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Corporate Finance/Securities

Sep 02, 2021

Which Side Are You On? Municipal Broker/Dealer Takes Both Sides

On Aug. 26, 2021, the U.S. Securities and Exchange Commission (“SEC”) instituted enforcement proceedings against Rush F. Harding III, the 65-year-old co-founder of Crews & Associates, Inc. (“Crews”), a Little Rock, Arkansas, broker/dealer and municipal advisor, and against Crews for unfair dealings in the bonds of Ohio County, West Virginia.» Read More

Aug 31, 2021

Streaming Data: SEC Charges Netflix Trading Ring

On Wednesday, August 18, 2021, the U.S. Securities and Exchange Commission (“SEC”) charged three Netflix software engineers and two “close associates” with insider trading in Netflix shares that netted them over $3 million in illegal profits. They were caught by the SEC Market Abuse Unit, whose Analysis and Detection Center uncovered the operation using data analytic tools that identified the group’s “improbably successful” trading.» Read More

Aug 24, 2021

Who Will Watch the Watchmen? Audit Shortcomings

For The Wall Street Journal for Saturday/Sunday, August 14-15, 2021, a pair of reporters wrote: “Oversight is Weak of Private-Firm Auditing.” The article contrasts the degree of oversight of auditors of private companies with that of auditors of public companies. Since the passage of the Sarbanes-Oxley legislation in 2002, public company auditors are subject to review and discipline by the Public Company Accounting Oversight Board (“PCAOB”), a governmental body in turn supervised by the U.S.» Read More

Aug 10, 2021

Improving the Plumbing: The Fed Responds to the Group of 30 and Creates Two Standing Repo Facilities

On Wednesday, July 28, 2021, the Working Group on Treasury Market Liquidity of the Group of 30 issued a Report entitled “U.S. Treasury Markets: Steps Toward Increased Resilience” (the “Report”), which warned of material market fragility, especially with respect to the level of confidence in the market for U.S.» Read More

Aug 03, 2021

Insider Tips: And That IS “Bull”

On Friday, July 9, 2021, the U.S. Securities and Exchange Commission (“SEC”) charged Apostolos Trovias, a Greek national, with selling (from 2016 until early in 2021) what he termed “insider trading tips,” including prerelease earnings reports, on the Dark Web. Trovias, according to the SEC Complaint, operated using the “pseudonymous avatar ‘The Bull’.”» Read More

Jun 08, 2021

Fixing FICC: Agency Proposes Rule Changes to Encourage More Repo Clearing

On Tuesday, May 25, 2021, the U. S. Securities and Exchange Commission (“SEC”) issued a notice (the “Notice”) that the Fixed Income Clearing Corporation (“FICC”) had filed proposed rule changes intended to enhance the ability to clear certain trades, particularly those involving repurchase agreements (“Repos”) on FICC.» Read More

May 27, 2021

“Margin, I Have to Have More Margin:” The National Securities Clearing Corporation Proposes to Increase the Minimum Required Fund Deposit

On Monday, May 10, 2021, the U.S. Securities and Exchange Commission (“SEC”) issued a Notice that the National Securities Clearing Corporation (“NSCC”) filed a proposed rule change with the SEC to raise the amount of the Minimum Required Fund Deposit to be made and maintained by member firms using the NSCC.» Read More