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Earlier quoted context omitted.
Yes - so they're not released while the markets are open.
Just curious -- why does that matter? In either case there's a single moment wherein people can trade on it. Why is it better for that moment to be at 9:30 instead of say noon?
With this, people have a few hours to get the reports which means miliseconds matter less.
> said the same criminals also stole advance press releases sent to three newswire services Yeah I remember the charges against those people too Basically newswire services get hacked and people get the earnings reports beforehand SEC gets hacked and people get the earnings reports beforehand I think public resources shouldnt be spent on that. Prosecute the hacking but just drop the “trading on material non public in…
On the one hand, we want market prices to be accurate. This means we want people with material information to trade on that information.
On the other hand, we need some fairness in a market. This is mostly to ensure people keep trading. In a world were inside-info is commonplace, trading without it is just stupid. This would cut off a lot of people from investing.
The line needs to be drawn somewhere. The US approach of insider trading requires a broken 'duty to keep secret' isn't nice, but considering the above trade-off I think it is better than "All non-public information is off-limits". Especially because it captures the 'most disruptive' form of insider trading: people who work at a company that is getting acquired / going bankrupt.
Is there a reason why all SEC filing shouldn't be immediately publicly available?
https://www.nytimes.com/2017/07/07/business/dealbook/sec-ini...
Earlier quoted context omitted.
Yes - so they're not released while the markets are open.
Just curious -- why does that matter? In either case there's a single moment wherein people can trade on it. Why is it better for that moment to be at 9:30 instead of say noon?
Fixed release times also means that the companies submitting the filings cannot pick an advantageous time. Imagine if Musk was sitting atop a really horrible Tesla earnings report. If he could manipulate the exact time of its release he could leverage all sorts of things.
I'm more curious about how they hacked into the SEC database? Did they use an email trojan? Exploit an existing flaw or backdoor? If they did this via e-mail, who did they send the mail to?
I'm more curious about how they hacked into the SEC database? Did they use an email trojan? Exploit an existing flaw or backdoor? If they did this via e-mail, who did they send the mail to?
Looks like a way to say “exfiltrating data from the endpoints”.
> said the same criminals also stole advance press releases sent to three newswire services Yeah I remember the charges against those people too Basically newswire services get hacked and people get the earnings reports beforehand SEC gets hacked and people get the earnings reports beforehand I think public resources shouldnt be spent on that. Prosecute the hacking but just drop the “trading on material non public in…
Insider trading is a balance. On the one hand, we want market prices to be accurate. This means we want people with material information to trade on that information. On the other hand, we need some fairness in a market. This is mostly to ensure people keep trading. In a world were inside-info is commonplace, trading without it is just stupid. This would cut off a lot of people from investing. The line needs to be dr…
American insider trading law has nothing to do with fairness. It is based on theft of information. In this case, the hacker’s stole information from the SEC that belonged to the reporting companies.
(This is a commonly misunderstood alley of securities law.)
Dropping SSNs for natural persons would be a good idea.