On August 11, 2015, the U.S. Securities and Exchange Commission (SEC) issued press release no. 2015-163, which says the SEC filed a complaint alleging that EXANTE Ltd. was involved in an international insider trading scheme. That release led to inaccurate headlines arising in the media. EXANTE would like to address the press release and make some preliminary clarifications.
The SEC complaint unfortunately misunderstands EXANTE, our business model, and the regulatory conditions we operate in. EXANTE works under license no. IS/52182 issued by the Malta Financial Services Authority (MFSA). EXANTE is a broker and provides direct market access (DMA) to most markets in the world. Contrary to the claims made in the complaint and subsequently in the media, EXANTE is not, and has never been, a hedge fund, and EXANTE has never traded U.S. stocks for its own account. Instead, EXANTE simply executes trades ordered by and for its customers, not by or for EXANTE itself.
EXANTE is unaware of any contact or affiliation by EXANTE or its directors, owners, or employees with any of the “Hacker Defendants” or “Dubovoy Group Defendants” named in the SEC complaint or with any of the defendants named in the related criminal proceeding. Nor does EXANTE believe that it received any illegally obtained or other inside information regarding public companies. EXANTE is not a defendant in the criminal proceeding, and none of its directors, owners, or employees has been charged in either proceeding.
EXANTE continues its operation in full, and our employees will continue to do their best to ensure that our clients receive outstanding service paired with security of their assets.
EXANTE has been working hard to create a strong recognizable brand with a solid standing, and any illicit trading will not be tolerated. We are closely cooperating with all authorities (SEC, MFSA) to attempt to rectify the misunderstandings, and are ready to provide assistance and hopefully resolve the matter in the near future.
EXANTE has engaged Howard Schiffman, a former SEC prosecutor, and Eric A. Bensky of Schulte Roth & Zabel LLP, a U.S.-headquartered law firm that routinely represents major financial services organizations, to represent it in the SEC proceeding.