SEC Cracks Down on News Release Interceptors
September 15, 2015
What’s better than a flash trade? I would suggest perusing news releases before the news releases are released. “SEC Takes $30m Pound of Flesh in Newswire-Hacking Scandal” reveals that the US Securities and Exchange Commission frowns on “trading on info swiped from press releases before they were made public.”
The write up reveals:
According to the SEC, two Ukrainian hackers compromised the wire services and then fed the stolen information to dozens of investors who made illegal (and highly lucrative) trades. The defendants are accused of violating the US Securities Act and the US Exchange Act.
Interesting. Will the SEC expand its crusade to ensure that news releases remain off limits to those who would exploit the financial system?
My hunch is that Martha Stewart type investigations and prosecutions are more appealing to some enforcement outfits. I have heard that there is a revolving door between certain financial outfits and US government positions. Chasing Ukrainians does not modify standard operating procedures. Do I have a pending folder named “hold ‘er”? I will check.
Stephen E Arnold, September 15, 2015
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