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http://www.reuters.com/article/us-usa-insidertrading-insight-idUSKBN12W2X4
When plumber Gary Pusey pleaded guilty in May to insider trading, it was a victory not just for New York prosecutors but for a little-known squad inside the U.S. Securities and Exchange Commission that uses data analysis to spot unusual trading patterns. Formed in 2010, the Analysis and Detection Center of the SEC's Market Abuse Unit culls through billions of rows of trading data going back 15 years to identify individuals who have made repeated, well-timed trades ahead of corporate news. The new strategy is starting to show results, enabling the SEC to launch nine insider trading cases, around 7 percent of cases the agency brought since 2014 against people who trade on confidential corporate information.
It signals a shift in how the agency initiates insider trading probes, which more often are launched based on referrals from Wall Street's self-regulator Financial Industry Regulatory Authority, or an informant's tip. "It's essentially the new frontier," said Andrew Ceresney, the SEC's enforcement director. "We have tremendous amounts of data available to use, and we've been developing tools to take advantage of that."
(Score: 3, Interesting) by frojack on Thursday November 03 2016, @08:52AM
From the all outcomes must be equal department.
As a kid in college I got summer jobs in a specialty paper packaging plant.
We would print and cut custom boxes for customers.
We knew about new beers on the market before they hit the stores.
I had no money in those days, but the geezers I worked with would watch these orders like a hawk, and they would buy stock in companies coming out with new mass market products or high end items like new TV sets (big thing at the time) and other household products, based solely on the boxes we were printing for them.
They insisted they were making money at it. But they were working in a paper mill so.....
I'm sure that would be illegal these days.
No, you are mistaken. I've always had this sig.
(Score: 2, Interesting) by Anonymous Coward on Thursday November 03 2016, @01:16PM
I wonder if it would be legal to use such a data analysis tool not for law enforcement, but to decide your own investments. That is, determine what the insiders are doing, and then do the same. Would that be insider trade on its own right, or would it be legal because, after all, the data used is not secret?