ASIC sues Westpac for insider trading over Ausgrid trades
“ASIC alleges that Westpac’s trading occurred while it was in possession of information that was not generally available to other market participants including those that traded with Westpac that morning. ”
The transaction was accompanied by the $12 billion loan and a commensurate interest rate swap transaction, which ASIC said; “remains the largest ... in one tranche in Australian financial markets history”.
The consortium executed the swap transaction at 10.27am and ASIC has alleged; “that Westpac’s trading on the morning of 20 October, 2016, had the potential to impact the price of the swap transaction to the detriment of the consortium or the special purpose vehicle.”
ASIC has also alleged that Westpac failed to provide “full and informed disclosure about its intention to pre-position its trading books prior to and with notice of the execution of the swap transaction, amounted to unconscionable conduct”.
Westpac said it acknowledged the proceedings and said it was not appropriate to provide further comment given the matter was before the court.
“Westpac takes these allegations very seriously and is considering its position having just received …
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