Daily Archives: April 8, 2009, 10:26 pm

May 8 Webcast — Hedge Funds: A Brave New World of Regulation and Enforcement

As Washington continues working to stem the tide of our Wall Street woes, it will soon turn to legislation aimed at the most sophisticated segment of the asset management world: the hedge fund community. What will investors and regulators make of all this? As important, what are the best and brightest of the hedge fund community doing to preserve their franchises, to shape new legislative provisions as Capital Hill and the SEC craft them, and to protect themselves in the face of regulatory scrutiny and exposures like never before?

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Securities Docket News Wire for April 8, 2009

Surge in FCPA Enforcement May Impact M&A Activity in Pharmaceutical Industry. http://is.gd/rtFp #sdx # SEC Seeks to Block Bid to Force Madoff Bankruptcy. http://is.gd/rtvL #sdx # The story behind India CBI’s Satyam investigation. http://is.gd/rt2h #sdx # Wealthier Managers More Likely to Commit Insider Trading. http://is.gd/rsYX #sdx # Corporate pension fund brings class action against custodian Northern Trust. http://is.gd/rqSJ #sdx #…

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Japan: Prosecutors Arrest Former Chairman of J. Bridge Corp. for Insider Trading

In Japan, prosecutors arrested Hidetaka Noda, the former chairman of investment firm J. Bridge Corp., today for alleged insider trading. The Japan Times reports that in May 2006, Noda allegedly sold 70,000 shares in J. Bridge Corp. while knowing that the publicly-traded company would revise its profit forecast downward.  Noda thus avoided a ¥20 million loss, prosecutors claim, when the…

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The Cassandra Challenge

As discussed in this post, a smart computer system called Cassandra (Computerised Analysis of Stocks and Shares for Novelty Detection and Radical Activities) may soon provide a better way to identify insider trading and flag false rumors and exaggerated claims intended to distort the market. That’s great and all, but how about that nine-letter acronym!!  Securities Docket challenges all readers…

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UK University Developing Smart Computer System to Detect Insider Trading

At the University of Sunderland in the UK, developers are working on a “smart” computer system that is designed to spot signs of insider trading and spin.  The Press Association reports that the system, which is known as Cassandra (Computerised Analysis of Stocks and Shares for Novelty Detection and Radical Activities), will track share movements and news headlines to identify…

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“History of Insider Trading,” 1611-Present

ProCon.org, which seems to delight in assembling more information about niche subjects than you thought ever existed (i.e., Congressional insider trading laws), has struck again.  Yesterday, ProCon.org released a new, detailed “History of Insider Trading” and, true to form, they take the history back to the year 1611 when the Dutch bourses were developed. Read the ProCon.org report

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Canada: OSC Pursues Biovail’s Melnyk for “Trucking Accident” Excuse for Earnings Shortfall

In Canada, the Ontario Securities Commission has commenced a hearing in its proceeding against Biovail Corp founder Eugene Melnyk, in which it alleges Melnyk used a trucking accident as an excuse for an earnings shortfall to protect Biovail Corp.’s (BVF) reputation and stock price.  The WSJ reports that an OSC lawyer cross-examining Melnyk at the hearing Tuesday argued that Melnyk…

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