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Evidence of insider trading before September 11th

By: Paul Zarembka
Source: ITHP

This report addresses evidence of insider trading before September 11th, sometimes referred to by a broader phrase, informed trading. Insider trading refers to using private
knowledge of an anticipated event in order to profit financially by engaging in financial market transactions. In the first weeks after September 11, 2001 a number of financial publications called attention to substantial insider trading in put-options occurring before the attacks. Some of these early examples have been surveyed in Zarembka (2008, pp. 64-66, 69-71), while this book chapter also commented on certain exaggerations (e.g., an incorrect doubling of the put-option volumes). Quickly, commentary died out.