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When you say "there aren't insider trading rules like there are for equities" Do you mean there aren't any at all or that they are different? I could see ther
by stonemetal12 3y ago
When you say "there aren't insider trading rules like there are for equities" Do you mean there aren't any at all or that they are different?
I could see there being different rules like "primary" players are allowed but "secondary" players aren't allowed. That way McDonalds could buy pork futures before the McRib comes back, but the CEO can't use insider info to front run pork futures before the McRib comes back.
- JumpCrisscross 3y ago> When you say "there aren't insider trading rules like there are for equities" Do you mean there aren't any at all or that they are different? Closer to non-existent. Same for foreign exchange. > different rules like "primary" players are allowed but "secondary" players aren't allowed Trying to delineate markets this way is how Enron became a quasi hedge fund while many banks busy themselves running warehouses. One set of rules is simpler and more efficient, particularly for something as utilitarian as commodities, where you're concerned with efficiency more than fairness. > the CEO can't use insider info to front run pork futures before the McRib comes back I don't think there would be a commodities violation in this. There could be a securities violation, in that the CEO is misappropriating gains that belong to the shareholders they have a fiduciary obligation to.