Defense Details Emerge On CDS Insider Trading Case

The defense against the first U.S. credit default swaps insider trading case will hinge on three points: that the CDS reference entities were not issued in the U.S. so the Securities and Exchange Commission cannot bring the case; the alleged “material non-public information” was public; and that there was no fiduciary agreement in place limiting the use of information provided to the purchase of bonds and not CDS.