SEC Asking For Real-Time Information to Detect Insider Trading

SEC is asking for real-time information to detect illegal insider trading. Here is why:

On August 12th, 13th, and 16th Juan Jose Fernandez Garcia, head of European Equity Derivatives at Banco Santander bought out of the money call options of Potash for $13669. On August 17th he sold his options for a profit of $576000. Do you think he was merely lucky? Banco Santander, employer of Mr. Garcia, was an advisor to BHP which made a tender offer to acquire Potash for a significant premium. More than 90% of the options bought by Garcia were due to expire on August 21st. Why would any buy call options with a strike proce of $130 and expires in a few days when the underlying stock is trading at less than $110?

Banco Santander, S.A. (ADR) (NYSE:SAN)

This is obviously an illegal insider trading case involving investment bankers. Garcia’s brokerage firm, Interactive Brokers, noticed the suspicious transactions and notified SEC. Interactive Brokers also bloked the transfer requests for most of the illegal profits. This is a successful enforcement by the brokerage company, not the SEC. Currently SEC does not have real-time access to market transactions by individuals.

Currently SEC has to make multiple requests to brokers to obtain transaction information about a specific security. Hey, no wonder they are slow in detecting illegal insider transactions perpetrated by securities professionals, lawyers, and accountants. SEC does not know which trades are suspicious because they don’t even see the trades. How do they investigate illegal insider trading then? If somebody complains or tips them about illegal transactions, then they start investigating the allegations. Maybe they just read WSJ or other financial websites to get ideas.

I am not going to delve into the discussion whether we should spend millions of dollars to set up a real time tracking system for the SEC. All I wanted to point at is SEC’s weakness in detecting illegal insider trading cases.

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!