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What Is Shadow Trading?

By Kristi WaterworthUpdated Aug 15, 2025 at 3:02 AM

Key Points

  • SEC prosecutes "shadow trading" where traders use insider info to invest in linked firms.
  • Matthew Panuwat made $100,000 by trading options in a competitor based on MNPI.
  • Court still deciding Panuwat's case, which could define future shadow trading rules.

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