In an op-ed, Profs. Menachem Brenner & Marti Subrahmanyam discuss their research on insider trading
— June 23, 2014
Excerpt from CNBC -- "We believe that trading based on inside information has negative externalities for the market as a whole and should be illegal, as it is, in many countries. Our study raises a red flag regarding activity in one area of the market, and hence, it may be worth paying more attention to the activity in the options market ahead of important corporate announcements. Does this evidence suggest that the U.S. stock markets are rigged? We do not believe so. There is possibly some rogue trading, but it does not necessarily have a major impact on M&A activity, and certainly not on the market as a whole."