The slimier characters in the hedge fund industry will always find a way around the rules. Excessive regulation is not always effective regulation.
SEC investigates ETF use in insider trading by Kara Scannell, Financial Times
“The Securities and Exchange Commission is investigating whether Wall Street traders are using exchange-traded funds as a means of disguising insider trading…ETFs have emerged as a possible mechanism for maximising gains in one stock while potentially masking trading patterns, people familiar with the matter say…In one scenario, a trader could learn information about a company, buy an ETF that includes the company’s stock, and short sell the other stocks in the ETF.”
The following two tabs change content below.
Jeremy Jones, CFA
Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
- The Digital Currency Trojan Horse - November 14, 2018
- Private Equity’s Secret Sauce May Surprise You - November 13, 2018
- Did Apple Raise Prices too Much? - November 12, 2018