4 ms·

Sounds like trading on non public information and therefore insider trading to me.

• howard941 7y ago
  Should you recheck this understanding in case you're leaving money on the table? Trade all you like in the US on NPI if you're not in fiduciary position w/r/t to the info holder and aren't picked out expressly in the rules as an insider. The classic example is the cabbie trading on NPI gleaned from his passengers' conversations. At least this is what I gleaned from securities law classes. IAAL but IANYL so take it for what it's worth.
  • jcranberry 7y ago
    You're right that my knowledge of insider trading isn't strong but according to sec.gov the following qualifies as insider trading: >Employees of law, banking, brokerage and printing firms who traded based on information they obtained in connection with providing services to the corporation whose securities they traded; Correct me if I'm wrong, but that sounds like this particular situation to me.
    • stock_toaster 7y ago
      In this case, I think the "services" they are providing in conjunction with this offering would be to MasterCard, Apple, and the cardholder, so I don't thing they would be constrained with regard to anything else for /this data/. Though, I think it really depends on the agreements between MasterCard and Apple, about what data would be considered "misappropriated" though (see sweeneyrod's link[1]). They still couldn't /legally/ trade on things like "companyX asked us for a loan, so let's buy/short/etc companyX before they announce it", as that would be servicing companyX directly, and they learned the information (about the loan) from that servicing. [1]: https://news.ycombinator.com/item?id=20729529 https://news.ycombinator.com/item?id=20729529
      • jcranberry 7y ago
        Thank you for the response!