Eric Schneiderman Is Focusing His Efforts On Next Level Insider Trading

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The practice of paying for an early peak at market-moving news isn't just insider-trading, according to Eric Schneiderman: It's Insider Trading 2.0®.

Eric T. Schneiderman, New York State’s attorney general, said on Tuesday that such trading – which he called “insider trading 2.0” – was still a focus of his office, which reached a settlement with Thomson Reuters over the issue in July….

That settlement covers only part of a continuing problem in the markets, Mr. Schneiderman said on Tuesday at the Bloomberg Markets 50 Summit in New York, calling the issue “far more insidious than traditional insider trading.”

“A new generation of market manipulators has emerged,” he said.

“Small but powerful groups within the market are able to use soon-to-be-public information combined with high-frequency trading to distort the markets in ways far worse than Ivan Boesky or Gordon Gekko could have imagined,” he said, referring to a convicted insider trader from the 1980s and a fictional character from the movie “Wall Street.”

New York Still Investigating Trading on Early Access [DealBook]

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