That information wasn’t publicly available to anyone who does not have a Bloomberg terminal. It wasn’t posted on Janus’s website. In fact, it took several minutes before it appeared in any place the general public has access to.
So is Bloomberg aiding insider trading? Of course not. It’s a journalistic enterprise whose right to report information is protected by the First Amendment. That’s true even if the information is ‘non-public’ and has obviously been leaked by an insider. And, although it’s less clearly spelled out in the constitution, the right to gate the information so that it is only available to subscribers is probably protected as well.
Bloomberg probably didn't commit insider trading because it breached no fiduciary duties in disseminating the information and, I assume, neither did their tipster. Although the SEC would like to change that rule, it remains the law of the land.
What John overlooks, in any case, is the <SARCASM>little known SEC exemption to the First Amendment</SARCASM>. The SEC has repeatedly run roughshod over speech protections. It has tried to get prior restraints against people who put out investment newsletters without registering under the 40 Act. It has argued that newspaper ads are proxy solicitations. It compels speech by mandating disclosures. The shareholder proxy rule compels the company to let some self-appointed yahoo put a proposal and supporting statement in the company's proxy statement. The proxy access rule compels speech by requiring the company to include shareholder board nominees in the proxy statement. The SEC has argued that newspapers owe fiduciary duties to the readers in connection with insider trading cases.
As far as the SEC is concerned, there is a tiny footnote to the First Amendment that says "The SEC is exempt herefrom." Unfortunately, it's been all too rare for courts to spank them.
