SEC Loses Major Insider Trading Case Involving Swaps

After a three-week trial, a judge in S.D.N.Y. dismissed the SEC's insider trading case against Deutsche Bank salesman John-Paul Rorech and Renato Negrin, a manager of the Millenium hedge fund.  The SEC alleged that the defendants shared confidential information about a debt restructuring and then traded swaps, but the judge said the SEC offered no evidence to support its allegations.  This case was the SEC's first to allege insider-trading in connection with swaps.  The court found that the SEC did have jurisdiction over insider trading in swaps.  WSJ, Judge Dismisses Charges in Major 'Swaps' Case.