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HFT firms don't care about insider trading. If they get exposed to it anyway, they have to shut down their active trading in that specific security for some tim
by vmception 5y ago
HFT firms don't care about insider trading. If they get exposed to it anyway, they have to shut down their active trading in that specific security for some time, and exclude it. Its not the only thing many firms do.
- throwaway2037 5y agoIn practice, there is no way to reliably know why a stock is changing price. There is lots of insider trading that is so small it does not materially impact the trading prices. As of date, there is no scientifically reliable way to measure "market impact" real-time. I assume the best HFT funds are trying to do this using AI/ML.
- vmception 5y agoRight, and that’s not a factor in insider trading charges. If a firm - that also has an agnostic active trading strategy - gets any inside info they have to cut the active trading strategy for liability reasons. That’s a conclusion some firms have made, not whether the SEC will actually bother them in a quantum reality or whether they can successfully defend it.