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Traders Pay For Early Peek At Key Data

Thursday, June 13, 2013 - 7:33 AM
From The Wall Street Journal
On the morning of March 15, stocks stumbled on news that a key reading of consumer confidence was unexpectedly low.

One group of investors already knew that. They got the University of Michigan's consumer report two seconds before everyone else.

Infinium Capital Management, a high-speed trading firm in Chicago, used the information to launch a wave of trading in futures contracts, in just one example of the activity that followed. In a single second, according to a Wall Street Journal analysis, traders from various firms bet nearly seven million shares that equity markets would decline—which was exactly what happened when news of the survey became widely known.

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pearlbrownpearlbrown1,472 posts since
Nov 2, 2010
Rep Points: 6,392
1. Friday, June 14, 2013 - 10:09 AM
How is this different from Insider Trading?  Isn't that still illegal?  I always thought this was a big "no, no" for stock traders.  I do not have a subscription to WSJ so I could not get into the full info.  Is this Insider Trading?  Thanks.
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135