CDS Case Could Spread SEC's Insider Trading Reach

Law360, New York (May 12, 2009, 12:00 AM EDT) -- In May, the U.S. Securities and Exchange Commission brought its first ever insider trading case linked to a credit default swap transaction, slapping a bond trader at Deutsche Bank Securities Inc. for passing privileged information regarding a bond offering by Dutch media conglomerate VNU NV to a former portfolio manager for hedge fund investment adviser Millennium Partners LP.

The case indicates that the SEC and other regulators will be on the lookout for insider trading and that their eyes will fall on nontraditional areas, both in...
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