April 01, 2020

How to Report a Rogue Trader

Rogue trading often results in substantial losses to the institution that employs a broker, and is something the U.S. Securities and Exchange Commission (SEC) investigates, as it is a securities violation. But when you suspect a colleague or anyone else is engaging in rogue trading, you may be unsure of your next steps. 

Continue reading to learn what rogue trading entails and how you can report a rogue trader to the SEC. 

What Is Rogue Trading?

Some traders are given authorization to make trades and transactions on behalf of their employer, but when a broker is engaging in rogue trading, they are making trades without the authorization of their employer or client. 

Often, rogue traders can get away with these schemes while pocketing significant commissions, until their employer suffers a serious loss. Only then does the transaction or trade come under scrutiny. This can create serious issues for both financial institutions and the investors that use them. 

Reporting Your Tip to the SEC

There are several ways you can report a rogue trader. First, you can attempt to report your concerns to the brokerage firm’s internal compliance program—anonymously if you prefer. But, it is often recommended that you first report your tip to the SEC so the scheme cannot be covered up by the company in question. 

It may be in your best interests to retain legal representation prior to reporting your tip to the SEC so you can both remain anonymous when reporting and protect yourself from the risk of retaliation

Retain Help from an SEC Whistleblower Lawyer

To learn more about how to take action against someone you suspect of rogue trading or for help reporting the information you have to the SEC, reach out to an experienced SEC whistleblower lawyer at Meissner Associates. You can schedule a no-cost, confidential tip evaluation by filling out the secure contact form provided below or giving our office a call at 1-866-764-3100.