Insider Trading: A Global Problem

Insider Trading: A Global Problem

Securities enforcement in recent weeks has been dominated by insider trading investigations and charges. The case which began with the founder of Galleon has already spawned multiple criminal cases, several guilty pleas and civil actions by the SEC. With the investigation continuing and a stream of confidential witness, there is little doubt that more deals will be made and more traders will be charged.
 
With all the focus on Wall Street, hedge funds and who is a confidential government informant wearing a wire or running a sting operation, it sometimes is easy to overlook the fact that insider trading is not confined to the U.S. markets. Insider trading is a problem which confronts market regulators around the world. In Japan for example, the Securities and Exchange Surveillance Commission and the Tokyo District Public Prosecutors Office are conducting a joint investigation into alleged insider trading by Hiroaki Denda, a top salesman with Prudential Life Insurance Co. and Hisashi Watanabe, a former executive board member of a firm affiliated with Tele Wave, now known as SBR. Both were arrested last Thursday in connection with possible insider trading charges in contravention of the Financial Instrument and Exchange Law.