Is there such a thing as Insider Trading in Global Macro trading?

I haven't heard of any, but I could imagine that if you're say a global macro trader (rates,credit....etc) in a HF and your friend happens to work for some Central Bank/Ministry of Finance in an emerging market/developed economy, you could be making lots of money. I would consider that insider trading.... if you receive non-public information about possible interest rate changes/debt issuance/restructurings/export-import numbers...etc. And who exactly would enforce this? I bet there are some Global Macro HFs out there doing just that.

 

if you have somebody inside one of these institutions giving u non-public, material information then that is insider trading quite clearly....no different then somebody at a company giving out info. This is enforced by the same people who enforce insider trading laws in all markets...the justice dept in termw of criminal cases and various regulatory bodies like the CFTC, etc. This is a well-known issue, its not something that nobody is aware of.

 
Best Response
Bondarb:
if you have somebody inside one of these institutions giving u non-public, material information then that is insider trading quite clearly....no different then somebody at a company giving out info. This is enforced by the same people who enforce insider trading laws in all markets...the justice dept in termw of criminal cases and various regulatory bodies like the CFTC, etc. This is a well-known issue, its not something that nobody is aware of.

lol. I obv dont know anyone doing it but I'm pretty sure there are macro traders out there who do it. And yeah, there are plenty of insider trading cases out there but none of them, as far as I know, involve government inside information. all of them relate to companies. This is something that you just do not see.

 

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