Economy

Burford Alleges Share Manipulation Around Muddy Waters Attack

Burford Alleges Share Manipulation Around Muddy Waters Attack”

The company, now embroiled in a stand off with short seller Muddy Waters, said it had made regulatory authorities and criminal prosecutors aware of preliminary conclusions that showed evidence consistent with illegal market manipulation. We were very surprised by the share price fall, so felt we had to de-risk our position given how significant a proportion of our fund it was until we fully understand what was happening.

The City watchdog, the Financial Conduct Authority, said it was investigating the claims.

Both of these activities are illegal and have resulted in convictions previously, Burford Capital said.

Legal financier Burford Capital has alleged that its share price was illegally manipulated around the time of an attack by USA short-seller Muddy Waters.

Muddy Waters - founded by American Carson Block, who built up his reputation by alleging fraudulent activities at Chinese firms he targeted - said in response that the "only manipulation is that of Burford's return metrics, accounts and disclosures".

Burford pointed to evidence of "spoofing" and "layering". "That is wrong and that is illegal".

Burford chief investment officer Jonathan Molot told the BBC that its analysis of the market, at around the time that Muddy Waters made its criticism of the firm public, found that trades for more than half a million shares were cancelled. "They have nothing to do with us". We posted an innocuous tweet the day prior to publishing our report. Spoofing is the placement of a high volume of trading orders at a price equal to or better (i.e. lower) than the best-bid-best-offer price and the subsequent cancellation of these orders to move the price in a given direction without actually concluding any trades. "This is entirely normal and there is no market manipulation".

In 2015, the USA saw its first criminal conviction against former Panther Energy Trading boss Michael Coscia in a spoofing-related case and, in 2016, the FCA and DoJ coordinated their efforts in extraditing British trader Navinder Sarao - the "Hound of Hounslow" - to the U.S. where he admitted his part in triggering the 2010 Wall Street flash crash.

Burford's executives spent about two hours on Thursday addressing investors and analysts on a conference call, and responding to questions about the company's cash balance, use of fair value adjustments and the potential for a share buyback, among other things.

A spokesman for the U.K. Financial Conduct Authority said the regulator "is aware of these matters" and has been undertaking "wide-ranging enquiries", which will continue.

Gotham shorted London-listed Burford a year ago, though the firm doesn't have a short position in the company at the moment, according to the statement.

The following day, Burford hit back against the report, accusing Muddy Waters of peddling "factual inaccuracies" and "fallacious insinuations".



Like this

loading...
loading...

Latest


13 August 2019
Missy Elliott Finally Getting The Video Vanguard Award at MTV VMAs
Then, in May, she received an honorary doctorate degree from Berklee College of Music in Boston, alongside Justin Timberlake . The ceremony which airs live on MTV on August 26, will be Missy's first time performing live in over a decade.

13 August 2019
Police warn public to stop mocking suspect's hair
The large number of comments prompted Gwent Police to warn users that posting abusive material could be against the law. Taylor, from Newport, breached his licence conditions after being released from prison in December previous year .

13 August 2019
Myanmar: Monsoons trigger landslides, killing 51 people
As the rainy season reaches its peak, the country's armed forces are pitching in and have readied helicopters to deliver supplies. Precautionary measures will also be done as there is a sign of more landslides at the area, the official added.

13 August 2019
"The Fiend" Bray Wyatt def. Finn Bálor
The music along with the lighting effects made the Fiend feel like a horror movie monster and most importantly, a big star in WWE. Moments before Wyatt was set to debut, Code Orange tweeted revealing themselves as being the performers of the song.

13 August 2019
First Look At Eddie Murphy As Rudy Ray Moore In Netflix Biopic
The film is being directed by Hustle & Flow's Craig Brewer , who spoke about why Moore's story appealed to him. The film will be released in theaters during the Toronto International Film Festival (TIFF).

12 August 2019
Chelsea ace Cesar Azpilicueta sends message to stars after Man Utd defeat
Manchester United were in need of a fast start to the campaign to erase memories of a awful end to last season and got it. He also said that the selection of inexperienced trio Mason Mount, Andreas Christiansen and Tammy Abraham was a bad idea.

12 August 2019
Trump rule to change enforcement of Endangered Species Act
California and MA say they'll go to court to fight the Trump administration's overhaul of the Endangered Species Act. Department of the Interior and a former fossil fuel industry lobbyist".

12 August 2019
Mets work more magic, rally past Nats for 8th win in row
It's the fifth time in his last six appearances that Díaz has allowed a run, and it pushed his ERA on the season to 5.60. Mets: There is still no timeframe for a rehab assignment for ailing OF Brandon Nimmo (neck) and IF Jed Lowrie (knee).

12 August 2019
The Hunt Release Canceled by Universal Pictures
I wrote here about the freaky movie The Hunt , in which liberal elites hunt and murder red state "deplorables". One of the hunted people, however, starts killing the hunters one by one, according to Rotten Tomatoes.

12 August 2019
Tesla Electric Car Catches Fire After Hitting Tow Truck In Moscow
This is not the first report of a Tesla on Autopilot crashing into stopped vehicles. Fortunately, all three managed to escape the vehicle before the two explosions.