The Federal Bureau of Investigation is leaning on financial industry professionals to help them lead to possible illegal activities.
Bloomberg reported that the FBI has “openly solicited and stock-exchange workers to blow the whistle on possible front-running and manipulation via high-speed computers.”
The agency is among a growing list of federal authorities examining high-frequency trading, in which firms use sophisticated technological tools and computer algorithms to trade securities in seconds or fractions of a second.
Securities and Exchange Commission Chair Mary Jo White told lawmakers Tuesday that the agency is conducting “a number” of enforcement investigations of high-frequency and automated trading.
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.