Abstract

This article, by Professor Yesha Yadav of Vanderbilt Law School, examines modern information flows by which securities are bought and sold and argues that the instantaneous processing of market information by high-frequency trading institutionalizes a group of “structural insiders” who can take advantage of information earlier than those on the outside. Yadav analogizes the advantages enjoyed by these structural insiders to those found in the context of corporate insider trading and asks why each is subject to different treatment under the law.

Keywords

SEC, Winans, Dirks, Supreme Court, information flows, informational access, securities markets, institutional actors, structural insiders, high-speed traders, structural design, trading alogorithims