Quote Currency is not an investment, and there is no inside information. What is next, I go to prison for phoning in my order ahead of time to the deli, or using carfax to get info before I buy a car? Inside information is defined as 'material non public information', i.e. if it's private and can move the price, it's inside information. The guy who is front-running you is also taking money from a third party who trades with him using your private information. Just like Rajaratnam who paid his informers took the money from the third parties. Whether you like this justification or not is a different story, i am just giving you the official line.Your site doesn't specify the market. As far applying this to currency i don't know regulation there. If you are talking futures or options on public exchanges which is at most 5% of forex volume, i suppose the same rules apply as for stocks. The bulk of trades is in spot, forwards, and currency swap, and i understand it all goes over the counter. So in fact large orders are phoned in and it is legal for banks to front run them with other banks if they can. The crucial difference of current arrangement is that scalp whores, i.e. clients that need spot transactions, phone orders to scalpers, aka banks. It's not some 'information about orders' that you propose to sell, it's orders themselves. The mechanism that you propose to control delivery of truthful information seems weak. Frontrunner pays money in your scheme and all he gets as a recourse if someone didn't trade or traded in an opposite direction is ability to rate someone badly? Reminds me 'Trading places' situation with orange crop report. 'Turn these machines back on...' moment.
Last edited by zerdna
on June 12th, 2012, 10:00 pm, edited 1 time in total.