4 ms·

Are planned trades by insiders public information? Or are they only made public when the actual trade occurs?

by defen 11y ago

sokoloff 11y ago
Only made public some time after the trade occurs.
eitally 11y ago
The thing that confounds the situation a bit, for a large quantity of people, is that in certain industries and in certain roles, a huge number of people are considered insiders. For example, anyone at a corporation who can access sales or booking data is an insider ... including the poor CRM administrator in IT or the exec admin in the Sales office. Beyond that, though, in financial services firms it's entirely possible they might consider all employees insiders on all equities. Fidelity does this, for example, and they additionally require all employees' equity holdings solely to exist in Fidelity-managed accounts so they can actively audit for insider activity. This second case seemed more nutso to me than the first, but both are true -- I've lived them.
- peejaybee 11y ago
  A large swath of people where I worked a couple of jobs back were considered "covered portfolio persons" who had to pre-clear trades in all but a few classes of securities (basically open-ended mutual funds, and small trades in very large-cap equities) and report almost everything. We had to instruct any brokerage firms to send quarterly reports to our compliance department. I don't know if everybody was covered, but everybody in my group was.
  - sokoloff 11y ago
    Working for D. E. Shaw and later Merrill, we had duplicate trade confirms cc'd to compliance for all trades in all accounts. I didn't have to pre-clear trades in general, though there was a process to do so for some employees and for employees with questions about whether a contemplated trade was OK.
- marme 11y ago
  at amazon virtually everyone is considered an insider because almost everyone has access to the sales graphs that are used to track the health of the website and you can see detailed graphs of the revenue which only become public during the quarterly announcements. Basically anyone who had a company computer had access to this info so you were only allowed to trade amazon stock for like 15 days after each quarterly announcement. HR would send out emails saying when the allowed trading periods began and ended

Are planned trades by insiders public information? Or are they only made public when the actual trade occurs?

by defen 11y ago

Are planned trades by insiders public information? Or are they only made public when the actual trade occurs?

sokoloff 11y ago

Only made public some time after the trade occurs.

eitally 11y ago

The thing that confounds the situation a bit, for a large quantity of people, is that in certain industries and in certain roles, a huge number of people are considered insiders. For example, anyone at a corporation who can access sales or booking data is an insider ... including the poor CRM administrator in IT or the exec admin in the Sales office. Beyond that, though, in financial services firms it's entirely possible they might consider all employees insiders on all equities. Fidelity does this, for example, and they additionally require all employees' equity holdings solely to exist in Fidelity-managed accounts so they can actively audit for insider activity. This second case seemed more nutso to me than the first, but both are true -- I've lived them.

peejaybee 11y ago
A large swath of people where I worked a couple of jobs back were considered "covered portfolio persons" who had to pre-clear trades in all but a few classes of securities (basically open-ended mutual funds, and small trades in very large-cap equities) and report almost everything. We had to instruct any brokerage firms to send quarterly reports to our compliance department. I don't know if everybody was covered, but everybody in my group was.
- sokoloff 11y ago
  Working for D. E. Shaw and later Merrill, we had duplicate trade confirms cc'd to compliance for all trades in all accounts. I didn't have to pre-clear trades in general, though there was a process to do so for some employees and for employees with questions about whether a contemplated trade was OK.
marme 11y ago
at amazon virtually everyone is considered an insider because almost everyone has access to the sales graphs that are used to track the health of the website and you can see detailed graphs of the revenue which only become public during the quarterly announcements. Basically anyone who had a company computer had access to this info so you were only allowed to trade amazon stock for like 15 days after each quarterly announcement. HR would send out emails saying when the allowed trading periods began and ended