According to its Press Service, the Central Bank of Russia found that Vladimir Valerievich Naumov misused insider information when trading shares on Moscow Exchange between Jan. 16, 2023, and March 29, 2024. The central bank determined that his conduct violated the statutory ban on using insider information and issued binding orders requiring him to cease and desist from similar violations. As senior trader in the Equity Trading Division of IC VELES Capital LLC, Naumov had access to client orders and was responsible for executing them. He used that information to trade through his personal brokerage account, taking clients’ trading activity into account. The client transactions were large enough to move share prices and produce positive mark-to-market revaluations of his positions. The central bank also urged issuers and other legal entities covered by the relevant statutory obligations to prevent, identify and suppress misuse of insider information, including by protecting it and ensuring its confidentiality.
Central Bank of Russia finds VELES Capital trader misused client order information and issues cease and desist orders
According to the Central Bank of Russia’s Press Service, an investigation found that IC VELES Capital LLC senior trader Vladimir Valerievich Naumov used confidential client order information to trade shares through his personal account between Jan. 16, 2023, and March 29, 2024. Client transactions moved prices in ways that increased the marked value of his positions. The central bank issued binding cease and desist orders and urged entities subject to insider information obligations to prevent misuse and protect confidentiality.