4 ms·

If these trades were being done by DB or Citadel, there'd be a slap on the wrist. But if you're a rogue trader, or god forbid a lone 30 year old in your parents

If these trades were being done by DB or Citadel, there'd be a slap on the wrist. But if you're a rogue trader, or god forbid a lone 30 year old in your parents basement, off to the big house for you. If anything this just shows that the SEC has all the tools in the world to stop illegal activity, yet it does nothing, so long as you're part of the Wall street establishment.

tptacek 11y ago
I do not think you can support the argument that Citadel can steal pre-release press releases and trade on them with any evidence. We get it: you think the law is different from big firms and little firms. Stipulate that it in many ways is, and that still has nothing to do with this case, in which a large syndicate of criminals actually set up a SAAS business selling tradable pre-release press releases.
mark212 11y ago
really? so Steve Cohen isn't part of the Wall Street establishment? How about Raj Rajaratnam and Rajat Gupta -- the last a board member at Goldman. Just started his two year stretch in the federal pen.
- PhantomGremlin 11y ago
  I agree with you in general. There have been successful prosecutions which have resulted in significant jail time. Although the Supremes have yet to weigh in on the latest batch[1], and right now it's not looking good for the Feds. But I disagree with you about Stevie Cohen. Quite a few of his underlings took a fall, but he personally emerged scot free. He simply wrote a very big check and made his problems go away. He's busy managing his remaining billions in a "family office". [1] http://www.nytimes.com/2015/07/31/business/dealbook/us-asks-supreme-court-to-review-insider-trading-ruling.html http://www.nytimes.com/2015/07/31/business/dealbook/us-asks-...
- ConfuciusSay 11y ago
  LOL, Steven Cohen is your example of SEC getting it right? He's the best example of how the insiders are allowed to do it, while everyone else is not. As long as you call it an "experts network" and as long as you structure your corporate hierarchy properly you can do insider trading all day every day! Just ask Steven Cohen.
minimax 11y ago
But if you're a rogue trader, or god forbid a lone 30 year old in your parents basement, off to the big house for you. What? No. They broke into servers at PR Newswire and Business Wire and used the stolen MNPI to make trades. There is nothing about rogue or lone traders here. This was sophisticated international group of hackers and traders engaged in obviously illegal behavior.
monochromatic 11y ago
> If anything this just shows that the SEC has all the tools in the world to stop illegal activity, yet it does nothing, so long as you're part of the Wall street establishment. How does it show anything at all about what the SEC does with the establishment?

tptacek 11y ago

I do not think you can support the argument that Citadel can steal pre-release press releases and trade on them with any evidence. We get it: you think the law is different from big firms and little firms. Stipulate that it in many ways is, and that still has nothing to do with this case, in which a large syndicate of criminals actually set up a SAAS business selling tradable pre-release press releases.

mark212 11y ago

really? so Steve Cohen isn't part of the Wall Street establishment? How about Raj Rajaratnam and Rajat Gupta -- the last a board member at Goldman. Just started his two year stretch in the federal pen.

PhantomGremlin 11y ago
I agree with you in general. There have been successful prosecutions which have resulted in significant jail time. Although the Supremes have yet to weigh in on the latest batch[1], and right now it's not looking good for the Feds. But I disagree with you about Stevie Cohen. Quite a few of his underlings took a fall, but he personally emerged scot free. He simply wrote a very big check and made his problems go away. He's busy managing his remaining billions in a "family office". [1] http://www.nytimes.com/2015/07/31/business/dealbook/us-asks-supreme-court-to-review-insider-trading-ruling.html http://www.nytimes.com/2015/07/31/business/dealbook/us-asks-...
ConfuciusSay 11y ago
LOL, Steven Cohen is your example of SEC getting it right? He's the best example of how the insiders are allowed to do it, while everyone else is not. As long as you call it an "experts network" and as long as you structure your corporate hierarchy properly you can do insider trading all day every day! Just ask Steven Cohen.

minimax 11y ago

But if you're a rogue trader, or god forbid a lone 30 year old in your parents basement, off to the big house for you. What? No. They broke into servers at PR Newswire and Business Wire and used the stolen MNPI to make trades. There is nothing about rogue or lone traders here. This was sophisticated international group of hackers and traders engaged in obviously illegal behavior.

monochromatic 11y ago

> If anything this just shows that the SEC has all the tools in the world to stop illegal activity, yet it does nothing, so long as you're part of the Wall street establishment. How does it show anything at all about what the SEC does with the establishment?