Imagine an unregulated trillion-dollar market with hard-to-understand new-age assets ? a manipulator?s paradise.
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Since there have been markets, there has been manipulation. From the Mesopotamian merchant who had his thumb on the scale, to America?s first insider trade, markets will be manipulated simply because they?re there.

In 1792, less than two decades after the United State of America was born, American bonds were held to the same esteem as those of emerging markets today, fluctuating in value at the slightest bit of news about the former colonies that issued them.

As has been the case throughout history, information asymmetry has often played to a crafty (or dishonest) investor?s advantage, by allowing the clued-in to stay one step ahead of any news that would affect prices and positioning accordingly.
By the late 18th century, with the United States of America now one nation under God, then-Secretary of the Treasury, Alexander Hamilton started to restructure American finance by replacing outstanding bonds from the various colonies with a new central government bond.

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Big bond investors sought out people who had access to the US Treasury to find out which bond issues Hamilton was going to replace, because they stood to make a killing by swapping out colonial bonds for these ...