Based on an investigation, the Bank of Russia has identified market manipulation in transactions involving ordinary shares of PJSC PIK-specialized homebuilder. The transactions were carried out by LLC PIK-INVESTPROECT and LLC PLAZA HOLDING between May 4, 2022, and May 25, 2022.
The findings indicate that during this period, both companies engaged in reciprocal transactions with the shares in collusion. These activities led to significant changes in prices, demand, supply, and trading volumes.
LLC PLAZA HOLDING's trading activity was solely focused on these shares with LLC PIK-INVESTPROECT acting as the main counterparty. Orders were placed at short intervals where LLC PIK-INVESTPROECT acted as the buyer and LLC PLAZA HOLDING as the seller for identical volumes within a trading day. Iceberg orders placed by LLC PLAZA HOLDING meant most shares could not be viewed by other participants immediately but appeared gradually in the order book. Consequently, the total volume of shares traded reciprocally within a day was comparable; positions held by both companies were symmetrical and mirrored each other’s actions.
The trading scheme used throughout this period distorted trading indicators and misled investors about the true liquidity of these shares. The relationship between these companies suggested signs of collusion.
These activities are classified as market manipulation under Clause 2 of Part 1 Article 5 of Federal Law No. 224-FZ dated July 27, 2010: "On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation."
As such, both LLC PIK-INVESTPROECT and LLC PLAZA HOLDING violated prohibitions against market manipulation stated in Part 2 Article 6 of Federal Law No. 224-FZ.
In response to these findings, binding orders have been issued by the Bank of Russia directing both companies to cease such violations going forward.
"The reference to the Press Service is mandatory if you intend to use this material."