When some clients adopted Netflix and Spotify as part of a daily routine, others ventured into online business. Robinhood alone saw a whopping 6 million rise in user numbers in 2 months. 

Institutional FX

BMLL delivers Level 3 data to Kepler Cheuvreux for order book analytics and algo performance

The solution covers more than 6.5 years of harmonised historical data from 65 venues and combines it with easy to use APIs and analytics libraries in a secure cloud environment. 

Digital Assets

Crypto Is An Invaluable Tool In The Fight Against Financial Oppression  

Crypto has proven itself to be much more than just a hot investment. Indeed, some say it’s poised to play a critical role in the future of finance

Executive Moves

Parameta appoints Head of Benchmark and Indices with a focus on ESG and rates

The firm said building out its benchmarks & indices offering will now be a core priority, with a particular focus on the ESG and rates space.