Trader misused client orders in Moscow Exchange share transactions
Vladimir Valerievich Naumov misused insider information from client orders to trade shares through his personal account, the Bank of Russia said on October 21, 2026. The regulator ordered him to cease and desist from similar violations.
Client orders benefited personal positions
The Bank of Russia established that Naumov misused insider information in share transactions on Moscow Exchange from January 16, 2023 to March 29, 2024.
As Senior Trader of the Equity Trading Division at IC VELES Capital LLC, he had access to client orders and responsibility for executing them.
That role made him an insider of the company.
Naumov used information about those orders to conduct transactions through his personal brokerage account, taking clients' trading activity into account.
The client transactions were large enough to change market prices for the shares and trigger positive mark-to-market revaluations of his positions.
The regulator based its findings on an investigation.
Binding orders and prevention duties
The regulator classified Naumov's actions as a violation of Clause 1 of Part 1 of Article 6 of Federal Law No. 224-FZ, which prohibits the use of insider information.
It sent him binding orders to cease and desist from similar violations.
It also urged issuers and other legal entities listed in Part 1 of Article 11 of that law to fulfill their duties to prevent, identify and suppress insider-information misuse.
Those duties include protecting the information and ensuring its confidentiality.
Confidentiality extends to client orders
The case concerns misuse of client-order information obtained through trading responsibilities.
The identified benefit was a positive revaluation of personal positions as client transactions moved prices.
The regulator also reiterated firms' obligations to prevent and detect such misuse.