Re:HSBC, Goldman Rigged Metals’ Prices for Years, Suit Says
by VLM on Wednesday November 26, 2014 @09:47AM
(#8662487)
By definition it wouldn't be fraudulent if it was legalized.
One interesting point is if it was legal, it would be in the open, and market forces might intensely force it out. You vs your ex- and future- coworkers in the regulatory agencies is pretty easy to outsmart, you vs every other player is harder to outsmart.
Another interesting point is in the olden days when stocks were traded by telegram and fractional prices and computers were human females with arithmetic skills, an abstract false market where we pretend there's no insider trading is simpler and simpler was computationally required. In 2014 thats not a valid argument anymore.
20 firms with 20 slightly false insider modified prices are just going to result in slightly wealthier arb players and slightly less false prices.
Rather than not knowing who will get screwed when by insider trading but there being a long term average cost to the economy of X making it all public would result in a known predetermined measurable and predictable cost of perhaps X/10 or X/100.
There are a bazillion different forms of insider trading, and this discussion would be somewhat separate from the classic trade secret brokering, where stocks trade hands before a confidential public announcement.
One interesting point is if it was legal, it would be in the open, and market forces might intensely force it out. You vs your ex- and future- coworkers in the regulatory agencies is pretty easy to outsmart, you vs every other player is harder to outsmart.
Another interesting point is in the olden days when stocks were traded by telegram and fractional prices and computers were human females with arithmetic skills, an abstract false market where we pretend there's no insider trading is simpler and simpler was computationally required. In 2014 thats not a valid argument anymore.
20 firms with 20 slightly false insider modified prices are just going to result in slightly wealthier arb players and slightly less false prices.
Rather than not knowing who will get screwed when by insider trading but there being a long term average cost to the economy of X making it all public would result in a known predetermined measurable and predictable cost of perhaps X/10 or X/100.
There are a bazillion different forms of insider trading, and this discussion would be somewhat separate from the classic trade secret brokering, where stocks trade hands before a confidential public announcement.