Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Britain's Burford takes legal action to get share data from LSE

Stock Markets Sep 30, 2019 12:27PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain
 
LSEG
+0.02%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BURF
-1.15%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Simon Jessop

LONDON (Reuters) - Burford Capital (L:BURF) began legal action on Monday against the London Stock Exchange (L:LSE) seeking trading data it said it needs to investigate alleged manipulation of its share price.

Burford, a company which specializes in financing litigation, raised concerns about trading activity on Aug. 12 after a sharp fall in its shares, alleging 'spoofing' and 'layering', where traders make and cancel orders to influence share prices, and said it was investigating.

London-listed Burford last month commissioned a report from Columbia University academic and data analyst Joshua Mitts to assess publicly available market data on its shares.

Burford's lawyer Richard East of Quinn Emanuel Urquhart & Sullivan, said in court documents that the report by Mitts showed there were "strong grounds to consider that a large proportion of the decline in Burford's share price was the consequence of unlawful trading activity known as 'spoofing' and 'layering'".

"This share price decline coincided with a short selling attack on Burford's shares carried out by Muddy Waters Capital LLC," East said in the documents seen by Reuters.

Carson Block, founder of Muddy Waters, denied any involvement in a statement on Monday.

"Spoofing and layering are issues that have arisen in the high frequency and computer-driven trading world, and Muddy Waters has zero capability to engage in these practices," he said.

Burford said it wants the court to help it discover which individuals and entities placed the orders, and on behalf of whom, to help determine what was legitimate trading and what may have constituted market abuse.

That level of data is commercially sensitive and not currently in the public domain, hence the need for Burford to apply for court approval to access the data.

A spokesperson for the LSE said: "The Financial Conduct Authority is the competent public authority responsible for investigating allegations of market abuse, where there are reasonable grounds for doing so and taking action, including potential criminal proceedings, where the evidence supports it.

"London Stock Exchange provides any information the FCA requires from it for the purposes of their investigations."

Britain's Financial Conduct Authority (FCA) said on Aug. 12 it was making "wide-ranging enquiries" into the circumstances surrounding the Muddy Waters report.

The FCA declined to comment on the case on Monday.

After falling 42% from Aug. 6 to the close on Friday, Burford stock jumped to a session high of 843.5 pence after its statement on Monday. Its shares closed up 3.7% on Monday.

Britain's Burford takes legal action to get share data from LSE
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email