Feb 28 U.S. authorities investigating possible
insider trading in ketchup maker H.J. Heinz Co are
studying a derivatives bet that was routed through London, the
New York Times reported, citing two people briefed on the
Industry watchdogs, including the U.S. Securities and
Exchange Commission (SEC) and the FBI, are investigating unusual
trading activity a day before Berkshire Hathaway and
Brazil's 3G Capital agreed to buy Heinz for $23 billion in cash
earlier this month.
The SEC has obtained an emergency order to freeze assets in
a Goldman Sachs Group Inc Swiss account linked to
suspicious trades in call options.
The SEC is now examining a product known as a
contract-for-difference, a derivative that allows investors to
trade on stock price changes without owning the shares, the New
York Times said. Such contracts are not regulated in the United
States but are popular in Britain, it said.
The Financial Industry Regulatory Authority (FINRA), Wall
Street's self-regulator, has also recently referred suspicious
stock trades to the SEC, the paper quoted one person as saying.
FINRA and the SEC declined to comment to the New York Times.
Spokespersons at Heinz and FINRA could not be immediately
reached by Reuters for comment outside of regular business