FSB to probe traders on Gordhan recall
There was a sharp spike in dollar-rand-futures contracts trades ahead of Pravin Gordhan’s recall
The Financial Services Board (FSB) will question people suspected of insider trading in foreign-exchange futures contracts ahead of former finance minister Pravin Gordhan’s firing. "We are not in a position to disclose the names of the persons who are under investigation at this stage," said FSB market abuse department director Solly Keetse. The FSB would give suspected insiders an opportunity to answer to allegations under oath, he said. Insider trading occurs when someone trades on inside information, which, if made public, would materially affect the price of a security. The Financial Markets Act prohibits it. On March 27, President Jacob Zuma abruptly recalled Gordhan from meetings with investors and ratings agencies in London, sending the rand 3% lower. Business Day reported earlier that Stuart Theobald, chairman of Intellidex, had observed a sharp spike in the volume of dollar-rand-futures contracts traded that morning. This suggests that someone might have known of the recall...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.