Professional Services
Professional Services Firm
Full Credential Description
The client, an insider at a publicly listed company, faced a serious investigation by multiple exchanges and the SEC for potential trading misconduct, specifically concerning trading in the shares of his own company. The regulators were particularly focused on alleged "paint the tape" activities and disruptive trading that could distort prices on an intraday basis. This situation required the client to provide independent data analytics and economic analyses to address the concerns raised by the SEC.
To tackle this issue, we assembled a specialized team of financial data analysts and trading experts. Our approach involved several key steps: we collected and analyzed large volumes of trading and market data, interpreted trading documentation and communications, and forensically recreated best bid and offer (BBO) and exchange-level order sequences in relation to the client's trading activities. Additionally, we created risk positions and analyzed trade book performance, while also testing for indicators of market manipulation and assessing the price impact of the trading in question.
The culmination of our efforts was the compilation of detailed expert reports that were submitted to the SEC. Following the issuance of these reports, the SEC decided to halt its administrative proceeding against the client, effectively alleviating the immediate legal pressures and concerns surrounding the investigation.