Insider Trading

Frontrunning: August 27

  • Virginia TV journalists killed by suspect with 'powder keg' of anger (Reuters)
  • Policeman shot to death and three women stabbed, one fatally, in Louisiana (Reuters)
  • China Intervened Today to Shore Up Stocks Ahead of Military Parade (Reuters)
  • Margin Calls Bite Investors, Banks (WSJ)
  • "Computer glitch" is preventing dozens of mutual funds, ETFs from promptly pricing their securities (WSJ)
  • Oil prices rise more than 4 percent as equities rally (Reuters)
  • Oil Industry Needs Half a Trillion Dollars to Endure Price Slump (BBG)

China Devalues Yuan To Fresh 4-Year Lows, Arrests Top Securities Firm Exec As Stocks Slide Despite Rate Cuts

Update: Chinese Police arrested managing director Xu Gang of China's No.1 brokerage CITIC Securities

The Asia morning begins mixed in stock markets, The PBOC explains itself "this is not a shift in monetary policy," - except it is the first such set of measures since 2008, further deleveraging as China margin debt drops CNY1 Trillion from June peak to lowest since March, Regulators begin probing securities firms (and their malicious short sellers), Index futures trading fees will be raised and trading positions restricted. Stocks are limping only modestly higher (after the rate cuts) as Yuan is fixed at 6.4043 - the lowest since August 2011.

Frontrunning: August 11

  • China Rattles Markets With Yuan Devaluation (BBG)
  • China Move Sparks Wave of Yuan Selling (WSJ)
  • China's devaluation raises currency war fear as Greece strikes deal (Reuters)
  • Protests return to Ferguson streets, state of emergency declared (Reuters)
  • Heavily armed 'Oath Keepers' inject new unease to riot-hit Ferguson (Reuters)
  • Greece Secures Bailout Deal After All-Night Talks in Athens (BBG)
  • U.S. Identifies Insider Trading Ring With Ukraine Hackers (BBG)

US Supreme Court To Decide What Constitutes Insider Trading

Today, with just one day to go until Bharara deadline runs out to plead the SCOTUS to opine on redefining what "insider trading" means , we found out why Bharara had requested the extension: as Reuters reports, the U.S. Justice Department asked the Supreme Court on Thursday to reverse a federal appellate court's ruling that authorities said limited their ability to pursue insider trading cases.

Frontrunning: July 23

  • Greek PM keeps lid on party rebellion to pass bailout vote (Reuters)
  • Greek Prime Minister Alexis Tsipras Remains Popular Despite Tough Bailout Deal (WSJ)
  • Beijing's stock rescue has $800 billion bark, small market bite (Reuters)
  • Capital exodus from China reaches $800bn as crisis deepens (Telegraph)
  • Why Investors Shy Away From China’s $6.4 Trillion Bond Market (WSJ)
  • Oil Rigs Left Idling Turn Caribbean Into Expensive Parking Lot (BBG)
  • Bank of America replaces CFO in management shake-up (Reuters)
  • The Financial Buzz? Pearson to sell Financial Times (Reuters)
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In a first, the SEC has proactively approached several businesses to investigate failures in cybersecurity that may have created a new method of insider trading. The Commission’s investigation, along with a probe by the Secret Service, is focused on a group they’re calling FIN4 which they suspect to have broken into corporate email accounts to steal confidential information about mergers and acquisitions. Naturally, the SEC declined to comment exactly how broad their investigation is, or really anything else on the matter.

Overeducated Writer Explains Why He Defaulted On His Student Loans, Asks "If He Is A Deadbeat"

There are some valid points raised in Lee Siegel's 1100 word rant against college loans (if not so much against college education). There are some bad ones. But two things are is clear: the words "personal" and/or "responsibility" were used precisely zero times, and the op-ed writer, who described himself as "the author of five books who is writing a memoir about money", is hardly a glowing advertisement for an education attained (funded with either debt or equity) at one of the Ivy League's "best", Columbia University... that, or the return on money after wasting nearly a decade in university and taking out tens of thousands in loans to achieve a Master of Philosophy degree.

SEC Reads Zero Hedge, Launches Crack Down On Activist Hedge Fund "Idea Dinners"

Ten months after we asked whether "The SEC Is Asking These Hedge Funds Why They All Rushed Into Allergan Last Quarter?" we find that the US market regulator indeed reads this website on a regular basis. As the WSJ reports the SEC has answered our question, and yes: the  SEC is finally asking not only "these" hedge funds why they all rushed into Allergan, but into every other collusive activist take out target.

When Stock Buybacks Go Horribly Wrong

Of the $500 million KORS spent on buybacks in the past two quarters, it already has a paper loss of $200 million. Incidentally, KORS spent about $200 million on capex for all of fiscal 2014. Which, in a nutshell, is what happens when stock buybacks go horribly wrong.

Why Nav Sarao Had To Be Destroyed: He Found A Way To Beat The HFTs At Their Own Game

Today, we find precisely how and why Sarao was singled out: he not only ratted out the parasitic trading strategies of the real culprits behind the broken market, the massive HFT firms (such as Virtu which just went public just a day before the Sarao charges were filed) which gave the "regulators" no choice: one of them had to be put away for good, but found a way to capitalize on the algos' stupidity, and actually make money by beating them at their own game.  As such, regulators and exchanges such as the CFTC and CME had no choice but arrest him and prevent him from trading ever again!

Frontrunning: April 8

  • Shell Will Buy BG Group for $70 Billion in Cash and Shares (BBG)
  • IMF warns of long period of lower growth (FT)
  • Wall Street sanguine as it heads into worst earnings season in six years (Reuters)
  • Switzerland First With 10-Year Bond at Negative Yield (WSJ)
  • U.S. Dot-Com Bubble Was Nothing Compared to Today’s China Prices (BBG)
  • Rahm Emanuel Re-Elected as Mayor of Fiscally Ravaged Chicago (BBG)
  • Oil falls on U.S. stock build, record Saudi output (Reuters)
  • White South Carolina policeman charged with murdering black man (Reuters)
  • German Factory Orders Drop for Second Month (BBG)
  • A third of Republicans support Iran nuclear deal (Reuters)