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Government Looking Into Insider Trading By Tipping Block Trades
As Congress struggles to determine whether it will finally pass a law defining insider trading, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) have trained their sights on an ever-widening array of insider trading practices and theories. Recent cases have focused on the purchase and sale of material non-public information on the dark web and the use of a variation of traditional insider trading called "shadow trading." The government is now investigating whether financial institutions have engaged in insider trading by tipping some of their clients about large, market-moving "block trades" in securities that the financial institutions are scheduled to handle for other clients. This article discusses how the government might frame insider trading cases based on allegations of tipping before the execution of block trades in securities.
Block Trading Explained
A block trade in securities is a transaction involving either more than 10,000 shares or shares worth at least $200,000. See, 17 CFR §242.600(b)(12); NYSE Information Memorandum Number 14-06 (Feb. 25, 2014). Because block trades are large, these trades may be "market moving." To minimize the market impact, a shareholder trading a large block of stock will often conceal its role in the block trade by running it through a financial institution. Block trading is big business for the financial institutions who handle these transactions. According to data from Dealogic, in 2021, broker-dealers executed more than $70 billion of block trades in the United States. See, Gillian Tan, Katherine Burton, Sridhar Natarajan, "What Block Trades Are and Why the SEC's Investigating," Bloomberg (Feb. 16, 2022).
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The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
When Is a Repair Structural or Nonstructural Under a Commercial Lease?
A common question that commercial landlords and tenants face is which of them is responsible for a repair to the subject premises. These disputes often center on whether the repair is "structural" or "nonstructural."