WASHINGTON, DC - US regulators have accused two men in the first-ever insider-trading case involving credit default swaps (CDS). The US Securities and Exchange Commission (SEC) alleges that Deutsche Bank bond salesman Jon-Paul Rorech passed on confidential information to fund manager Renato Negrin.
The SEC says Negrin, formerly a portfolio manager at the Millennium Partners fund, made an instant $1.2 million profit from the inside information, relating to a high-yield debt offering by Dutch publishing firm VNU, which Deutsche worked with in July 2006. Rorech's lawyers maintain the accusations have "no merit" and that their client - currently on leave from Deutsche - was "simply doing his job" and would fight the charges. Negrin also denies the charges and says that all the conversations that took place were legal and appropriate. Deutsche and Millennium are both co-operating with the regulators - Millennium added that it has a "zero-tolerance" policy on insider trading.
More on Regulation
Data from several clearers submitted to illustrate impact on bank leverage ratios
CPMI and Iosco unveil proposals for unique transaction identifiers
Lapse rate for unique identifiers is rising
Four Asian CCPs have applied, but Australian outfit is first to win an exemption
Sign up for Risk.net email alerts
Catch up with the debate at OpRisk's flagship London conference
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.