Brazil Securities Commission rejects settlement proposal in alleged price manipulation case

The Brazil Securities Commission (CVM) rejected a settlement proposal from four investors in an administrative enforcement proceeding concerning alleged price manipulation. The proceeding was opened to investigate a possible violation of Article 3 of CVM Resolution 62. The decision followed a finding of a legal impediment and the Settlement Committee’s assessment that an agreement was neither appropriate nor advisable. The committee cited the alleged seriousness of conduct involving thousands of strategies and trades over more than two years, related proceedings under way at the CVM, the possibility of continuing violations and limited procedural efficiencies because only some of the accused had proposed a settlement.