SEC investigates first CDS insider trading case
Losses and Lawsuits
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.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
SEC expected to protect CRT in conflicts of interest rule
Decision could come as early as today; high hopes for credit risk transfer exemption
FRTB managers face hard facts about risk factors
There are ways to reduce the capital charges caused by NMRFs, but they come at a price
SEC official defends delayed dealer registration rule
Regulator says market should be treated like equities, but PTFs warn it will harm market liquidity
New UK clearing rules: same as the old rules?
Clearing experts doubt UK regulation can diverge significantly from Emir and global standards
SEC to delay US Treasury clearing mandate, dealer rule
A final vote on proposed US Treasury market reforms is now expected in early 2024
BoE warns against use of stablecoins in banking
Tokenised payment systems pose compliance and systemic risks, regulator says
Industry unsure of SEC’s new short-selling transparency rule
Requirement aims to provide sufficient transparency while protecting traders from a GameStop-style backlash
EC to adopt NII outlier test within ‘weeks’
New IRRBB rules could come into force in early 2024; industry hoping EBA draft is softened
