US parliamentarians require the SEC to take action to crack down on insider trading of corporate executives

[Global Times Comprehensive Report] Several Democratic Senators headed by Elizabeth Wallen are urging the US Securities and Exchange Commission (SEC) to take action to increase the "capacity of timely stock transactions" to combat corporate executives to use internal information. In a letter from the President of the SEC Gary Garus on the 12th, these members said that "cannot be allowed to be punished based on insider information."

US Securities and Exchange Commission Building.

Bloomberg said on the 13th that in the US business community, a stock trading procedure called the "10B5-1 trading plan" is very common. It allows the company's internal personnel to buy and sell stocks when they get some information that have not been disclosed. The executives avoid the charges of insider trading by publishing the time and methods of transactions in advance. In December last year, the SEC put forward new restrictions on this transaction plan. The SEC agency also put forward other suggestions, including forced insiders to sell its shares after determining its transaction plan for about 4 months.

It is reported that the SEC will require companies to disclose more information in the documents submitted to the regulatory agency. In the copy of the letter seen by Bloomberg, these senators require the SEC to decide the "calm period" between the transaction plan and the specific execution date from 120 days to 180 days, and stated that the delay time required to be applied to more should be applied to more to more. Staff. They also called for more restrictions on single transaction plans.

Earlier, many corporate executive stock trading cases caused questions about "insider trading". According to the Wall Street Journal, the stock price of Plug Power, a fuel cell manufacturer in January 2021, has soared to a new high in 15 years. Andrew Mash, who has long served as the company's chief executive About 40%of the shares he held in the transaction were sold at $ 36 million in net earnings. Shortly after he was sold, a series of negative news caused the company's stock price to plummet 60%. (Wang Huicong)

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