Due to exchange rate fluctuations at the financial service provider Wirecard has reported to the financial Supervisory authority BaFin display. There is a suspicion of market manipulation “in the Form of a Short-attack in the form of shares of Wirecard AG was,” said the authority. The Reuters news Agency cited several “with the process, people familiar”, according to which there are detailed grounds for suspicion against journalists and investors.
According to the Munich public Prosecutor’s office suspected of several people, to have distributed tasks to the share price being manipulated. She gave the number of the BaFin is notified of the defendants in the single-digit range. Not expressed in the name of both authorities.
Previously reported, the level of Ads against “about a dozen” people. According to the report, BaFin journalists of the British economy newspaper Financial Times suspected “to have more than one Fund or individual investors made common cause”. A BaFin spokeswoman did not want to comment on that.
Wirecard’s share price closed according to the Reports, around 3.6 per cent in the Plus. In the past few months, the share price of the Dax broke-novice repeatedly. The Financial Times had repeatedly reported fake revenues and fake contracts with Wirecard in Singapore. The company rejected the. Wirecard found in its Asia headquarters in Singapore, only minor financial irregularities.
The online payment service provider from Aschheim bei München, Germany complained of this treatment, due to market manipulation. Prosecutors and BaFin to investigate the case since the end of January. In February, a Financial Times Journalist, came into sight. The newspaper rejected the suspicion of market manipulation, however.
an Unusual step: banning short-selling
Due to the fluctuations of the Wirecard share the BaFin resorted to an unusual means: The securities regulators under so-called said short sales of Wirecard AG stock – and banned for the first time betting on a falling price of a particular stock, “because they threaten the market confidence in Germany, seriously”. It is still unclear whether the BaFin extended the ban on the extradition otherwise on Thursday.
For short sales to borrow investors shares and sell them in the expectation that the price will fall and you can acquire the title of a cheaper back, to return thereafter to the holder. This is common and legal, but it can also be done with the criminal mind.
For the accusation of market manipulation, it is not according to the mirror, whether or not the accusations of the Financial Times, have proved to be true or not. Rather, it is a question of whether the authors of the Wirecard knew article, that certain persons had previously sold shares in order to benefit from the effect of the article financially – and whether the authors have this conflict of interest. The Financial Times rejects.