SEC employee trading rules vs. Congress
Posted: Jul 06, 2024
- Questioning why Congress doesn't have similar restrictions on personal trading as SEC staff - Suggestion of having SEC ethics staff clear permissible trades for Congress - Proposal for pre-clearance requests to be made public on a central website before trading - SEC staff have bans on options and certain individual stocks, holding period requirements, and other restrictions - Links provided for further reading on SEC regulations - Title 5 of the Code of Federal Regulations contains Supplemental Standards of Ethical Conduct for Members and Employees of the Securities and Exchange Commission (SEC) - Members and employees of the SEC are required to comply with these standards, in addition to other regulations including the Executive branch financial disclosure regulations - Prohibited and restricted financial interests and transactions include limitations on purchasing or holding securities in entities regulated by the Commission, participating in initial public offerings, and engaging in certain financial transactions involving securities - Employees must report all securities holdings and transactions within five business days - Exceptions and waivers can be requested under certain circumstances, but employees remain subject to disqualification requirements - Outside employment and activities for employees must not conflict with their employment at the Commission and have restrictions on involvement with entities regulated by the SEC or the securities industry
🚨 Reddit sentiment: negative - Most comments express negative sentiments toward congressional trading practices and the perceived corruption and lack of accountability among politicians Summarized comments: - The SEC trading rules differ significantly from those for Congress members - There is a sentiment that politicians engage in corrupt activities and have preferential treatment in trading - Concerns about the lack of accountability in Congress for their trading activities - Comparison to the overturned Chevron Deference ruling impacting FINRA and SEC regulations for retail traders - Suggestion that SEC staff could front-run congressional trades
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