Bank of America Tightened Block Trade Rules After Esprit Deal

Bank of America Corp. adopted new block‑trade guidelines months after a deal now at the center of a criminal trial involving a well-known hedge fund, a Hong Kong court heard Monday.

Prosecutors said the Wall Street bank introduced at least two new policies for some equities sales and trading employees after its involvement in a 2017 block trade in the shares of Esprit Holdings Ltd.

The deal ultimately led to insider-trading allegations against Segantii Capital Management, its founder Simon Sadler and Daniel La Rocca, a former senior trader at the firm. They have all pleaded not guilty.

Bank ...