Columbia’s US SEC to tighten insider trading law, boost money market fraud resilience

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Columbia’s US SEC to tighten insider trading law, boost money market fraud resilience

US Securities and Exchange Commission (SEC), the Washington DC-headquartered capital market watchdog, founded over the ruins of 1929 Wall Street Crash, had proposed a string of new legislations on Wednesday which in effect would fritter away a legally safe-zone for corporates insiders to ‘enter’ or ‘exit’ positions of a company’s share, refining fishnets for money market frauds.

On top of that, the Washington-based independent agency of Federal Government had unfurled other rules to step up transparency on share repurchase programs alongside illicit insider trading activities like of Archegos collapse earlier this year.

If truth is to be spoken, latest move from US SEC Chair Gary Gensler to adopt a swathe of long-awaited changes aimed at bringing an end to corporate wrongdoings in the Wall Street and address inequities, would mark off a landmark event in Wall Street, whose institutional traders are often contemplated as utterly privileged.

Nonetheless, the proposed changes in US SEC, which will be subject to further review, in effect would affect a swathe of corporate America ranging from publicly traded companies alongside their leading executives to blue-whale asset managers like of BlackRock, Fidelity, Vanguard alongside Goldman Sachs among others.

US SEC proposes bill to halt insider trading activities

In particular, the proposed changes in laws include a tightening of “10b5-1” corporate trading plans, which main street traders often viewed as a loose string that allowed insiders to set the stages according to their stratagems and harvest benefits in exchange of ordinary traders.

Nevertheless, according to new US SEC proposals, the laws would enable insiders to trade on a pre-determined future date, while insiders would have to disclose their future trading plans which in effect would peter out potential allegations of insider trading.