Insider Trading 2.0

"inviting the sharks into the pool"
9:12 am
Thu June 26, 2014

NYAG: Barclays lied to investors

New York Attorney General Eric Schneiderman file a suit alleging Barclays told investors that it had set up safeguards to protect them from predatory high-frequency traders. But it says Barclays actually catered to those traders.
Credit AP/John Minchillo

Large institutional investors have long been at the mercy of flash traders who use computers to make thousands of trades a second, skimming off tiny bits of profit from pension and retirement accounts. 

For protection fund managers sought out private stock exchanges called dark pools where only certain investors were allowed in. 

Think of them like a fish tank for guppies. 

"What Barclays is accused of is making promises that they would keep sharks out of the pool but were actually sort of inviting the sharks into the pool."

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Another push against Insider trading 2.0
5:08 pm
Wed April 30, 2014

Schneiderman: halt flash trading before the bell

New York Attorney General Eric Schneiderman has made it a significant push to crackdown on so-called "Insider Trading 2.0"
Credit PRNewsFoto/NYAG

New York Attorney General Eric Schneiderman announced Wednesday that he’s reached a deal with a newswire to prevent high frequency stock traders from having early access to financial news.  The agreement with PR Newswire is the third such deal Schneiderman has reached with a news service.   

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Campaigning against "Insider Trading 2.0"
5:47 pm
Wed March 19, 2014

Schneiderman takes another swing at high speed traders

New York State Attorney General Eric Schneiderman (file, 2013)
Credit AP Photo/Richard Drew

New York Attorney General Eric Schneiderman took aim at high speed stock  traders again Wednesday. He announced what he called an "agreement" with a newswire service to stop giving information to high speed stock traders before traditional traders. This is the latest in Schneiderman's campaign against what he calls "insider trading 2.0 "

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Not illegal, but "unfair"
5:18 pm
Wed February 26, 2014

Schneiderman: brokerages halt "insider trading 2.0"

New York Attorney General Eric Schneiderman says investment companies were taking advantage of non-public information.
Credit Charles Lane

New York Attorney General Eric Schneiderman says he's reached a deal with 18 investment banks to halt what he calls Insider Trading 2.0.  This is the latest in an ongoing investigation over something that isn't exactly illegal.  

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