There is yet one more inside game on Wall Street to which Mom and Pop investors are not invited. Retail investors, it turns out, are being damaged by trades based on classified, private information that insiders pay for and – in just a matter of seconds – use to boost the returns on their trades.
Indeed, it’s kind of like being a “coach” passenger at the airport and watching the big shot “first class” passengers board first and being handed the best perks, all for a price. Except that passenger in coach wouldn’t even know how to make a bid on that luxurious seat in first class.
The Securities and Exchange Commission and certain states are scrutinizing how certain “High Frequency” traders might have received potentially market-moving information from the Institute for Supply Management ahead of the public.