The Commission is also analyzing “big data” to identify patterns of suspected insider trading. During a panel at the Securities Enforcement Forum 2019 on October 23, 2019, presented by Securities Docket, in Washington, D.C., Joseph Brenner, Chief Counsel of the SEC’s Enforcement Division, stated that 20% of the Commission’s insider trading cases are generated through data analysis by the Market Abuse unit. Brenner explained that analysts are able to compare trading activity both within and outside a period when suspects had access to material non-public information. For example, in the EDGAR hacking case, the data analysis showed that the defendants’ rate of investing successfully ranged from 70-98% within the period, but dropped to 0-50% outside the period, effectively eliminating any defense of coincidence.
via Regulatory Moves Show Financial Watchdogs Working Smarter, if Not Harder – Lexology.
