[Noisebridge-discuss] Thoughts on anonymity and trading.

[dpc]

Jason Dusek <jason.dusek at gmail.com> writes:

>   A recent article in the Wall Street Journal discusses ways in
>   which insider trading helps to correct market inaccuracies.
>
>     http://online.wsj.com/article/SB10001424052748704224004574489324091790350.html
>
>   So, say we allow insider trading and it has this nice effect on the
>   market, that broken companies are known to be broken right
>   away. Won't insiders who trade be at substantial risk for punishment
>   by their employers should they ever be discovered? Is strong
>   anonymity a requirement for free markets where everyone -- not just
>   those outside an institution -- are able to "trade their
>   conscience"? What technical and administrative layers are required
>   to support authentic yet anonymous trading?

anonymity is interesting in some aspect, but part of the 'problem' w/
insider trading is that it violates one of the tenets of 'free markets';
that the participants have equal knowledge. 

this is like the recent furor over large trading houses being 'closer'
to the exchange than regular traders. consider the advantage that
time/information would give a large short position.

\p

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