Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information.
Note that the above definition of insider trading from the U.S. S.E.C. website states that "Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information".
Does this not infer that those exchanges which permit early views of the order queue are guilty themselves of insider trading? Are they not providing early "tips" about orders coming down the line before the average investor can see them?
