FNG has learned that a number of leading (and not-so-leading) retail prop trading firms have begun to implement rules for their clients that restrict the trades that can be made (or, profit that can be booked) by traders immediately around major news events. The practice, known as News Trading, is a risky strategy whereby a trader takes a significant position in a security immediately before (or after) relevant economic or company/industry specific news is announced, that is likely to affect the price of the security. For example, taking a large long or short position in the shares of a publicly traded company right ... (full story)