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Matt Levine

What's Next for Insider Trading Law?

Yesterday the U.S. Court of Appeals for the Second Circuit handed down a big decision in an insider trading case. A really big decision. Here is a TV segment titled "Did Appeals Court Ruling Legalize Insider Trading?" That kind of big. We talked about the decision yesterday, but today let's look into some more of the potential implications. 

Starting with: What will happen to this case? Everything can be appealed, but most of the time the buck stops with an appellate panel like the one that just reversed the convictions of Todd Newman and Anthony Chiasson. The government could still seek review of yesterday's decision, either by asking for en banc review in the Second Circuit or by petitioning to the Supreme Court. But this is a forceful unanimous decision by three respected judges, and it would be downright uncollegial for the circuit to review it en banc.  The Supreme Court, meanwhile, doesn't take that many cases and has, if anything, shown some inclination to limit rather than expand insider trading law.