Brazilian securities and exchange commission CVM has begun proceedings in the case involving Wesley and Joesley Batista for the alleged misuse of insider information in interest rate derivatives trading at Banco Original SA, Valor Econômico reported May 28.

In a statement sent to the newspaper, J&F Participações SA, Banco Original's holding company, said the derivative transactions the CVM is reviewing are common and regular, and are within rules set by regulatory bodies. However, both the holding company and the JBS Group are under scrutiny and could be sanctioned by the regulator.

The CVM launched an inquiry into the bank in April 2018, over insider trading in the derivatives market. In that case, irregularities were supposedly detected in the bank's operations dealing in DI1 futures contracts in May 2017.

Prior to that, the CVM had dismissed another insider trading case against Banco Original, as the regulator then ruled that the bank was unaware its operations were based on confidential information.