New Software From CCH Helps Companies Avoid Insider Trading Violations
rList Lets Firms Follow Best Practices and Restrict Employees from Inappropriate Trades
(RIVERWOODS, ILL., August 14, 2002) – Companies that are serious
about preventing conflicts of interest between the business they do
and the personal securities trading of their employees now can tap
into rList™, a browser-based tool from CCH INCORPORATED (CCH), a
leading provider of securities law information and software. rList,
developed in conjunction with CCH’s Compliance Tools Incorporated (CTI)
subsidiary, offers one of the most direct and efficient ways for a
firm to formulate best practices for their securities audit and
tracking program and to enforce compliance with insider trading rules
"Whether you consider the
New York Stock Exchanges proposed code of ethics, the recently passed
Sarbanes-Oxley Act on corporate reform or the outcry from
shareholders, it’s clear that individuals and lawmakers want
companies and their advisors to adhere to stricter insider trading and
corporate governance rules," said Peter Berkery, publisher for
CCH’s Securities Group.
"However, there can be dozens or even hundreds of individuals
within or advising a large company that are privy to information that
has an effect on the price of publicly traded securities," said
Berkery. There’s always the risk that these access persons could
misuse this information, particularly for front running, a type of
insider trading where an access person attempts to profit from prior
knowledge of an event by buying or selling securities."
Built by securities trade regulation experts, rList allows
organizations to maintain surveillance of their employees’ personal
trading against one or more restricted lists on a pre-trade and/or
post-trade basis, thereby monitoring against trading activity that is
illegal or does not conform to a company’s policy.
Fast, Seamless and Secure Trade Requests
rList accepts employee trade requests covering all security types,
including options and derivatives. It also supports multiple
restricted lists, for example, restricting insider trading of company
stock during blackout periods or other prohibited times. Companies
also can add other stocks to the restricted list, for example,
potential acquisition targets or pending business deals such as
partnerships or contract awards.
In addition to publicly traded organizations, accounting, merger
and acquisition, law, consulting and other types of professional firms
that have access to information affecting public companies can use
rList to ensure that their employees do not trade on insider
rList is fast and easy to use for both administrators and
employees. Administrators set security and access parameters as well
as maintain the restricted lists, which can be sorted in a variety of
ways, including by employee type or business unit.
When an employee logs on to rList and enters a trade request, rList
instantaneously checks the trade request against the lists of
restricted securities created by the company. The employee’s trade
request then is either approved or rejected depending on how his or
her status as an access person compares with the restricted lists.
The company’s data is secure and private, maintained on the
company’s own in-house servers, while rList components are
browser-based and run on the company’s Intranet. Users don’t need
to download or install any applications.
Comprehensive Reporting Capabilities
rList’s in-depth reports allow company compliance officers to
retrieve many types of reports including:
- Trade request reports, which catalog employee requests
- Restricted list reports, which list securities and or issuers
that are restricted
- Trade comparison reports, which identify patterns of potential
Availability & Pricing
rList is available immediately. For complete pricing information,
contact your CCH Sales Representative at 888 CCH REPS
(1-888-224-7377) or e-mail email@example.com.
About CCH INCORPORATED
CCH INCORPORATED, founded in 1913, has served four generations of
business professionals and their clients. The company produces
approximately 700 print and electronic products for securities, tax,
legal, banking, securities, human resources, health care and small
business markets. CCH is a wholly owned subsidiary of Wolters Kluwer
North America. The CCH web site can be accessed at cch.com.
The CCH Business and Finance Securities Group site can be accessed at business.cch.com/securitieslaw.
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