Brattle Experts Highlight Economic Evidence Underpinning Shadow Trading Allegations in New Article
Published in Westlaw Today
In 2024, the US Securities and Exchange Commission (SEC) prosecuted its first insider trading case involving so-called “shadow trading,” the practice of using material non-public information (MNPI) to trade the securities of an economically related company, such as a competitor.
In an article recently published by Westlaw Today, Brattle experts discuss the case, SEC v. Panuwat, and other recent shadow trading matters, particularly the economic evidence underpinning the SEC’s allegations. The authors also discuss key findings from the academic literature on cross-firm economic linkages and shadow trading activities, highlighting key issues and implications that regulators, policymakers, legal counsel, and corporate stakeholders must consider when assessing shadow trading allegations.
The article, “Shadow Trading: Economic Evidence and Potential Implications from Recent SEC Insider Trading Cases,” was authored by Principals Nguyet Nguyen and Yingzhen Li and Associate Angela Golemac.
