No EU Unusual Whales ETF Soon

Since I am based in Europe I researched what's the state accross the pond. Members of the European parliament do have to declare assets, however nowhere on that level of details^[1]. A good overview can be found on IntegrityWatch^[2] and there's also a good comparative study from 2023^[3].

An interesting idea is the "International Treaty on Exchange of Data for the Verification of Asset Declarations" that formulates common standards for asset declarations and their verification^[4]. Countries that have signed the treaty could signalize anti-corruptive stances and better standards in the financial markets like that. Seems like the idea still has to catch on since only four countries singed the treaty so far.

This weekend, I read an article about the impressive performance of an ETF that tracks the trades of elected officials in the United States^[5]. The ETF's success highlights the potential benefits of trading strategies based on the financial activities of these officials. In the U.S., trading based on private, non-public information is known as insider trading. Since 2012, a law requires that trades made by elected officials must be publicly declared, enhancing transparency and accountability^[6].

Curious about the situation in Europe, I researched the regulations across the Atlantic. Members of the European Parliament are required to declare their assets, but the level of detail is not as comprehensive as in the U.S^[1:1]. For those interested, IntegrityWatch offers a good overview of these declarations^[2:1], and a 2023 comparative study^[3:1] provides further insights into the differences between regions.

An intriguing concept is the "International Treaty on Exchange of Data for the Verification of Asset Declarations"^[4:1]. This treaty proposes common standards for asset declarations and their verification, aiming to promote anti-corruption measures and improve financial market standards. However, the idea is still in its infancy, with only four countries having signed the treaty so far.

It appears that the foundation for creating an EU equivalent of the Unusual Whales ETF, which tracks the trades of elected officials, is currently insufficient. The lack of detailed and publicly accessible trade declarations by European officials hinders the development of such a financial product. While members of the European Parliament must declare their assets, the level of transparency does not match the comprehensive requirements seen in the U.S. As a result, the necessary data to support an ETF based on the trading activities of EU officials is not yet available.