Insider Trading Enforcement in 2022
Each year, the Department of Justice ("DOJ"), the Securities and Exchange Commission ("SEC"), and in recent years, the Commodity Futures Trading Commission ("CFTC") dedicate substantial resources to investigating and prosecuting illegal insider trading across U.S. securities and commodities markets. This past year, we have observed significant developments and emerging trends in the enforcement of insider trading laws and regulations. For example:
- 10b5-1 trading plans are under scrutiny and subject to new rules;
- The DOJ and the SEC are applying traditional insider trading concepts to digital assets;
- The Second Circuit Court of Appeals rejected the DOJ's arguments in Blaszczak II; and
- The SEC is pursuing novel "shadow trading" legal theories of insider trading liability.
This White Paper analyzes these developments and trends. In addition, at the end of this White Paper, we have summarized the federal insider trading enforcement actions filed in 2022.
Insights by Jones Day should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request permission to reprint or reuse any of our Insights, please use our “Contact Us” form, which can be found on our website at www.jonesday.com. This Insight is not intended to create, and neither publication nor receipt of it constitutes, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.
