English

Network-based Anomaly Detection for Insider Trading

Social and Information Networks 2017-02-21 v1 Trading and Market Microstructure

Abstract

Insider trading is one of the numerous white collar crimes that can contribute to the instability of the economy. Traditionally, the detection of illegal insider trades has been a human-driven process. In this paper, we collect the insider tradings made available by the US Securities and Exchange Commissions (SEC) through the EDGAR system, with the aim of initiating an automated large-scale and data-driven approach to the problem of identifying illegal insider tradings. The goal of the study is the identification of interesting patterns, which can be indicators of potential anomalies. We use the collected data to construct networks that capture the relationship between trading behaviors of insiders. We explore different ways of building networks from insider trading data, and argue for a need of a structure that is capable of capturing higher order relationships among traders. Our results suggest the discovery of interesting patterns.

Keywords

Cite

@article{arxiv.1702.05809,
  title  = {Network-based Anomaly Detection for Insider Trading},
  author = {Adarsh Kulkarni and Priya Mani and Carlotta Domeniconi},
  journal= {arXiv preprint arXiv:1702.05809},
  year   = {2017}
}

Comments

9 pages, 13 figures

R2 v1 2026-06-22T18:22:31.573Z