21 April 2017
Dortmund
Reporter: Drew Nicol
Borussia Dortmund bomber was shorting club shares, claims German prosecutor
A Borussia Dortmund bombing suspect has been accused of attempting to profit from the attack through shorting shares in the German football club.

Three bombs went off near the Borussia Dortmund bus on 11 April as the team travelled to its next Champion’s League fixture in what was initially believed to be an Islamic terrorist attack.

German authorities arrested a man, identified as Sergej W, a 28-year-old German and Russian national, on his way to work on Friday (21 April) and charged him with attempted murder and other crimes.

The German prosecutor confirmed in a statement that the accused acquired 15,000 put options in Borussia Dortmund shares on the day of the attack (11 April), with a term to 17 June.

The options were purchased via the IP address of the Hotel L'Arrivée, where Sergej, along with the Borussia Dortmund team, were staying.

The German attorney general explained: “In the event of a massive decline in Borussia Dortmund shares, the profit would have been multiplied by the provisional calculations. A significant drop in the price would have been expected if, as a result of the attack, players had been seriously injured or even killed.”

Two people required medical treatment after the attack, with Borussia Dortmund centre-back Marc Bartra needing wrist surgery. A police officer was also treated for shock.

Potential fatalities were only avoided because one of the devices, which were filled with metal pins, was placed about a meter off the ground and therefore too high to be fully effective, according to the German prosecutor’s statement.

Dortmund’s share price did fall from €5.73 on 10 April to €5.61 after the attack on 11 April. The share price quickly rebounded to €5.71 the follow day but is trading at €5.58, as of 11:00am today.

The suspect attempted to pass the attack off as an Islamic terrorist attack by leaving three letters claiming a radical Islamist motive for the attack and making threats of further attacks in certain demands weren’t met.

The documents were examined by experts and “considerable doubts about a radical Islamist origin” were quickly raised due to inconsistencies between this bombing and previous attacks.

Picture source: Borussia Dortmund

More news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Pension funds pick Northern Trust for sec lending
28 April 2017 | Belfast | Reporter: Stephanie Palmer
Northern Trust has secured its thirteenth Irish state pension fund as a securities lending services client
BoE money markets code gets ISLA approval
28 April 2017 | London | Reporter: Drew Nicol
The code offers market best practice principles and acts as a revision and update of the securities borrowing and lending code and the gilt repo code
Lenders should stick to the scrip
27 April 2017 | London | Reporter: Drew Nicol
Beneficial owners are "leaving money on the table" by failing to engage in scrip options, heard attendees of the Finadium Investors in Securities Lending conference in London
Securities lending revenue drops as hot stocks fall short
27 April 2017 | London | Reporter: Drew Nicol
In a presentation at the Finadium Investors in Securities Lending Conference in London, DataLend revealed that revenue for Q1 2017 hit $2.5 billion, down $247 million from Q4 2016
State Street sees slow Q1 for securities finance
27 April 2017 | Boston | Reporter: Stephanie Palmer
State Street saw very slight declines in securities finance revenues in Q1 2017, securing $133 million, 0.7 percent less than the $134 million taken in the same period last year
Delta Capita acquires Appendium
27 April 2017 | London | Reporter: Mark Dugdale
Business and technology consultancy Delta Capita has acquired Appendium as it gears up to launch a securities finance utility later this year
Squawker launches equity finance platform
27 April 2017 | London | Reporter: Mark Dugdale
The new platform provides a central hub for European equity finance participants to bring the execution of their equity hedge trades on-exchange. Squawker said six investment banks are participating