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Past Event
16 February 2012


  • Richard M. Rosenfeld
    T +1 212 506 2178

The FSA's Fine of Einhorn and Greenlight—What US-Based Traders Must Know About EU Insider Dealing Laws

On January 12, 2012, the United Kingdom’s Financial Services Authority fined US hedge fund manager Greenlight Capital Inc. and its owner, David Einhorn, more than £3.6 million each for trading on information that Einhorn received about an anticipated significant equity fundraising in UK listed company Punch Taverns plc. The information was received from Punch’s broker and management following a refusal by Einhorn to be “wall crossed”. He then gave instructions to sell all of Greenlight’s holding in Punch. Einhorn claimed that his conduct would not have been insider dealing in the US. The FSA accepted that his behaviour was not deliberate but still levied significant fines on him and Greenlight.

The case highlights the important differences between EU and US insider dealing/market conduct laws, about which all US based traders need to be aware to avoid similar fines.

Please join Angela Hayes and Richard Rosenfeld, Financial Services Regulatory & Enforcement partners from our London and Washington DC offices respectively, who will be discussing the differences in approach to inside information and insider dealing in the US and the EU, with a specific focus on when inside information on one side of the Atlantic will not be inside information on the other.

Mayer Brown's Global Financial Markets Initiative helps clients deal with the legal and business challenges resulting from the ongoing turbulence in worldwide financial markets. By mobilizing the firm's global resources from multiple practices and offices, the Initiative provides clients with knowledgeable and timely counsel on a broad spectrum of their legal needs.

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16 February 2012

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