Stackelberg financial-leader in insider trading model

2009 ◽  
Vol 18 (1) ◽  
pp. 123-131 ◽  
Author(s):  
Leonard F.S. Wang ◽  
Ya-Chin Wang ◽  
Shuang Ren
Keyword(s):  
Insider Trading ◽  
Trading Model

scholarly journals Linear Bayesian equilibrium in insider trading with a random time under partial observations

2021 ◽  
Vol 6 (12) ◽  
pp. 13347-13357
Author(s):  
Kai Xiao ◽  
◽  
Yonghui Zhou ◽  
Keyword(s):  
Insider Trading ◽  
Partial Information ◽  
Market Liquidity ◽  
Random Time ◽  
Dynamic Programming Principle ◽  
Unimodal Function ◽  
Market Makers ◽  
Market Depth ◽  
Bayesian Equilibrium ◽  
Trading Model

<abstract><p>In this paper, the insider trading model of Xiao and Zhou (<italic>Acta Mathematicae Applicatae, 2021</italic>) is further studied, in which market makers receive partial information about a static risky asset and an insider stops trading at a random time. With the help of dynamic programming principle, we obtain a unique linear Bayesian equilibrium consisting of insider's trading intensity and market liquidity parameter, instead of none Bayesian equilibrium as before. It shows that (i) as time goes by, both trading intensity and market depth increase exponentially, while residual information decreases exponentially; (ii) with average trading time increasing, trading intensity decrease, but both residual information and insider's expected profit increase, while market depth is a unimodal function with a unique minimum with respect to average trading time; (iii) the less information observed by market makers, the weaker trading intensity and market depth are, but the more both expect profit and residual information are, which is in accord with our economic intuition.</p></abstract>

Study of Signal Distortions on Behavior of Internal Traders

2013 ◽  
Vol 340 ◽  
pp. 876-880
Author(s):  
Tong Chang ◽  
Li Ming Gong
Keyword(s):  
Insider Trading ◽  
General Assumption ◽  
Trading Strategies ◽  
Risky Assets ◽  
True Value ◽  
Single Term ◽  
Trading Model ◽  
Signal Distortions ◽  
Internal Information

In this paper was based on Kyle (1985) model, considering the conduction problem of the value of internal information, and established a single term insider trading by trading model to consider the case of signal distortions for the true value of the risky assets. And studied the effect of internal information has on the nature of internal trading strategies and market under a more general assumption condition. And compare the conclusion with Kyle (1985) model.

Stackelberg real‐leader in an insider trading model

2010 ◽  
Vol 27 (1) ◽  
pp. 30-46 ◽  
Author(s):  
Leonard F.S. Wang ◽  
Ya‐Chin Wang
Keyword(s):  
Insider Trading ◽  
Trading Model

Attentive Insider Trading

CFA Digest ◽  
2015 ◽  
Vol 45 (3) ◽  
Author(s):  
Isaac T. Tabner
Keyword(s):  
Insider Trading

Opportunities for improving the insider laws: A comparative analysis of the practice in the USA and Russia

2020 ◽  
Vol 26 (4) ◽  
pp. 796-814
Author(s):  
E.K. Ovakimyan
Keyword(s):  
Financial Markets ◽  
Insider Trading ◽  
Negative Impact ◽  
Business Environment ◽  
Market Manipulation ◽  
Insider Information ◽  
Analysis And Synthesis ◽  
The Usa ◽  
Legislative Perfection ◽  
Definition Of

Subject. The article examines the laws regulating insider trading. Objectives. The study outlines recommendations for refining Law On Countering the Illegal Use of Insider Information and Market Manipulation and Amendments to Some Legislative Acts of the Russian Federation, № 224-ФЗ of July 27, 2010. Methods. The methodological framework includes a general dialectical method, analysis and synthesis, induction and deductions, and some specific methods, such as comparative and formal logic analysis to specify the definition of insider information, structural logic and functional analysis to improve the mechanism for countering insider trading and market manipulation. Results. We discovered key drawbacks to be addressed so as to improve the business environment in Russia. Although the Russia laws mainly mirror the U.S. laws, they present a more extended list of terms concerning the insider information. I believe the legislative perfection should be continued. Conclusions and Relevance. The study helps apply the findings to outline a new legislative regulation or amend the existing ones, add a new mention on the course of financial markets to students’ books, develop new methods for detecting and countering and improving the existing ones. If all parties to insider relationships use the findings, they will prevent insider trading crimes in financial markets and (or) reduce the negative impact of such crimes on the parties.

Insider Trading: A White-Collar Crime and its Impact on Share Market

Think India ◽  
2014 ◽  
Vol 17 (3) ◽  
pp. 22-24
Author(s):  
Sreekumar Ray
Keyword(s):  
Stock Market ◽  
Insider Trading ◽  
White Collar Crime ◽  
White Collar ◽  
Adverse Impact ◽  
High Ranking ◽  
Internal Information ◽  
Indian Stock Market ◽  
The Impact

Since inception, the growth of the Indian stock market has been constrained through unethical, illegal and self-actualized activities of swanky persons involved in different capacities in the market. The stock market was trying to retrieve itself from the devastating effect of Harshad Mehta share market scam, when within a gap of ten years it was once again pushed into the darkness of the dungeon by another demon-child of the country- Ketan Parekh. Corporations have been looted by the insider traders, diversifying internal information to an external in lieu of cash. Investigations in the majority cases have proved the involvement of the high ranking officers of the companies in the crime, sophistically referred to as white-collar crime. It has an adverse impact on the growth and sustainability of the share market. Under the light of the above issue, this paper endeavors to study the impact of such crime on the share market. It focuses on the mechanism behind the insider-trading, its impact on the share market and the regulators supervision on the issue. Finally, suggestions have been provided which will contribute towards the dream of every Indian-a fraud-free share market focusing towards the overall development of the country.

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