The Securities and Exchange Commission (SEC) has launched a investigation into whether prime brokers offer insider information to hedge funds and other major clients in exchange for business. The regulatory agency has sought information from a number of major firms, according to a report in the New York Times. According to the report, the SEC is looking into allegations that firms earn favours by providing market-moving information to hedge fund clients who then trade at other banks, making it difficult to follow the trail.
SEC Probing Whether Prime Brokers Tip Off Hedge Funds
The Securities and Exchange Commission (SEC) has launched a investigation into whether prime brokers offer insider information to hedge funds and other major clients in exchange for business. The regulatory agency has sought information from a number of major firms,
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