Insider Trading at satellite office

I did an internship in a satellite office of an EB. There I had access to information from other offices as well (their current deals), would anyone find out if I used my parents account to trade on our clients from other offices (Assuming I'm not using an option where I could make a massive gain, just a few thousand dollars).

Does anyone have insight on using information from friends who work at satellite offices from other firms? E.g. they share information from their NYC office with me, which I can use with my parent's account?

Obviously this is only a rhetorical question

EDIT: I'm referring to a satellite office in Continental europe, therefore the SEC shouldn't have any power.

 

Satellite office or home office is irrelevant, not sure what you're driving at there. The bank is the bank.

I have a loose understanding of how the SEC looks for stuff. Its basically two searches they do when a deal, earnings or other big stock-moving event occurs:

  1. They look up everyone who did well on the trade
  2. If its a deal, they ask the bank for the list of everyone who worked on the deal.

They take those two lists and search for any bridge between the two. SEC might only go as far as immediate family members, but its impossible to know how far they go unless you're Edward Snowden. There are obviously some arms of the government that have access to much more data that could pull the entire social circle of one list and match it against the entire social circle of the other list in one big game of Six Degrees of Kevin Bacon. Palantir helps the military find terrorists that way. I'm sure SEC's capability is less but how much less, I don't know.

If you think an individual will be able to explain a profitable trade as just good luck or won't stick out among all the market participants, think again. With almost everyone these days investing via mutual funds or index funds, and most individual traders being poor dummies, you'll stick out like a sore thumb if you pull off a good one with any notable amount of money.

 

I'm referring to satellite offices in continental Europe. I know for certain a bank that allows their Europeans to access the American files. Trading American stocks from Europe shouldnt have that many legal consequences, right?

 
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The SEC has, and will, come after offshore insider trading with offshore accounts by foreign nationals concerning US companies traded on US exchanges. Further, they have, and will, come after someone even if they used a family member's account to do the trades once they figure it out. There are plenty of enforcement actions/cases by the SEC with a similar scenario to the one you are describing - you can easily look up online.

Additionally, if you were an intern/employee at the place you plan to use the inside information from, you very likely signed some sort of NDA which would cover this issue as well.

Might I suggest you try harder at your job for a better pay/bonus instead of asking a public forum how to violate securities laws in order to only make "a few thousand dollars" - if you were truly a "Europe Target" you wouldn't have to resort to insider trading to make money.

 

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