High-frequency trading firms are being investigated by federal agents.
Bloomberg reported that the Federal Bureau of Investigation are examining whether traders use non-public information to trade ahead. The article added that even trades based on computer algorithms could potentially qualify as wire fraud, securities fraud or insider trading.
The FBI has convicted at least 79 hedge fund traders since it began cracking down on insider trading a few years ago.
The most-headlined insider trading case recently surrounds Steve Cohen’s Connecticut-based SAC Capital Advisors, which has agreed to pay a record $1.8 billion settlement after pleading guilty to insider trading in November.