The London-based hedge fund, Moore Capital, was one of the firms raided by the City watchdog the FSA, the BBC has learned. One person at Moore Capital and five other City workers are being held. Those arrested are suspected of taking part in a long-running insider-dealing scheme. The arrests came after 16 addresses were searched in a joint probe by the Financial Services Authority (FSA) and Serious Organised Crime Agency (Soca). Documents and computers were seized from premises in London, the South East and Oxfordshire. It is the FSA's biggest operation against insider dealing.
Update: A suspect and statement from Moore, via the WSJ:
Among the suspects arrested Tuesday morning was Julian Rifat, a London-based execution trader for Moore Capital, according to people familiar with the matter. Mr. Rifat couldn't immediately be reached for comment.
In a statement Tuesday, Moore Capital, a prominent New York-based hedge fund with about $14 billion in assets under management, said U.K. authorities had executed a search warrant for documents related to an employee on its London equity-execution desk. Moore said the investigation doesn't involve any of the hedge fund's capital and that the firm "is cooperating fully with the FSA in its investigation."