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SEC gives over $700,000 reward to a whistleblower of high frequency trading: report
Moneylife Digital Team 02 March 2016
The US regulator is awarding more than $700,000, to a whistleblower who conducted a detailed analysis that led to a successful SEC enforcement action against NYSE
Eric Hunsader, a vocal critic of high-frequency traders, had said the Securities and Exchange Commission is sending him a $750,000 whistleblower award, says a report from MarketWatch.
According to the report , Eric Hunsader of Nanex LLC provided information to the SEC that led to a first ever fine against an exchange. "On 15 January 2016, the SEC confirmed it would pay 'more than $700,000' to a whistleblower that had provided the 'independent analysis as well as independent knowledge of securities law violations' that led to a $5 million fine for the New York Stock Exchange in 2012," the report says.
In a release, Andrew Ceresney, Director of the SEC’s Enforcement Division, said, "The voluntary submission of high-quality analysis by industry experts can be every bit as valuable as first-hand knowledge of wrongdoing by company insiders. We will continue to leverage all forms of information and analysis we receive from whistleblowers to help better detect and prosecute federal securities law violations.”
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
However, Hunsader showed MarketWatch a letter from the SEC that confirmed the approval of his award and told MarketWatch he was the recipient of a pending award for the tip that led to the NYSE fine. This is the first whistleblower award by the SEC under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 to reward an independent third party for analysis of a potential securities law violation, the report says.
The SEC’s whistleblower program has paid more than $55 million to 23 whistleblowers since the program’s inception in 2011. Whistleblowers who voluntarily provide the SEC with unique and useful information that leads to a successful enforcement action may be eligible for an award. Whistleblower awards can range from 10% to 30% of the money collected when the monetary sanctions exceed $1 million. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money is taken or withheld from harmed investors to pay whistleblower awards.
Comments
Meenal Mamdani
1 decade ago
I urge India's tax service to institute such a whistle blower program.

If the identity of the whistle blower is kept confidential, the tax service will be able to catch a lot of people like doctors, lawyers, retail shop owners, for under-reporting their income.

The award should be given high publicity to encourage many more to keep a close watch on the wrong doers.
Reply
manoharlalsharma
1 decade ago
only JEWELER can acknowledge the true value of DIMOND but,poor country like ours do not know price of INTELLIGENCE.
Reply
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