RE:Hedge fund Segantii Capital charged with insider tradingThe Segantii case adds to mounting scrutiny of block trading that has already swept up the likes of Morgan Stanley.
In a landmark case in January, the Morgan Stanley agreed to pay $249 million to settle US accusations that employees leaked deals to favored funds that bet against — or “shorted” — shares before block trades. The bank benefited because those funds then served as ready buyers for the stock, lowering any risk to Morgan Stanley’s balance sheet as it bid alongside competitors to win mandates.