Credit Suisse Broker Suspended By Hong Kong Regulator

Law360 (December 13, 2006, 12:00 AM EST) -- The Hong Kong Securities and Futures Commission has suspended a Credit Suisse Group broker for allegedly trading on inside information, marking the first time the regulator has taken an action of this kind.

Stephane Hug allegedly engaged in a practice known as “sounding out,” in which a bank underwriting a transaction makes public certain information about the deal in order to determine the interest of a prospective buyer.

In 2003, Daiwa Securities SMBC allegedly contacted Hug with information about an upcoming convertible bond issue by Sumitomo...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.