Insider trading? Asset managers including BlackRock allegedly received economic data in advance

Major Wall Street players allegedly received advance information on economic data. Now they are accused of insider trading.

Dreaded inflation figures from the US are causing turmoil in the markets. Promised interest rate cuts are becoming increasingly unlikely. This is one reason why markets are reacting negatively.

A new report from Bloomberg suggests that some major Wall Street companies knew about certain data in advance.

They received information that was not publicly available from an economist at the Bureau of Labor Statistics. This is part of the U.S. Department of Labor.

The economist kept a list of "super users" with whom he shared certain data on inflation.

Companies on the list include BlackRock, JPMorgan and several large banks and hedge funds.

In recent months, the economist has answered numerous questions about details of the consumer price index, usually regarding calculations in key categories such as housing and used cars. In doing so, he usually referred to his own calculations.

Mostly, he referred his users to relevant links on the government website. In at least one case, however, he also relayed information that was not publicly available and related to the used car index calculation.

The Twitter account "Insider Tracking," which tracks the money flows of CEOs, politicians and celebrities, wrote on Twitter, "This data gave traders huge advantages in their bets. How is this not insider trading?"

According to the agency, the incident is under investigation and is limited to one employee.

BlackRock is the world's largest asset manager. Its Bitcoin ETF, which has amassed more than $15 billion in Bitcoin, is licensed since January 11, 2024.