Know-Your-Counterparty's Representatives
The issue of how much information is available about counterparties remains problematic. Even more so is the question of information about their representatives, as a recent case shows.
On 6th November 2002, World Money Laundering Report: Online reported that Edward Seidle was trying to obtain permission to include approval from National Association of Securities Dealers to include in a directory the disciplinary history of members. See US: Publisher fails to open up NASD disciplinary information for the full story.
A broadly similar issue has arisen in relation to a database operated by the Securities Arbitration Commentator (SAC) and Commerce Clearing House (CCH).
In October of 2001, PIABA filed a declaratory judgment action in U.S. District Court in New Jersey seeking guidance from that court on PIABA's right to publish an arbitration awards database consisting in part of awards from a database made publicly available by SAC on a website maintained by the National Association of Securities Dealers. In response to PIABA's action, SAC and CCH, which was described as SAC's "project partner" in the public database, filed claims against PIABA and certain of its directors alleging copyright infringement and other wrongdoing.
On November 6, 2002, SAC and CCH agreed to dismiss all of their claims with prejudice against PIABA and its directors. Since the dismissal was with prejudice, PIABA dismissed its declaratory judgment action, also with prejudice.
The situation is not resolved: both parties withdrew their actions. The issue of information that may produce comment on the representatives of counter-parties remains live.
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