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Should Insider Trading In Credit Default Swap Markets Be Regulated? The Landmark Significance Of S.E.C. V. Rorech, Adam H. Reiser
Should Insider Trading In Credit Default Swap Markets Be Regulated? The Landmark Significance Of S.E.C. V. Rorech, Adam H. Reiser
Adam H Reiser
This paper analyzes S.E.C. v. Rorech by examining insider trading in CDS markets. Until the recent passage of the Dodd-Frank Act, CDS markets were left largely unregulated, and consequently provided a welcoming atmosphere for insider trading. While insider trading in securities markets has repeatedly been judicially condemned, some scholars have defended the practice as an effective mechanism to promote market efficiency and productivity. This paper asks whether the insider trading regulations currently imposed on securities markets should be similarly imposed upon CDS markets.