No Such Thing as Insider Trading Commodities

Insider trading has manifested itself in every WSJ in the last decade in some capacity. Congress is finally getting cracked down on. Equity trades on mnpi are certainly being prosecuted. I have heard that there is no such thing as insider trading in the commodities space.

What about bonds? Is insider trading permissible for bonds through some legal loop hole?

7 Comments
 

It's tough to have MNPI on commodities or currencies as there are not 'insiders' like there are with Corporates. All information that could theoretically impact prices is likely already known. Like someone said, it is more about manipulating the market than using MNPI to gain an edge.

On bonds I can't imagine how there would be a loophole to trade on MNPI.

 

No one has historically cornered a market. Even the JPM/HSBC Silver scandal was an extremely risky situation and only morons allowed it top happen. Insider trading has to do with "non-pubic information" about publicly traded securities. The retail investor is not around trading physical commodities with huge size.

Anyways, go ahead and try to use "insider information" and put on a massive position. As soon another factor changes your ass is handed to you.

 
Best Response
marcellus_wallaceNo one has historically cornered a market. Even the JPM/HSBC Silver scandal was an extremely risky situation and only morons allowed it top happen. Insider trading has to do with "non-pubic information" about publicly traded securities. The retail investor is not around trading physical commodities with huge size.

Anyways, go ahead and try to use "insider information" and put on a massive position. As soon another factor changes your ass is handed to you.

The Hunt Brothers pretty much cornered the silver market in the lat 70s, holding I think about half the rights to deliverable silver. Prices quadrupled. They made billions, but did eventually end up getting screwed when prices moved against them.
 
marcellus_wallaceNo one has historically cornered a market. Even the JPM/HSBC Silver scandal was an extremely risky situation and only morons allowed it top happen. Insider trading has to do with "non-pubic information" about publicly traded securities. The retail investor is not around trading physical commodities with huge size.

Anyways, go ahead and try to use "insider information" and put on a massive position. As soon another factor changes your ass is handed to you.

Ever heard of jesse livermore?

 

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