The Securities and Exchange Commission of Brazil, CVM, is reportedly putting the finishing touches to a plan that will see it introduce automated analysis of trading behaviour in an effort to crack down on insider dealing.
CVM president Maria Helena Sanatana unveiled the plan at the annual meeting of the International Organisation of Securities Commissions in Tel Aviv, Israel, Bloomberg reports.
She said introducing constant computer-based surveillance of insider trading would encourage further investment in what is South America’s largest stock market.
“We will always be looking if there is a possibility of leaking and insider trading,” she commented.
Former CVM president Marcelo Trindade said in 2007 that insider information was leaked before nearly every merger and acquisition in Brazil.
The regulator is currently investigating a number of suspected insider trading cases. One probe is examining how Q4 earnings for the state-backed Petroleo Brasilero oil company were leaked just hours before their official publication.
Last February, CVM also launched a probe into share movements in the Banco do Estado do Espirito Santo bank in the days leading up to the announcement of a takeover talks with Banco do Brasil.
Source: Bobsguide, 15.06.2009