The insider trading case against SAC Capital Advisors seems to be all about the trading “edge,” a term the firm’s owner, Steven A. Cohen, once said he hated. Under the securities laws, proving a violation requires showing that the information used was nonpublic, which means it was not already available in the stock market — the edge that can make for lucrative profits and sidestepping big losses.
The charges filed last week against Sandeep Aggarwal for tipping off a SAC portfolio manager to give that edge raise the question of when information is sufficiently confidential that its use constitutes insider trading.
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‘Enforcement 40’ for 2020
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