Action against insider trading: Hong Kong's securities regulator has initiated insider dealing proceedings against Segantii Capital Management, a leading hedge fund in Asia, along with its founder, Simon Sadler, and former trader, Daniel La Rocca. The charges stem from alleged insider trading in the shares of a Hong Kong-listed company prior to a block trade in June 2017.

According to the Hong Kong Securities and Futures Commission (SFC), Segantii and its executives are facing criminal prosecution for their involvement in the matter. Both Sadler and La Rocca, however, could not be reached for comment at the time of reporting.

Sadler, who hails from Britain and is known as a prominent businessman, also holds ownership of Blackpool Football Club, his hometown soccer team.

Founded in 2007, Segantii Capital Management stands as one of the most established and sizable hedge funds in Asia. Despite a slight decline in 2023, its flagship Asia-Pacific Equity Multi-Strategy Fund experienced a 2.5% increase in the first quarter of this year, as disclosed in a monthly letter obtained by Reuters. The fund's assets under management totaled approximately $4.8 billion by the end of March.

Apart from its base in Hong Kong, Segantii operates in key financial hubs including London, New York, and Dubai.

The accused individuals, Sadler and La Rocca, made a court appearance at Hong Kong's Eastern Magistrates' Court, where no plea was entered. The case has been adjourned until June 12, as confirmed by the SFC. Pending the next hearing, both defendants were released under specific conditions, including cash bail amounts of HK$1 million ($128,030) for Sadler and HK$500,000 for La Rocca.

(With Reuters inputs)