FSB to investigate unusual trading in foreign exchange futures


The FSB can confirm that it is investigating unusual trading in foreign exchange futures contracts after receiving a report from the JSE

The Financial Services Board’s (FSB) Department for Market Abuse, which is responsible for carrying out the mandate of the Directorate of Market Abuse (DMA), is currently conducting an investigation into possible insider trading in certain foreign exchange futures contracts before the recall of former Finance Minister Pravin Gordhan from office.

This process emanated from the report received from the Johannesburg Stock Exchange on 11 April 2017 into the matter.

Upon completion of its investigation, the Market Abuse Department will compile a report with its findings for the DMA, which may refer the matter to the Enforcement Committee (EC) of the FSB for enforcement action to be instituted against the offender/s if it believes that the Financial Markets Act (FMA) has been contravened. Alternatively, the DMA may close the matter if it believes that there is no or insufficient evidence of insider trading.

If the matter is referred to the EC, the determination of the EC will be published once the matter has been finalised.

Disclosure of details of the investigation is subject to section 22 of the Financial Services Board Act which prohibits any member(s) or employees of the FSB from disclosing to any other person any information obtained in the performance of functions under this Act.

The duration of the investigation will be determined by the complexity of the investigation.