Stockholm-listed betting and gaming operator Cherry has terminated the employment of the company's president and chief executive Anders Holmgren.

Holmgren, who is being held in police custody under suspicion of insider trading, leaves his roles, as well as all directorships of Cherry's subsidiary companies, effective immediately.

"Anders Holmgren has made valuable contributions as CEO of Cherry, but he is unable to perform his duties while facing accusations of severe insider trading," Cherry chairman Morten Klein explained.

"The board of directors has today decided to terminate his employment as CEO," Klein said. "In connection therewith, Anders Holmgren will also leave his assignments as board member in Cherry's subsidiaries."

The company has launched a process to select his successor. In the interim, audit committee chair and former CEO Gunnar Lind will has taken charge of the business.

Lind has been serving as interim CEO since Holmgren was arrested at Cherry's Stockholm offices last week, as part of an investigation by the Swedish Economic Crime Authority into "severe" insider trading offences.

He has been remanded in custody, rather than being released on bail.

Shares in Cherry AB (STO:CHER-B) were trading down 0.70 per cent at SEK65.40 per share in Stockholm Tuesday morning.

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