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Big data; Securities and Exchange Commission; SEC; securities law; securities regulation; geo-location; data mine; alternative data; information technology; IT; Investment Advisers Act; Securities Exchange Act; Elon Musk; Tesla; Puerto Rico; capital; assets under management; AUM; Department of Justice; DOJ; Rule 10b5; material
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Full-Text Articles in Law
Alternative Data And Insider Trading: Are Investment Managers Assleep At The Wheel On Big Data Use?, William Montemarano
Alternative Data And Insider Trading: Are Investment Managers Assleep At The Wheel On Big Data Use?, William Montemarano
Brooklyn Journal of Corporate, Financial & Commercial Law
The rapid rise of “big data” has transformed the way that professional investors make investment decisions. In addition, the intersection of the United States federal securities laws and the use of “big data” to inform securities trading lies in uncharted waters. The nuanced and factually-dependent securities laws are far behind industry practices, and the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have remained largely silent on the issue to date. This Note argues that this combination of murky laws and rapidly evolving business practices gives rise to legal and regulatory risk, and that investment managers leveraging …