The investment landscape is changing rapidly and asset managers are finding themselves in an arms race for new forms of alternative data. Everything from mobile phone location data to internet of things (IoT) data about crop yields, are being scraped, sanitised, packaged and sold on to investment managers looking for an edge when making decisions.
But the brave new world of big data-driven investing is something of a regulatory grey area. At what point does some exclusive, real time look through into a company’s performance constitute insider trading? In legal terms this means trading on material, non-public information received in violation of a duty to keep it confidential.
via Should hedge funds be concerned about the risk of insider trading on alternative data?
