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« Weighing the Week Ahead: Will There be a Signal from the Fed? | Main | What the Bond Rally Means for Stocks »

August 10, 2010


Joshua Chance

I think that legal rulings on these kinds of "social media frontrunning" will only be relevant for the specific firm (Fly in this case) but for the larger issue of restricting the flow of information, will be irrelevant. The distributed nature of social media and citizen journalism, and the sheer force of the trend will prove quite resistant to any attempts to regulate it. I see this as being very similar to the recording industry trying to crush filesharing. They might still win a few battles but the war was lost a while ago. The "Hacker Manifesto" had it right, "information wants to be free", and regardless of whether it should be free, it will.


I wish she would've alerted investors about the coming crash a few years ago and the continuation of the financial crisis.

Every time she interviews Peter Schiff, like this video, she's quite condescending.


"She said it was the responsibility of the financial firms to make sure their employees and their clients did not let the reports slip out if they wanted to prevent news coverage."

Of course, and the lawsuit is ridiculous but ... these financial firms are just trying to punish Fly with the legal costs and bellowing ... they know they aren't going to win this.

And of course, since it's big 'banks' it sucks even more.


Historically, analysts were on the institutional/block desk's P&L. Analyst reports went first to favored institutional clients who put orders for the stock through the block desk. When the news got out to the hoi polloi the stock price would move. Institutions that got the news but did not use the desk of the supplier of that news were "scrubbed" from the list of favored institutions.

At least one hedge fund manager started by watching the block ticker at the open and then buying in the morning and selling in the afternoon. What the fly on the wall is doing interferes with institutional front-running of retail.


Thanks Chris -- Link fixed.


Chris Tinker

Jeff - good piece - just worth noting that it is for the link above



Bullish! In order to fool the Quant Spider Bots (QSB's) , I would please ask everyone to put the word Bullish! into the the first word of every comment they make on every blog.

Jack Reacher

Maria was the master "Pump & Dump" artist. She personally ran JDSU, QCOM, CSCO to absurd levels.

Sorry, she's no professional. Well, maybe a professional actress.


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