The Financial Conduct Authority v Da Vinci Invest Ltd [2015] EWHC 2401 (Ch) (12 August 2015)

The Financial Conduct Authority v Da Vinci Invest Ltd [2015] EWHC 2401 (Ch) (12 August 2015)

The court found that the defendants, through the conduct of the traders, engaged in market abuse by 'layering' or 'spoofing' in CFD trading, giving false or misleading impressions as to supply, demand, or price on the LSE, contrary to section 118(5) FSMA. The FCA was entitled to injunctions and financial penalties under sections 381 and 129 FSMA. The procedural and jurisdictional objections were rejected. The activities of the traders were attributable to the relevant corporate defendants.

Citation
[2015] EWHC 2401 (Ch)
Parties
Claimant: The Financial Conduct Authority; First Defendant: Da Vinci Invest Limited; Second Defendant: Da Vinci Invest PTE Limited; Third Defendant: Mineworld Limited; Fourth Defendant: Szabolcs Banya; Fifth Defendant: Gyorgy Szabolcs Brad; Sixth Defendant: Tamas Pornye
Jurisdiction
England and Wales
Judgment Date
12 August 2015
Procedural Posture
Civil (market Abuse, Financial Penalties, Injunction) / Final Judgment After Trial
Outcome
Claim allowed. Injunctions and financial penalties granted against relevant defendants.
Legal Topics
Market Manipulation, Contracts for Differences (cfds), Layering/spoofing, Financial Penalties, Injunctions, Jurisdiction Under FSMA
Financial Regulation Market Abuse Securities Law Market Manipulation Contracts for Differences (cfds) Layering/spoofing Financial Penalties Injunctions +1 more

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Parties

The Financial Conduct Authority

Claimant

Da Vinci Invest Limited

First Defendant

Da Vinci Invest PTE Limited

Second Defendant

Mineworld Limited

Third Defendant

Szabolcs Banya

Fourth Defendant

Gyorgy Szabolcs Brad

Fifth Defendant

Tamas Pornye

Sixth Defendant

Procedural Posture

Civil (market Abuse, Financial Penalties, Injunction) / Final Judgment After Trial

Legal Issues

  1. 1 Whether the defendants engaged in market abuse contrary to section 118(5) FSMA
  2. 2 Whether the activities of the traders can be attributed to the corporate defendants
  3. 3 Whether the FCA is entitled to injunctions and/or financial penalties under sections 381 and 129 FSMA

Ratio Decidendi

The court found that the defendants, through the conduct of the traders, engaged in market abuse by 'layering' or 'spoofing' in CFD trading, giving false or misleading impressions as to supply, demand, or price on the LSE, contrary to section 118(5) FSMA. The FCA was entitled to injunctions and financial penalties under sections 381 and 129 FSMA. The procedural and jurisdictional objections were rejected. The activities of the traders were attributable to the relevant corporate defendants.

Court Disposition

Claim allowed. Injunctions and financial penalties granted against relevant defendants.

Orders

  • Final injunctions restraining market abuse granted against First, Third, Fourth, Fifth, and Sixth Defendants.
  • Financial penalties imposed on First Defendant (Da Vinci Invest Limited), Third Defendant (Mineworld Limited), and the individual traders (Fourth, Fifth, and Sixth Defendants).