Investment Executive : FSA tackles illegal insider trading FSA tackles illegal insider trading The UK’s Financial Services Authority has unveiled a set of principles designed to guide the handling of inside information to prevent illegal trading.

naked capitalism: CFTC Head Says Weight of Money May Be Distorting Commodities Prices

From the comments:

The CFTC has allowed energy futures and derivatives to be traded on the electronic exchanges where there is no regulation, no position limits on contracts, no Large Trader Reports from its participants, and no routine auditing of larger transactions. If that wasn’t enough, they then allowed the largest electronic energy exchange, the Intercontinental Exchange (ICE), to use its terminals to trade U.S. crude oil futures and next allowed ICE trading of U.S. gasoline and heating oil contracts.

naked capitalism: CFTC Head Says Weight of Money May Be Distorting Commodities Prices "Our system was mainly designed to detect deliberate manipulation in the commodity markets," said Walter Lukken, acting chairman of the Commodities Futures Trading Commission. "But what’s being talked about now is the question of whether the massive amount of money coming into the markets is overwhelming the system."….

Ideoblog: The media and securities arbitration When Perception Changes Reality: An Empirical Study of Investors’ Views of the Fairness of Securities Arbitration.

Bank Lawyer’s Blog: The Big 4 and Subprime: Pawprints Everywhere, But Not A Big Game Hunter In Sight Much ink has been spilled over the last few days about the settlement between the rating agencies and NY AG Andy ("Little Eliot") Cuomo. Francine McKenna of re: The Auditors asks "When Will They Call CR On Auditors Too?" By "CR" she means "circular reasoning," and she lays out the arcs of the circle sequentially. There is also an unholy alliance between the rating agencies, their auditors and the companies bonds they rate and the auditors of these companies. The Big 4 are all over all of it. And yet, no regulator or congressman or other politician will raise the issue of these conflicts.

SEC Charges North American Clearing, Inc. With Misusing Customer Funds :: Stock Broker Fraud Blog The U.S. District Court for the Middle District of Florida has granted the Securities and Exchange Commission’s motion for emergency relief, including an asset freeze, to prevent North American Clearing Inc. from misusing customer funds. The general securities and clearing brokerage company is accused of using client funds to finance its daily operations and conceal its financial state.

Jim Hamilton’s World of Securities Regulation
Canadian Appeals Court Extends Revlon Doctrine to Bondholders

In a significant and groundbreaking ruling, a Canadian appeals court said that the Delaware doctrine requiring directors to maximize shareholder value through an auction process when a company is in play also applies to bondholders. In a unanimous decision, the Quebec Court of Appeals said that Canadian directors have a more extensive duty than that of directors of Delaware companies. The duty of care in Canada requires consideration of the impact of a takeover or leveraged buyout on bondholders as well as shareholders.