Insider Trading
Panel at recent regulatory conference discuss financial crimes, recourse that’s available when crimes cross borders, and how CFA Institute deals with members involved in crimes.
Although insider trading prosecution has a long history in the US, recent actions by the courts and Congress have thrown the SEC enforcement arm into a no man’s land.
Financial sector crackdown implicated big industry names and had significant impact on Chinese capital market.
Despite courts’ waffling on insider trading, the CFA Institute Code and Standards are constant: If you know the information is material and not in the public domain, don’t trade or cause others to trade by disclosing it.
When does strategizing with other investors on your activist plans morph into tipping fellow investors about trading positions that could move stock price once disclosed?
The SAC Capital Advisors case emphasizes the importance of exercising supervisory responsibility. Supervising others to prevent violations of securities laws, rules, and regulations is also a prominent part of the CFA Institute Code of Ethics and Standards of Professional Conduct.
Insider trading charges against the former research analyst and alleged SAC tipper raises the question of when the sharing of "confidential" information constitutes insider trading.
In an interesting turn of events, the Securities and Exchange Board of India (SEBI) has announced that it needs to review its regulations that deal with front-running.
The taint of insider trading threatens to derail investor trust in hedge funds and other alternative strategies. Is it time for a new level of self-examination by hedge fund bosses around compensation systems, ethical codes, and the culture of the firm itself?
Type “insider trading” into your favorite internet search engine and a virtually endless list of articles will appear. Stories cover countries and markets of all sizes. The trading on material nonpublic information is a longer-term phenomenon, to which regulators are steadily increasing their enforcement activities.