Dan Brecher
Counsel
212-286-0747 dbrecher@sh-law.comFirm Insights
Mums the Word: Firms Agree to Restrict Early Access to Analyst Reports
Author: Dan Brecher
Date: March 17, 2014
Key Contacts
Back
Several prominent Wall Street firms have reached an agreement with New York regulators to end the practice of cooperating with surveys that provide early access to analysts’ opinions.
New York Attorney General Eric T. Schneiderman requested the deal as part of his investigation into the early release of analyst sentiment to preferred investors, a practice he has dubbed “Insider Trading 2.0.” Schneiderman argues that the surveys put investors at a disadvantage by giving traders a “sneak peak” at reports before they are released to the general public.
Last month, Schneiderman announced a similar agreement with BlackRock, under which the asset manager agreed to end its practice of surveying analysts regarding the firms they cover. According to the NY Attorney General, the design, timing, and structure of the surveys allowed BlackRock to obtain information from analysts that could be used to front-run future analyst revisions.
The latest agreements cover the survey respondents, Merrill Lynch, UBS Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, and Deutsche Bank Securities Inc. The firms have agreed to terminate their participation in any survey worldwide that relates to companies listed on U.S. exchanges.
“At my request, these firms have agreed to stop a practice that can offer an advantage to powerful clients at the expense of others,” said Schneiderman. “Our markets will only be fair and healthy if everyone plays by the same rules, which is why we will continue to take action against those who provide unfair advantages to elite traders at the expense of the rest of us. I applaud these firms for their leadership and cooperation.”
As the latest settlement highlights, insider trading — in all its potential variants — continues to be a top priority for state and federal regulators. Firms are advised to stay on top of current legal developments and seek the advice of experienced counsel regarding how best to achieve compliance.
If you have any questions about the settlements or would like to discuss how to best protect your company from insider trading allegations, please contact me, Dan Brecher, or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Blockchain, Cryptocurrency Defense & Investigations, Corporate Transactions & Business, Financial Services & Regulatory Practice
- Locations: New York City, Red Bank, NJ, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
When to Settle and When to Fight: A Litigator's Framework
Every lawsuit comes with a cost, and knowing when to settle a lawsuit is one of the most consequential decisions a business owner will face. Experienced litigators understand how to minimize cost and obtain certainty for their clients. For many business owners, the decision is viewed almost entirely through a financial lens: What will it cost […]
Author: Sean M. Pena
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.