SEC investigates first insider trading CDS case
Daily news headlines
WASHINGTON, DC - US regulators have accused two men in the first ever insider trading case involving the credit default swaps (CDS) market.
The Securities and Exchange Commission (SEC) alleges Deutsche Bank bond salesman Jon-Paul Rorech schemed to pass on confidential information to former hedge fund portfolio manager Renato Negrin, constituting market abuse.
The regulator says Negrin, formerly a portfolio manager at the Millennium Partners fund, gained an instant profit of $1.2 million from the inside information, relating to a high-yield debt offering by Dutch publishing firm VNU that Deutsche was working on in July 2006.
Rorech's lawyers say 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 maintains all conversations that took place were legal and appropriate.
Deutsche and Millennium say they are co-operating closely with the SEC - the fund adding that it has a "zero tolerance" policy towards 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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] 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 [email protected]
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 [email protected]
More on Regulation
Risk management
Union beckons for the three quant tribes
Studies may be deferred, but future for grads is bright, argues UBS’s Gordon Lee
Receive this by email