In the process of seeing and doing things, firm principals acquire “inside” info on the future value of their firm, and on the wisdom of particular firm decisions.
Contracts can deal with insider trading. Why not just cut out government regulation of insider trading - on the grounds that it is none of their business. I mean: apart from revenue lost by the government as a result of fewer fines. Currently, fines and disgorged profits collected by the SEC in insider trading cases are primarily routed to the U.S. Treasury.
Perhaps useful to add some kind of randomness to the auction to reduce risk of collusion between multiple info buyers, so as to cause the inside info to be priced in more quickly than if it were only known by a single actor who has an incentive to only price it in slowly so as to maximise profits.
Or you could just have the data acted on by an agentic AI that visibly trades paper money for the world to see. I’ve always thought the SEC’s approach to insider trading was bass-ackwards. What could be more valuable to the market, especially the retail market, than insider trading info and behavior?
That's... a good way to line up incentives. I tip my hat to you
Who would willingly trade with the auction winner, and why?
Contracts can deal with insider trading. Why not just cut out government regulation of insider trading - on the grounds that it is none of their business. I mean: apart from revenue lost by the government as a result of fewer fines. Currently, fines and disgorged profits collected by the SEC in insider trading cases are primarily routed to the U.S. Treasury.
Perhaps useful to add some kind of randomness to the auction to reduce risk of collusion between multiple info buyers, so as to cause the inside info to be priced in more quickly than if it were only known by a single actor who has an incentive to only price it in slowly so as to maximise profits.
Or you could just have the data acted on by an agentic AI that visibly trades paper money for the world to see. I’ve always thought the SEC’s approach to insider trading was bass-ackwards. What could be more valuable to the market, especially the retail market, than insider trading info and behavior?
Enron Syndrome.