Jay Clayton, SEC chairman (AP Images)

Amid scruti­ny of ex­ec stock sales, SEC chair­man echoes calls for 'cool­ing-off pe­ri­od' in trad­ing plans

In a year when ex­ecs of vac­cine de­vel­op­ers fre­quent­ly came un­der scruti­ny for sell­ing stock in the wake of pos­i­tive news and stock surges, pre-sched­uled trad­ing schemes known as 10b5-1 are al­ways cen­tral to their de­fense. But now the chair­man of the SEC is call­ing for a re­think of that whole sys­tem.

Tes­ti­fy­ing at a Sen­ate hear­ing, Jay Clay­ton sug­gest­ed that lead­ers of bio­phar­ma com­pa­nies should be barred from trad­ing stock too soon af­ter they up­date their plans.

Endpoints News

Unlock this article instantly by becoming a free subscriber.

You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.