Wednesday, December 08, 2004

Betting Ring Used Insider Trading to Win on Spread Betting

CSFB betting ring denies abuses

Here's a case of those poor overpaid City boys that like to dabble in spread betting - and got caught.

A betting ring consisting of 5 traders are on trial this week accused of using confidential insider information to make spread bets on share-price movements. They allegedly made hundreds of thousands of pounds.

One of the accused admits to passing across the confidential info, but not breaching criminal law. The other 4 deny all insider trading charges.

The defense do make an interesting case that 'spread betting based on insider information is not illegal, because it did not take place on a stock exchange' - also, at the time, spread betting was outside of the regulatory bodies governing insider trading (changed in March 2004)

Whilst the verdict will be interesting, this is more a case of "ingenious - but you've been caught" - I bet it was fun whilst it lasted though..

posted by jo @ 6:08 PM   0 comments

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