New York state attorney general Eric Schneiderman announced on Tuesday a confidential hotline for reporting abuses in selling early access to market-moving data and high-frequency trading.
"When blinding speed is coupled with early access to data, it gives small groups of traders the power to manipulate market movements in their own favor before anyone else knows what's happening," Schneiderman said in a statement. "They suck the value out of market-moving information before it even goes public. That's 'Insider Trading 2.0, and it should be a huge concern to anyone who cares about the markets and the free flow of capital on which our economy depends."
In July, Schneiderman announced an interim agreement with financial information provider Thomson Reuters to discontinue its practice of selling a two-second sneak peek at the University of Michigan Survey of Consumers.
ABC News' Sandy Cannold contributed to this report.