US securities regulators freeze assets in suspected insider trading

SEC seal in Washington

The U.S. Securities and Exchange Commission (SEC) said on Tuesday it obtained a court order last month to freeze the assets of unknown traders who posted more than $3.6 million (£2.93 million) in profits on potential illegal insider trading before Softbank announced a deal to acquire Fortress Investment.

The SEC has alleged that unknown customers of Singapore-based broker-dealer Maybank Kim Eng Securities and U.K.-based broker-dealer R.J. O’Brien Ltd. possessed material non-public information on the deal and purchased Fortress derivative securities known as contracts for difference (CFD). CFDs are prohibited in the U.S.

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The author Paul