Hong Kong’s Securities and Futures Commission (SFC) has launched insider trading criminal proceedings against hedge fund Segantii Capital Management, Founder and Chief Investment Officer Simon Sadler and ex-trader Daniel La Rocca.
According to a statement by the SFC, the prosecution relates to dealing in the shares of a company listed on the Stock Exchange of Hong Kong Limited prior to a block trade in June 2017.
Hong Kong-headquartered Segantii, which was established in 2007 and is one of the oldest and largest hedge funds operating in Asia with around $4.8bn in assets, also has operations in London, New York and Dubai.
After appearing in Hong Kong’s Eastern Magistrates Court on Thursday morning, no plea was taken from the defendants and the case was adjourned until 12 June 2024.
Both Sadler and La Rocca were released pending the next hearing, having posted cash bail of HKD1,000,000 and HKD500,000 respectively. They also agreed to inform the SFC 24 hours before leaving Hong Kong, providing a full itinerary and contact details.
The pair also agreed to remain at the home addresses as provided to the SFC and to inform the commission 48 hours in advance of any change of address and/or contact details whilst abroad, and to refrain from contacting, either directly or indirectly, any prosecution witnesses.
