The truth about insider trading. @turneyduff #HFT #InsiderTrading

I wonder if SAC Capital’s Steve Cohen sent Michael Lewis a thank-you note. Lately, it seems like all anyone can talk about is high-frequency tradingand the new book “Flash Boys.” But long before there was HFT, there was insider trading.

There’s a common perception (fueled by a rabid media) that insider trading is equivalent to getting Wednesday’s winning lottery numbers on Tuesday. Sometimes it is — but not often. Don’t get me wrong, if Rajat Gupta called me at 3:58 p.m. to say Warren Buffett is going to infuse Goldman Sachswith a $5 billion boost in the middle of a financial crisis, that would be like LeBron James stealing the ball and heading down court for a SportsCenter highlight.

Related Posts

  • 85
    A new book by author Michael Lewis describes how trading algorithms that detect and exploit tiny, fleeting profit opportunities, called high-frequency traders, have transformed the stock market. And not by ripping off middle class investors. But that doesn't mean there are no problems. Read on to understand what high-frequency trading is, and…
    Tags: trading, high-frequency, called, $, hft
  • 81
    The issues that remain un-addressed are most important, as flash crashes have significantly grown and the core legality of certain HFT practices remains unquestioned in most public debate Investment management magnet Cliff Asness has a problem with a Bloomberg View piece on High Frequency Trading (HFT) with particular focus on issues brought…
    Tags: hft, flash, trading, lewis, book, michael, boys
  • 81
    Fears that high-speed traders have been rigging the U.S. stock market went mainstream last week thanks to allegations in a book by financial author Michael Lewis, but there may be a more serious threat to investors: the increasing amount of trading that happens outside of exchanges. Some former regulators and…
    Tags: trading, #hft, high-frequency, michael, lewis, financial, book, hft
  • 81
    When hedge funds use bots to buy and sell stocks within milliseconds, they're not improving the market. They're rigging the market.   High-frequency trading (HFT) hedge funds. These funds use computer algorithms—a.k.a.: algobots—to buy and sell stocks at incredible speeds. We're talking milliseconds. The idea is to react to any market news or…
    Tags: trading, hft, high-frequency
  • 80
    The release of the latest Michael Lewis book, “Flash Boys,” and the subsequent report on “60 Minutes” has reignited the debate over the purpose and value of high-frequency trading (HFT). Like many innovations, HFT had some noble objectives when it first started (to improve both the cost and timing of…
    Tags: trading, hft, high-frequency, boys, flash, book, michael, lewis