NY AG Sees 'Insider Trading 2.0' As Growing Fraud Threat

Law360, New York (September 24, 2013, 2:55 PM EDT) -- Financial industry traders who can combine high-frequency trading with access to market-moving tips are building in huge advantages over average investors, New York's attorney general said Tuesday, adding that federal “gridlock” is allowing so-called Insider Trading 2.0 to flourish in a regulatory vacuum at the expense of public confidence.

Blinding speed coupled with early access to data gives small groups the power to manipulate markets in their own favor before anyone else knows what's happening, Attorney General Eric T. Schneiderman said at an investors' summit hosted...
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