Snigger

Suspect Trading Leads Germany to Change How It Releases Data
Suspicious patterns in the trading of currency futures, discovered in an analysis by The Wall Street Journal, helped prompt Germany’s statistics agency to stop sending the sensitive economic data to journalists before the figures are publicly available.

The logic runs this way.

German journalists are German professionals. German professionals would never trade on early release information given to them in the course of their lives as German professionals.

Err, yes.

6 comments on “Snigger

  1. To be fair, Tim, it did used to work this way. Financial markets were very high trust areas. People became aware of all sorts of things, in the course of their employment, but didn’t trade on the advantage it gave them. Because of the high trust & to preserve it. Someone who did so would be regarded as untrustworthy & they’d lose the advantage trust gave them in their other dealings. After all, were exchanging large amounts of money simply on a word.
    Back when the LSE was an actual trading floor, I can remember a dealer who crossed the line. Abused the trust protocol. Next time he went on the floor he found he was invisible. None of the other dealers could see him. Bit difficult that! Last day he was ever an SE dealer.
    Financial journalists were part of the same thing. There was knowledge that simply wasn’t used. Breaching the protocol would result in them being shut off from the channels of information provided them with the working materials of their career. Word’d go round & they’d no longer be financial journalists.

  2. And so Germany too slowly slides from being a High Trust society to a Low Trust one.

    Sad really. But I don’t think this is entirely down to immigration. It may be due to the Boomers embracing moral corruption and rejecting those Victorian values they mocked so much.

  3. A lot of it’s caused by credentialisation, SMfS. At one time people progressed on the basis of the merit assessed by their peers. Based on the knowledge gained from their peers. Absorbed the ethics along with it. Now it’s university degrees awarded by the incompetent with the ethics of gutter rats.

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