Regulator to Automate Insider Trading Surveillance

By Tal Barak Harif
June 9 (Bloomberg) -- Brazil’s chief regulator said the country is starting a new surveillance system to detect insider trading.
The Comissao de Valores Mobiliarios, or CVM, is “just finishing” work on a system that will “automatize” analysis of market behavior and establish connections between the different participants, Maria Helena Santana said in an interview in Tel Aviv today.
“We will always be looking if there is a possibility of leaking and insider trading,” Santana said at the International Organization of Securities Commissions of regulators annual meeting in Tel Aviv this week. “In terms of enforcement, that’s one of the most important issues.”
A regulatory probe is “still going on” to determine how state-controlled oil producer Petroleo Brasileiro SA’s fourth- quarter earnings were leaked two hours before the official release on March 6, Santana said. The CVM is also analyzing the trading of Sadia SA and Perdigao SA shares before and after the companies said they would combine on March 16, she said.