Insider Trading

Frontrunning: December 3

  • Mario Draghi Is About to Become the World's Market Risk Manager (BBG)
  • Five Things to Ask Mario Draghi From Negative Rates to QE (BBG)
  • Leaving behind baby and bombs, couple sows panic in California (Reuters)
  • Couple's motive in California rampage a mystery for police, family (Reuters)
  • In Grim Ritual, Barack Obama Again Calls for Stricter Gun Control After Mass Shooting (WSJ)
  • Islamic State Defeat Impossible Without Ground Force, Kerry Says (BBG)
  • OPEC States Push for Output Cuts in Face of Saudi Opposition (BBG)

China Unleashes Perfect Storm Of Bad News Prompting Stock Market Plunge

From witch hunts to corporate defaults to abysmal data, Friday marked a rather unceremonious end to the week for China, as a veritable perfect storm of bad news sent the SHCOMP reeling. Unfortunately for China's day trading masses the plunge protection team was, like Guotai Junan International Holdings’ CEO Yim Fung, "missing" in action.

After Arresting Hundreds Of Stock Traders, China Cracks Down On "Malicious" Metals Sellers Next

The China Nonferrous Metals Industry Association has submitted a request to Chinese regulators to probe "malicious" short-selling in domestic metal contracts amid recent price declines. Becase it is always the "malicious" sellers who are the cause of all the world's problems, never the "malicious" buyers, especially when said buyers are the central banks themselves.

Ex-Goldman Compliance Worker Sued By SEC For Insider Trading

A former Goldman Sachs Group Inc. employee "hired to help it monitor computer systems for illicit activity" used the company’s own inside information to invest in mergers and acquisitions involving the bank’s clients, the Securities and Exchange Commission said.

Frontrunning: November 25

  • European stocks up, oil slides as concerns ease over Russia-Turkey tension (Reuters)
  • ECB discusses two-tiered bank charges, broader bond buys (Reuters)
  • New agonies, alliances as Fed debates post-liftoff plan (Reuters)
  • A New Military Power Rises in the Mideast, Courtesy of One Man (BBG)
  • Russia's Gazprom says halts gas supplies to Ukraine over payment (Reuters)
  • Other central banks set to act, but Swiss policy cupboard bare (Reuters)

Global Stocks Rebound As Geopolitical Tensions Subside; Europe Surges On Report Of More ECB Easing

Following yesterday's dramatic geopolitical shock, U.S. equity index futures rise as Russia has not escalated the confrontation with Turkey as some had feared, while Asian shares fall, reversing earlier gains. European stocks are rallying and the euro is falling on the back of a Reuters report that the ECB is mulling new measures to prop up lending, although it’s not clear at this point what the real impact from these measures would be.

"People Are Worried" - Chinese Authorities Arrest 'King Of IPOs' & 'Hedge Fund Brother No. 1'

The arrests or investigations targeting the finance industry in the aftermath of China’s summer market crash have intensified in recent weeks according to Bloomberg, creating a climate of fear among China’s finance firms and chilling their investment strategies. As one professor of Chinese economy noted, "some in the political leadership sought to find scapegoats to blame" for the market crash which along with massive intervention "created uncertainty and anxiety that can only undermine the effort to make these markets work better."

"We Arrested Some Folks" - How China "Fixed" Its Stock Market

“The authorities have arrested a lot of people, but we still don’t have a clear picture regarding the real reasons behind it. Sometimes we just tell ourselves that we don’t really need to know the truth, as long as the market goes up.”

In Duel With Valeant, Ackman; Is Judge David Carter The "New Jed Rakoff?"

In his rejection of an SEC settlement with Citigroup, Judge Jed Rakoff vowed to "see that the truth emerges." After presiding over the most high-profile insider trading cases since the crisis -- including Raj Rajaratnam and Rajit Gupta -- Judge Rakoff has come to symbolize the mantra that "nobody is above the law." In determining that Valeant and hedge fund manager Bill Ackman must face insider trading charges for their failed takeover of Allergan, U.S. District Judge David Carter may be the "new Rakoff."

Frontrunning: November 12

  • Stock futures little changed as Yellen comments awaited (Reuters)
  • Draghi stimulus hint underpins stocks, knocks euro (Reuters)
  • Black Friday's Losing Its Mojo and Retailers Might Be Relieved (BBG)
  • Macy’s Fights Downward Spiral With Bet on Off-Price Backstage Stores (WSJ)
  • Greece Comes to a Standstill as Unions Turn Against Tsipras (BBG)
  • Euro zone production falls more than expected in September (Reuters)
  • Valeant played a key role in building, operating Philidor RX (Reuters)

Global Stocks Fall For 5th Day On Disturbing Chinese Inflation Data; Renewed Rate Hike Fears; Copper At 6 Year Low

The ongoing failure of China to achieve any stabilization in its economy, after already cutting interest rates six times in the past year, and the prospect of a U.S. interest rate hike in December, had made markets increasingly jittery and worried which is not only why the S&P 500 Index had its biggest drop in a month, but thanks to the soaring dollar emerging market stocks are falling for a fourth day - led by China - bringing their decline in that period to almost 4 percent, and the global stock index down for a 5th consecutive day.

Widening Probe Snags Most Senior Chinese Banker Yet, Sends Stocks Lower; RBA Sparks Commodity Slide, FX Turbulence

It's a busy night in AsiaPac. The ubiquitous Japanese stock buying-panic at the open quickly faded. China weakened the Yuan fix quite notably and injected another CNY10bn of liquidity but news of the arrest of the President of China's 3rd largest bank and a graft investigation into Dongfeng Motor's general manager sparked greater uncertainty and Chinese stocks extended the losses from yesterday. Commodities had started to creep lower, with Dalian Iron Ore pushing 2-month lows with its biggest daily drop in 3 months, were extended when the Aussie central bank kept rates steady (as expected) but sparked turmoil in FX markets with forward guidance of th epotential for more easing.