Insider Trading

Frontrunning: September 23

  • Global Stocks Steady Despite China Slowdown (WSJ)
  • European Recovery Saves Markets From China Gloom as Stocks Rally (BBG)
  • Pope starts U.S. trip with tone of conciliation (Reuters)
  • FBI Said to Recover Personal E-Mails From Hillary Clinton Server (BBG)
  • Volkswagen chief faces grilling by board over diesel scandal (Reuters)
  • 'European Detroit' Fear Grips VW Company Town as Scandal Widens (BBG)
  • Berlin finds itself caught up in Volkswagen scandal (FT)

Head Of China's 'Goldman Sachs' Probed For Insider Trading As "Market Purification" Continues

Imagine for a moment the sentiment shock for mainstream Americans if Goldman Sachs' Lloyd Blankfein was probed for insider-trading and publicly scapegoated for causing a nation's equity market (and economy) to collapse. While it may be true, it would never happen in America... But in China, as part of what authorities call "purifying the markets," the president of China’s biggest brokerage has been swept up in a widening campaign to root out financial wrongdoing and assign blame for the nation’s $5 trillion stock rout. As Bloomberg notes, shares are falling further in today's markets as the probe of Citic Securities President Cheng Boming comes after the state-run Xinhua News Agency reported last month that four executives at Citic had admitted to so-called insider trading.

Frontrunning: September 15

  • China stocks resume sharp slide as economic worries mount (Reuters)
  • OECD head says sees further cut to global growth forecasts (Reuters)
  • The U.S. Dollar Is Gaining Like It's the 1980s — For Better or Worse (BBG)
  • Glencore Slumps to Record Low, Erasing Gains Since Debt Plan (BBG)
  • Woman killed, 400 homes destroyed by California wildfire (Reuters)
  • Why Morning Is the Worst Time to Trade Stocks (WSJ)
  • German Investor Confidence Damped by Weaker Emerging Markets (BBG)

ECB Bans Media From 'Behind-Closed-Doors' Speech To Hedge Fund Managers

Fool me once, shame on me; fool me twice, shame on you; fool me a third time, you must think we are all just idiots!! Following The ECB's Benoit Coeure "internal procedure error" where he leaked the imminent actions of the central bank to a group of well-heeled hedge fund managers - who proceeded to dump EURUSD ahead of the announcement, The ECB has decided - in all its arrogant wisdom - to decamp to Luxembourg to speak, once again, to participants in the world of high finance behind closed doors. The media aren’t invited (though the ECB will publish some prepared remarks from the board members.).

This Hedge Fund Made 15% Yesterday As The Market Tumbled

"Artemis Vega Fund LP and associated institutional managed accounts gained approximately +15.49% gross of fees on September 1, 2015 on a day the S&P 500 index lost -2.96%. Please note this performance was for the day....  Our models currently register a 30% probability the VIX will re-test highs above 40 in the next 21 days."

China "Punishes" Hundreds For "Maliciously" Manipulating The Market

China's Ministry of Public Security says the accused are very, very sorry for their actions, in which they "misled society and the public, generated and spread fearful sentiment, and even used the opportunity to maliciously concoct rumors to attack [Communist] Party and national leaders."

Chinese Stocks Slump After "Arrest-Fest", Yuan Strengthens Most In 9 Months, Goldman Cuts Outlook

Update: So much for the "no more intervention" - CHINA SAID TO ORDER BROKERAGES TO BOOST STOCK MARKET SUPPORT

A busy weekend in Asia was dominated by mayhem in Malaysia, and witch-huntery in China. Chinese authorities began a wide-scale crackdown on rumor-mongerers, arrested journalists, and even detained a regulator for insider trading, as they lifted loan caps on the banking system at the same as withdrawing (verbally) support for the stock market. China strengthen the Yuan fix by 0.15% to 6.3893 - this is the biggest 2-day strengthening of the Yuan fix since Nov 2014. Then just to rub some more salt in the wounds, Goldman cut China growth expectations to 6.4% and 6.1% respectively for the next 2 years. Chinese stocks are opening modestly lower (SHCOMP -3.3%).

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)