August 18, 2021
Howard A. Fischer was quoted in a Law360 article. 'SEC's 'Shadow Trading' Suit Dives Into Murky Area Of Law'. The article discusses the SEC’s recent insider trading prosecution of Matthew Panuwat, who purportedly used inside information about an acquisition of his own company in order to invest in a competitor whose stock price he bet would also rise on the news. This is sometimes referred to as “shadow trading” – using inside information about one company to bet on another whose share price might be affected by the news.
Referring to his prior tenure at the SEC, Mr. Fischer said that this theory had been a subject of discussion among the staff at the agency, but that it had not resulted in prosecutions – until now. "Sometimes you have a theory, but you want to establish that theory in the law, and you need the perfect test case."
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