Background of the Allegations
In 2015, EXANTE, a global brokerage firm licensed in the UK, Cyprus, Malta, and Hong Kong, faced misdirected fraud charges. The U.S. Securities and Exchange Commission (SEC) erroneously implicated EXANTE as a 'hedge fund' involved in an insider-trading scheme that exploited hacked financial news. This mischaracterisation overlooked EXANTE’s actual role as an execution-only broker managing over $2 billion in client assets.
Clarification and Compliance
EXANTE, committed to compliance, does not engage in proprietary trading. The firm clarified its position to the SEC, distinguishing itself from the hedge funds involved in the insider-trading allegations. Despite some trades related to the case being executed on EXANTE's platform, the firm adheres to strict regulations, ensuring compliance reporting, source of funds, and client money requirements.
Investigation and Outcome
The SEC's investigation linked the insider trading to a group of U.S. and EU hedge funds exploiting data breaches. EXANTE was mistakenly included in this list. After a thorough review, the SEC acknowledged EXANTE’s non-involvement in the alleged market manipulations, leading to the dismissal of all charges.
EXANTE's spokesperson stated, "We are pleased with the SEC's diligence in rectifying this matter and are committed to maintaining the highest standards of compliance."
Since being cleared of all allegations, EXANTE has focused on expanding its international presence, innovating its product offerings, and providing exceptional customer service, prioritizing client privacy. You can read more about EXANTE's SEC Case