– The purpose of the paper is to discuss the SEC's increased willingness to pursue insider trading enforcement actions related to transactions that take place largely outside the USA.
– The paper describes several recent insider trading enforcement actions with international dimensions and the substantial cross-border cooperation among different countries' securities regulators that is required for cases to be successfully investigated. The paper draws conclusions and recommends steps for firms to take including a review of policies and procedures and how the firm receives and shares information, training programs, tailored protocols for ongoing monitoring and surveillance of trading activity, and contingency plans for possible future responses to insider trading problems and cross-border regulatory investigations.
– The SEC has in recent years shown an increasing willingness to pursue insider trading enforcement actions with substantial international dimensions.
– Internationally active firms should be aware of the breadth and intensity of the SEC's focus on cross-border insider trading matters and should prepare internal blueprints for how to respond to potential insider trading issues when they arise.
– The paper presents practical guidance from experienced financial services lawyers.
