In-House Accounts May Stop Insider Trading, 9th Circ. Hears

Law360, New York (January 27, 2012, 9:11 PM EST) -- A financial industry group urged the Ninth Circuit on Thursday to uphold a ruling for Morgan Stanley Smith Barney LLC letting brokerage firms require employees to keep personal trading accounts in-house, saying the policy is needed to help detect violations like insider trading.

The Securities Industry and Financial Markets Association filed an amicus brief on behalf of Morgan Stanley in an appeal seeking to rejuvenate two proposed employee class actions alleging the securities firm violated California labor law by imposing such a restriction.

In asking the...
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