John At The Center

“There is a big distinction between information from corporate issuers and information from elsewhere, and information about companies and about the market,” said David Moody, a New York securities lawyer.

However, market participants say the Galleon case could have a chilling effect on the distribution of market “colour” – possibly affecting other hedge funds that trade frequently to make quick returns. “High-velocity hedge funds aren’t really about investing,” said one hedge fund founder. “It is a cat and mouse kind of thing, a game.”

via FT.com / Companies / Financial Services – Galleon paid banks millions for ‘edge’.