(Very) Large trades already go through slowly unless you’re buying/selling a high volume stock at market. Also when they say insiders already heard the news it’s more like days ahead, not hours.
I think the problem with this act is AFAIK it states they have to report the trades 45 days AFTER they make them. Not before they make them. So they all just wait until 45 days later when it’s not relevant anymore. New news cycle, people forget
I remember a thread on this a few months back, and the problem is that most of these trades happen at the small windows in time where members of congress have information the public doesn't. While trades by members of congress have to be made public, there is a delay. If you buy/sell after the delay (up to 45 days), the performance isn't really going to correlate with what they're getting.
Meh, stocks trade after hours immediately after release so this excuse leaves something to be desired. It also doesn't account for the before open releases.
There is a substantial delay between the time of the actual trades and their filing, so any edge they might have had is long gone by the time you have access to the data.
That’s also why there are trading halts built into all major exchanges, so if something triggers a large fall, there is a circuit breaker in the decision process of 18-48 hours for people to process and digest information
The fact that the press release was made only 5 minutes before trading closed might, in fact, support this idea that it was aimed at automated trading as a human wouldn't have had much time to react to the news so close to the end of the day.
In this case, 30 days in advance. So it's much more like a transaction delayed by a few weeks, rather than one planned months/years in advance with no knowledge of how stock price will perform in the future.
Because you can’t make sure that all auctions happen at the same time. Consequently, news will disproportionately affect stocks having an earlier auction. That’s just one reason I’m mentioning.
hmm, its not only the activity just before the official announcement, but also, just after it. There is no way possible that people can just make make a trade 'after' hearing a report 100-200 milliseconds after the report.
The trading before the official announcement is a concrete proof, if this is official, and bug/error free. But then again, this is not my forte.
I don't see the issue here. Now that this is common knowledge, if you don't subscribe to the Thomson Reuters feed, DO NOT TRADE until 10am and the price has settled. Why would you ever participate in a transaction with someone who you know has more information than you, and you know this information asymmetry will be equalized within 5 minutes?
My guess is very common. Even if you just look at stocks before a major announcement, they usually start trading in the right direction a few hours before the announcement.
You'll find that even on some fairly large names there isn't all that much activity during the day. There's a lot of names, and there's a lot of trading in the auctions, so the total volume in the market won't result in a steady flow for a particular share.
My guess is it will stick out like a sore thumb if you buy x shares right before an announcement and sell x right after. Especially if you do nothing else. Pretty much as soon as you've exited a second announcement-trade red lights should be flashing.
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