Is well known that members of the United States to do financial transactions, how to choose financial products as an investment, you must read a large number of studies and analysis of data, however, no one of these data can be disclosed. The transaction should be rewarded, sooner than their peers to be the right financial products for “strike”, and that requires the “competitors do not know the news.”
Disclose inside information has a variety of ways, the U.S. government focus on investigating the financial company to provide customers with the so-called “expert networks”, that is, with some fund managers meetings and phone calls. This is a commonly used financial communication between the companies, but whether there will be revealed in this internal information, it is difficult to define.
In addition, U.S. companies in the recruitment of financial traders, they all prefer the more people will be social. And any financial events because of the person concerned, such as a company to do the financial, legal consultation, quarterly and annual reports and other aspects of people may have “inside information.” These messages are strictly prohibited by U.S. law to communicate. But “after work drink, a meal,” when the “intention to reveal” so difficult to obtain evidence against the regulatory authorities.
From the current perspective, this action does the government departments in place than ever before, we estimated that the worst is that some people will be prosecuted, and put them in prison. But this final analysis, the regulatory authorities as a political show. Because insider trading has become the industry “open secret” of the case, arrested several people on what is the use?
Ridge’s business director Daniel Christman conservative for this incident. He believes that any information that is not enough now to determine the importance of this event. The present situation, the survey focused on hedge funds, will spread to investment banks, and even individual investors, is still unknown. He also said how the insider information and non-insider information to draw a clear dividing line between will be the key to such investigations. As for the reaction of the market, he said, “It is not to say, we need to digest the information.” Inextricably Wall Street “network”
Diamond Capital Management and the level of the head of an international investment company was under the command of a large fund companies, Steven Cohen, SAC Capital before the fund manager. SAC Capital declined to comment currently.
Level of international investment company based in Greenwich, Conn., currently David – Jia Naike responsible for the operation. Jia Naike was SAC Capital trader, manages about 40 billion in client assets.
Level of international investment company is a partner of Broadband Research LLC Anthony Qiasen company, John – Jin Nukan former clients. According to informed sources, the brothers Max and Steven Fortuna Museveni is an acquaintance, which has been sailing the case of intra-group transactions pleaded guilty, is currently assisting the government investigation.
“Criminal” difficulties of proof
Hedge funds bought information from a number of companies is a common early intervention. However, the difficulties of this investigation is that the current “insider trading” legislation in the United States has not clearly defined.
With the U.S. courts after the 1929 stock market crash of the implementation of the antifraud provisions of securities to a different interpretation of the financial sector and legal acts of a criminal offense “line” in the case of the last few decades evolving.
Insider trading will only meet four conditions to be convicted: (1) he holds the information known to the public; (2) the information is of great sex, that investors reasonably believes that disclosure of the information once the stock price will have a significant impact; (3) the use of this information to trade; (4) information prior holder or trader duty of disclosure.
Violation of insider trading in the United States companies or individuals may be subject to civil, administrative and criminal penalties, civil litigation generally investors, while the administrative and criminal generally by the SEC and the U.S. Department of Justice filed. Including high fines and criminal penalties including imprisonment. Any person engaged in the illegal “insider trading” on the natural person is liable to 10 years in prison, or impose a fine of less than $ 1,000,000; for non-natural person, be liable to a fine of less than 2.5 million yuan.