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akhatri_aus | 7 years ago

Because the incentives can create stories that are untrue or corrected later.

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forkerenok|7 years ago

In this case (assuming intent) they would get charged by SEC, wouldn't they?

askmike|7 years ago

You can't design a system with (supposedly) misaligned incentives and hope the SEC will research everything and keep it fair. That would just shift the solution from:

"Write articles that move markets"

to:

"Write articles that move markets in a way the SEC won't find out"

Also how good do you think it would be for Bloomberg (from a PR perspective) if their reporters are getting charged left and right for market manipulation?

ccostes|7 years ago

I think this is where editors would come in who (presumably) don't have the same incentives.

Bud|7 years ago

Evidence suggests otherwise.

philipov|7 years ago

that's quite a presumption

manicdee|7 years ago

Having to correct a story minutes after a market movement has reaped the company millions in transaction fees seems like a small burden to bear.

frutiger|7 years ago

Bloomberg is not an exchange nor do they charge transaction fees.

tomp|7 years ago

Market manipulation is a prison-worthy crime.