How does it violate Standard “mAterial non public info” ??
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Question : how is this a violation of material non public information?
Think of it this way,
For the clients that are allowed to trade for extended hours (when nobody else is allowed to do so), they can trade based on certain news that has come out after the close of market hours. (Say, company earning reports or company specific announcements, etc)
Other participants won’t be able to act on such information. The inability of market participants to act on this information, whereas this client can, is similar to being able to act on material nonpublic information, since the asset prices, or funds NAV will not yet reflect the changes that have taken place during those hours.
Please read this statement in the question
If the person trades after the market close it is trading on material non public information as no other person can trade with that information and the hedge fund can earn abnormal return….