22 August, AtoZ Markets – The ripple effect of the recently uncovered $100 million trading fraud case discovered by the US SEC continues to take effect. One of the firms alleged to be involve in this scheme, EXANTE has complained of facing further hitch to its business operations outside and beyond the requirements and jurisdiction of SEC.
EXANTE is an investment services company that offers global multi-asset brokerage services on a wide range of financial markets, such as in the US, EU and Asia and specializes in providing Direct Market Access (DMA).
According to the charges from SEC on Exante Ltd., the authorities stated that EXANTE holds proprietary trading accounts at Interactive Brokers as well as Lek Securities, which were used in connection with the scheme to make trades resulting in approximately $24.5 million in illicit profits.
EXANTE responded: “The complaint completely misrepresents Exante, our business model, and the regulatory conditions we operate in. Exante has worked hard to build a strong brand respected by its peers that serves as a one-stop shop for all markets and instruments. The company was built for traders by traders and any illicit trading will not be tolerated.”
“Contrary to claims in the complaint as well as in the media, Exante has never been and is not a hedge fund. Our business model is to execute trades for our clients.”
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In the latest development on the case, the prime broker has complained of further difficulties resulting from this case, as EXANTE frozen client funds might be correlated with the SEC case. It said due to the current charges from the US SEC, some of its other counterparties have failed to respect client fund transfer requests. Hence, the Maltese broker has stated in an official statement in a Russian form that it will duly provide evidence of these claims to the court on the 24 of August, 2015. At this hearing, the court will therefore consider the requirements of the U.S Securities and Exchange Commission’s (SEC) restrictive measures on the company’s assets in the United States.
The entire case stems from allegations that EXANTE along with about 31 other defendants have taken part in a scheme to profit from stolen nonpublic information about corporate earnings announcements. Those charged include two Ukrainian men who allegedly hacked into newswire services to obtain the information and 30 other defendants in and outside the U.S. who allegedly traded on it, generating more than $100 million in illegal profits.
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