Remote Tippees

On July 11th, Reuters noted that the July 8, 2014 acquittal of Rengan Rajaratnam, the younger brother of convicted insider trader Raj Rajaratnam, demonstrates the difficulty of prosecuting remote tippees. Remote Conviction.

Chicago Fed Suggests HFT Reforms

On July 10th, the Federal Reserve Bank of Chicago published an updated paper which makes nine recommendations for the equitable allocation of trades in high-frequency trading environments.

BSA/AML Enforcement

On July 9th, Reuters highlighted a relatively new Justice Department office, the Money Laundering and Bank Integrity Unit, and the tactics it is employing to identify banks which are violating the Bank Secrecy Act and anti-money laundering regulations. AML Enforcement.

Sentencing Commission

On July 7th, Reuters noted the U.S. Sentencing Commission’s June 2, 2014 notice in the Federal Register seeking comment on possible priority policy issues for the amendment cycle ending May 1, 2015. Among the issues identified as proposed priorities are the examination of the definition of economic loss, and role in the offense; a study of offenses involving fraud on the market; and a study of antitrust offenses, including an examination of the fine provisions for bid-rigging, price-fixing or market allocation agreements among competitors. Reuters focused on the antitrust proposal, highlighting a recent study which suggests that fines should be five times higher. Fine Revisions.

Fee Shifting

On July 11th, Reuters discussed the recent adoption by six small companies of fee-shifting by-laws. The corporate amendments would require the loser in a shareholder derivative lawsuit to pay the attorney fees of the winner. Fee Shifting.

International Regulators Conduct Securitization Survey

On July 3rd, the Basel Committee on Banking Supervision and the International Organization of Securities Commissions announced they will conduct a survey of the global securitization marketplace. The survey seeks to understand how securitization markets are evolving; to identify the factors that inhibit their development; to assess whether there are factors inhibiting the participation of investors; and to develop criteria to identify and assist in the development of simple and transparent securitization structures. The task force has established an online survey, which should be completed on or before July 25, 2014. BIS Press Release.