COVID-19-Related Transparency and Insider Trading Discussion – A Global Perspective
With employees working from home and handling material, nonpublic information, insider trading issues may arise. Speakers from the Firm’s U.S., UK, Australian, and European offices led an engaging conversation on handling inside information and the potential for market abuse in the current COVID-19 context.
This 30-minute conversation revolved around the following hypothetical scenario:
- Trader A is an energy trader whose firm is having financial difficulties and may go bankrupt.
- Trader A discloses to Trader B, an energy trader at a financial institution, that Trader A's firm is suffering cash flow issues and may go bankrupt.
Our speakers then addressed the following questions arising from this scenario:
- Can Trader B use this information in oil and equity trading?
- Can Trader B pass on the information to others at Trader B's institution who trade with Trader A's firm or trade in that firm's stocks?
- Does it matter why or when Trader A disclosed the information to Trader B?
- What if Trader A just wanted to increase favorability with the financial institution when he has to look for another job?
Watch the webinar to see how this scenario played out and how our lawyers addressed these questions.
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