UK arrests alleged insider traders

Deutsche Bank and Moore Capital employees investigated by financial authorities.

    No charges have yet been laid in the largest insider trading investigation to date [AFP]

    "It is believed that the city professionals passed inside information to traders [either directly or via middlemen] who traded on this information and have made significant profits as a result," the FSA said in a statement.

    Market abuse

    A spokesman for Deutsche Bank said "we are co-operating with authorities as they look into this matter".

    Industry sources named Julian Rifat, an equity trader from Moore Capital; Martyn Dodson, a managing director at Deutsche Bank and Graeme Shelley, a trader at brokerage Novum Securities as among the people questioned.

    Clive Roberts, the head of European sales at BNP Paribas's partly-owned Exane unit -was also said to be among those detained.

    Britain's Telegraph newspaper said west London businessman Iraj Parvizi, a director at fund Aria Capital, was also implicated.

    Moore Capital, a New York-based operation with a London unit, said the investigation of its employee did not involve any funds managed by the group.

    The FSA's investigation, carried out together with the serious organised crime agency (Soca), a special police unit, began in late 2007 as part of the regulator's attempt to clamp down on market abuse, fraud, and poor systems and controls.

    It has toughened up its enforcement policy after years of being criticised for not doing enough to stop market abuse.

    In September 2008, the FSA fined Steven Harrison, a former hedge fund manager at Moore Europe Capital Management, for market abuse, agreeing he would not work as a trader or fund manager for a year.

    Harrison had told a colleague to buy senior notes in chemicals maker Rhodia after
    having been given inside information from inside Credit Suisse, the FSA said at the time.

    In 2009, it levied a record level of fines and launched its first two successful criminal prosecutions.

    SOURCE: Agencies


    Interactive: Take a tour through divided Jerusalem

    Interactive: Take a tour through divided Jerusalem

    Take a tour through East and West Jerusalem to see the difference in quality of life for Israelis and Palestinians.

    Stories from the sex trade

    Stories from the sex trade

    Dutch sex workers, pimps and johns share their stories.

    Inside the world of India's booming fertility industry

    Inside the world of India's booming fertility industry

    As the stigma associated with being childless persists, some elderly women in India risk it all to become mothers.