from Zero Hedge
“information of many macroeconomic announcements is known by some market participants in advance” – European Central Bank
Remember when it was merely another conspiracy theory that “some” traders “trade” (with zero risk) with the benefit of leaked material non-public information? As of moments ago it is merely the latest conspiracy fact, confirmed by none other than the ECB, which earlier today published a research paper which finds substantial “informed” trading before the official release in seven of 21 market-moving U.S. macroeconomic announcements.
The paper has studied trading patterns from Jan. 2008 to March 2014 and finds that “prices begin to move in the ‘correct’ direction about 30 minutes before the release time. The pre-announcement price drift accounts on average for about half of the total price adjustment.”