Chanticleer
New study finds insider traders using ETFs
Criminals with inside knowledge of M&A deals are now using ETFs to hide their insider trading from regulators, according to experts in illegal financial market behaviour.
The same financial market researchers who found that insider trading in stocks occurs before 20 per cent of takeover deals now say criminals are using exchange-traded funds to cover their illegal trading activity.
This method of avoiding the scrutiny of regulators is called “shadow trading” and it is widespread in financial markets, according to Vinay Patel and Talis Putnins from the University of Technology Sydney.
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