What do you mean by: "Market makers, (not the traders who work for the firm)"
Market makers are traders who work for firms. So are arbitrageurs, sales traders, and proprietary traders. So are specialists, floor brokers, and some quants.
I never met a single market maker who sat on the board of a large corporation. The CEO's of the wirehouses might sit on the BoD's of corporations, but both their personal and firms' securities transactions are monitored by the SEC and NYSE or NASD for just such information usage.
It's called a "gray list" and falls not only under the provisions of the Insider Trading Act(s) of 1984 and 1988, but Rule 102 "Control and Syndication," Rule 14e-3 "Inside Information and Tender Offers," and others.
It's far too obvious and traceable of a scheme for someone to undertake. Sure, once in a while you'll hear something about an investment banker leaking information to a third party individual, but that's the bulk of it.
I'd be more suspicious of the non-brokerage corporation CEO's and execs who want a friend or family member to trade on material, inside information on an offshore basis to their benefit.
LPS5 |
