Thursday 30th July 2015
NEWS TICKER, Thursday, July 30th: Moody's: Yuexiu's ratings unaffected by Guangzhou land acquisitions. Moody's Investors Service says that Yuexiu Property Company Limited's has announced acquisition of two parcels of land in Guangzhou has no immediate impact on its Baa3 issuer and senior unsecured debt rating, the (P)Baa3 senior unsecured debt rating for its MTN program, or their stable outlook. Yuexiu Property announced it had acquired interests in two joint ventures that will develop two parcels of land in the Haizhu District of Guangzhou, Guangdong Province. - Moody's: Asian rated high yield bond issuance slows in 2Q 2015. Moody's Investors Service says that Asian high yield issuance in the region fell to $2.7bn in Q2 2015, well below the $4.5 registered in Q1 2015, and was at the lowest quarterly level since Q3 2013. - The Spanish Mercado Alternativo de Renta Fija (MARF) has admitted to trading a securitisation commercial paper programme by IM Fortia 1, a Securitisation Fund formed by Intermoney Titulización, Securitisation Funds Manager. The maximum outstanding amount of the programme is €400m.

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Regulatory Update

Insider Trading, Worldwide

Tuesday, 12 June 2012 Written by 
Insider Trading, Worldwide Last week, regulators in both the U.S. and abroad brought landmark cases for insider trading violations. http://www.ftseglobalmarkets.com/

Last week, regulators in both the U.S. and abroad brought landmark cases for insider trading violations.

In the U.S., Judge Katharine Hayden sentenced former corporate lawyer Matthew Kluger to twelve years in prison—the longest term received to-date for insider trading violations.  While working as a lawyer at prominent law firms (including Cravath, Skadden, and Wilson Sonsini), Kluger misappropriated nonpublic corporate merger information over the course of seventeen years.  Notably, Kluger’s sentence reflecting Kluger’s abuse of his legal position was longer than the eleven years handed to Raj Rajaratnam in the widely publicized Galleon case.

Also last week, in Japan, the Securities and Exchange Surveillance Commission (“SESC”) proposed to fine a U.S. broker dealer $185,000, a penalty much higher than what the SESC has sought in other recent insider trading cases.



Only a few months ago, the U.K. FSA fined a U.S. based hedge fund $11 million for selling shares in a company shortly after receiving indications of a possible stock sale.  This case is a reminder that professionals who obtain information through the exercise of their employment, profession, or duties should be particularly aware of whether they may be exposed to sensitive information along with its potential for liability.

China, too, may also become more active in cracking down on insider trading.  Sources report the Chinese government may broaden the definition of an insider and focus on government officials as well as corporate executives. 

In short, as financial transactions become increasingly globalized, it is clear that portfolio managers, traders, and compliance personnel need to be conversant in the legal and regulatory regimes of multiple jurisdictions.  Requirements surrounding the use of nonpublic information are particularly relevant as acceptable standards of behavior evolve; expect more activity on this front.

Deborah Prutzman

Deborah Prutzman is the founder and CEO of The Regulatory Fundamentals Group (RFG), a New York-based firm that designs and implements business and risk solutions for alternative asset managers and institutional investors. RFG's senior-led team employs a robust suite of tools, including practical alerts on new and potential industry developments and its powerful RFG Pathfinder® knowledge management platform which simplifies the challenges of operating in a regulated environment.  To learn more about The Regulatory Fundamentals Group call (212) 537-4058, email a representative at Information@RegFG.com or visit RegFG.com

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