On the 6th of March, Russian bank Energobank turned to the local court in the city of Kazan after experiencing some losses while trading on the foreign exchange markets on the Moscow Exchange.

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The bank charged a number of brokers with taking advantage of Energobank’s trading activity on the Moscow Exchange on the 27th of February, alleging a number of trades  were irregular.

Today, the operator issued a statement which said, “On the 27th of February all deals on the currency market have been executed in full compliance with the law. The trades which Energobank executed in the USD/RUB currency pair with an intraday settlement, are legal and real.”

“The Moscow Exchange also confirms that its infrastructure has not been subjected to unauthorized access. All of the settlements have been executed during the session have been in full size,” the exchange’s statement continued.

The court has set a hearing date for the 3rd of April.

Apparently, Energobank’s trades led to extraordinary volatility in the USD/RUB currency pair for a couple of minutes due to thin liquidity. The moves opened some opportunities for a number of market participants.

The bank subsequently decided to block some of the trader accounts, claiming that it was damaged financially by inappropriate trades on the Moscow Exchange, prompting the institution to issue an official statement.

“The exchange is within its right to reveal trade counterparties only when requested to do so by the regulator, which is the Bank of Russia or by legal authorities. In this case, requests regarding brokers and banks who acted as counterparts to Energobank has been received by the Moscow Exchange and information has been presented in accordance with the law,” the statement continued.

“After analyzing the situation and in accordance with the regulator, the Moscow Exchange intends to initiate a process which introduces changes into current legislation, protecting the rights of investors and traders,” the exchange’s position concluded.