Over the river from the SEC’s Manhattan Office, an investigation was launched against Chris Christie in 2014. This investigation had nothing to do with the traffic he held up, but rather the funds he diverted from Port Authority to New Jersey roadways. Now a year later, there is no news on the outcome of the investigation. Determining how such an investigation affects his possibilities for a 2016 presidential campaign is a bit foggy.
Through the “broken window” approach, the SEC began prosecuting minor offenses with the theory that stopping the small violations will deter white-collar criminals from engaging in large-scale fraudulent activity. (Stoltmann, 2014)
Off the floor trades are the focus of a newly proposed amendment, which would require these high frequency traders become a member of a national securities association. This would require a floor trader to assist with off-exchange orders under the theory that on-floor transactions carry less risk. (Automated Trader, 2015)
Nothing but net is what an inside trader hopes to achieve. Ex hedge-fund manager Todd Newman was said to have gained illegal profits of 4 million. The outcome of the controversial case “United States vs. Newman” may make it harder to prosecute those who profit off inside information in the future. The controversy developed from the definition of insider trading being too broad, since Newman’s 2012 conviction was recently overturned based on “prosecutors had been too aggressive in their interpretation of the law.” (Viswanatha, 2015) This set the stage for others to be free from charges of insider trading. New rules regarding insider trading, “broken windows,” and off-exchange trading are meant to protect investors. However, the greater the steps to avoid another economic collapse from financial fraud, the more static there is to keep the line between right and wrong fuzzy.
"The Showdown". (1993). Retrieved from Youtube: https://www.youtube.com/watch?v=1shK-j_u6LI
Automated Trader. (2015, 03 25). SEC proposes off-exchange traders join national securities association. Retrieved 04 09, 2015, from Automated Trader: http://www.automatedtrader.net/headlines/153475/sec-proposes-off_exchange-traders-join-national-securities--association
Stoltmann, A. (2014, 12 22). The SEC's "broken windows' strategy is misguided. Retrieved 04 09, 2015, from Pensions&Investments: http://www.pionline.com/article/20141222/PRINT/312229993/the-secs-quotbroken-windows-strategy-is-misguided
Viswanatha, A. (2015, 04 03). Court Decision Foils Insider-Trading Cases. Retrieved 04 09, 2015, from The Wall Street Journal: http://www.wsj.com/articles/court-denies-government-request-to-reconsider-insider-trading-decision-1428077927