Top regulators testified before the Senate Judiciary Committee on Tuesday that they are concerned about insider trading and a lack of transparency among hedge funds.

“Insider trading by hedge funds remains a substantial concern to the division, and represents a significant focus of our current enforcement efforts,” said Linda Thomsen, head of the Securities and Exchange Commission’s enforcement division.

Because of their high trading volume and relationships with multiple prime brokers, investigating potential insider trading by hedge funds presents additional challenges, Thomsen explained.

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