1-Hour Program

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On August 17, 2021, the SEC brought a novel insider trading enforcement action focused on so-called “shadow trading”—i.e., using confidential information about one company to trade in the securities of an “economically linked” company. Nearly three years later, a jury took only several hours to find the Defendant liable for insider trading.

Insider trading is a perennial enforcement priority. The SEC’s unmitigated victory in the Panuwat case will likely embolden the Division of Enforcement’s pursuit of shadow trading violations. It may also motivate the Department of Justice to pursue criminal prosecutions in particularly egregious cases. In light of the heightened enforcement risk (and the overall aggressive enforcement climate), market participants should reassess and strengthen their compliance and supervisory regimes to address the risk of violations.

Please join our panel, which consists of five experts on insider trading, to address key questions in the wake of Panuwat, including:

  • What constitutes impermissible shadow trading? (10 minutes)
  • How is the SEC (and DOJ) likely to react to the government’s big victory in the first shadow trading enforcement action? (10 minutes)
  • What policies, procedures, and controls should regulated entities (e.g., broker-dealers, registered investment advisers) consider adopting to reasonably supervise and prevent shadow trading? (15 minutes)
  • What should a public company’s shadow trading compliance program look like? (10 minutes)
  • How else might the SEC look to expand its insider trading enforcement efforts? (15 minutes)

Faculty, all alumni of the SEC’s Market Abuse Unit within the Division of Enforcement, will offer their perspectives on the above key questions. The Market Abuse Unit is charged with pursuing the most sophisticated insider trading schemes, and is the source of the most significant insider trading enforcement actions and prosecutions since 2010 when the unit was founded. Our panelists will provide practical advice regarding how to comply with the evolving rules of the road related to shadow trading and will draw upon their knowledge as subject matter experts and to help entities refine their policies, procedures, and controls to minimize enforcement risk.

Who Should Attend: In-house counsel, outside attorneys, compliance, finance, and other allied professionals interested in insider trading enforcement

Program Level: Update

Prerequisites: None

Advanced Preparation: None


William Martin

O’Melveny & Myers LLP

Barry O’Connell

Davis Wright Tremaine LLP

David Oliwenstein

Pillsbury Winthrop Shaw Pittman LLP

Charles D. Riely

Jenner & Block LLP

Simona K. Suh

Sidley Austin LLP

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