Back in May 2009, the SEC generated significant publicity when it brought a case against Renato Negrin, a former portfolio manager at hedge fund investment adviser Millennium Partners L.P., and Jon-Paul Rorech, a salesman at Deutsche Bank Securities Inc., with insider trading in credit default swaps of VNU N.V. The SEC noted at the time that the case represented its first insider trading enforcement action involving credit default swaps.
The case is set to go to trial next week in federal court in New York, and has sparked a broader debate as to whether the SEC has jurisdiction to pursue it at all. Full details are available in this post on my Enforcement Action blog over at Compliance Week.