Re: Pricing intrusions

[mjr () nfr net (Marcus J. Ranum)]

> > > But the stock trading approach is risky too. The NY Stock Exchange claims 
> > > that they monitor every single brokerage account for suspicious activity. 
> > > If you make money most of the time just before earning are announced for a 
> > > handful of companies, they'll pick it up and cart you off to prison.

There was an interesting article in yesterday's USAToday about the
SEC. It mentioned that 10% of their case load is/was insider trading
deals: roughly 50 cases/year. They also described the approach used
to detect insider trades. Sounds a lot like a rudimentary statistical
anomaly detection system backended by basic detective work. I'd guess
from the description that over 75% of thier process is manual. I
suspect insider traders don't have a lot to be afraid of.

mjr.

--
Marcus J. Ranum, CEO, Network Flight Recorder, Inc.
work - http://www.nfr.net
home - http://www.clark.net/pub/mjr