WASHINGTON (Reuters) – The U.S. securities regulator on Monday warned corporate executives against insider trading during disruption caused by the coronavirus, in an unusual statement that underscores the chaos coursing through financial markets.
FILE PHOTO: The U.S. Securities and Exchange Commission logo adorns an office door at the SEC headquarters in Washington, June 24, 2011. REUTERS/Jonathan Ernst/File Photo
Company directors, officers, employees, consultants and other outside professionals who have access to material, nonpublic information should be “mindful of their obligations” to keep certain information confidential and comply with prohibitions against illegal securities trading, the co-directors of SEC enforcement said in a statement.
The warning comes amid growing concerns that some individuals may be gaining access to critical market-moving information ahead of the rest of the world, following a handful of suspiciously timed trades or price movements.