In 2015, EXANTE, a prominent global broker, faced an unexpected challenge when the U.S.
Securities and Exchange Commission (SEC) erroneously implicated it in an insider trading
scandal. The SEC’s misclassification of EXANTE as a hedge fund involved in illicit trading
activities led to a series of complications, including frozen client assets and negative
publicity. However, EXANTE’s prompt and efficient response to the SEC’s allegations
facilitated a swift resolution, resulting in the SEC clearing EXANTE of all insider trading
EXANTE and the SEC Investigation: Unraveling the Facts
The SEC investigation targeted a network of funds across Europe and the U.S. that allegedly
capitalized on insider information secured by Ukrainian hackers. These hackers infiltrated
financial news websites, gaining access to sensitive data before its public release. Despite
EXANTE’s limited involvement, the SEC filings mistakenly held EXANTE accountable for its
clients’ trades, mislabeling it as a hedge fund.
EXANTE’s Response to SEC Allegations
As an execution-only broker, EXANTE does not partake in proprietary trading or offer
investment advice. This operational model renders it incapable of benefiting from insider
trades. EXANTE swiftly engaged with the SEC, elucidating its business model and providing
all necessary information. The SEC acknowledged the misclassification and subsequently
dropped all insider trading charges against EXANTE.
EXANTE Post-SEC Clearance: Recovery and Growth
Post-clearance, EXANTE focused on resuming its services and addressing the misconceptions
caused by the initial negative coverage. Despite these challenges, EXANTE has demonstrated
resilience and continued growth, expanding its product offerings and emphasizing its
commitment to stringent regulatory compliance and superior customer service.
Regulated by top-tier authorities such as the SFC in Hong Kong, the FCA in London, CySEC,
and the Maltese regulator, EXANTE ensures robust client protections and strict adherence
to financial regulations.
In conclusion, EXANTE’s experience with the SEC insider trading allegations underscores the
importance of accurate regulatory classifications and the broker’s dedication to regulatory
compliance and customer service. Following its clearance from all SEC charges, EXANTE has
continued to strengthen its market position and foster trust with its global client base.