PhDFirstly it is necessary to examine insider trading in corporate
securities in it's social and economic context. Before any discussion
of substantive regulation can meaningfully take place it 1s necessary
to consider such questions as the incidence of insider trading
and whether in fact it causes harm. In, particular the question of
'fairness' is considered, and the economic arguments sometimes
raised in support of insider trading explored.
Corporate disclosure is directly related to insider trading. The
ability of corporate insiders to abuse their positions is
obviously related to the effectiveness of company disclosure.
Furthermore apart from the effect corporate disclosure has on
the availability of information for investors, disclosure of
insiders transactions may discourage abusive trading and
assist in the enforcement of regulatory provisions. Disclosure
may also be used as a sanction. The impact of expanded corporate
disclosure policies and in particular the disclosure of price
sensativa information to employees is considered.
One or the main problems with anti-insider trading regulation is
the satisfactory determination of a definition for insiders. This
determination will set the scope of regulation. In drawing up this
definition attention must be given to the problem of 'tippee
trading' and the effect that such provisions might have on the
securities industry.
An extensive study of the present law relevant to insider trading,
in Britain, Australasia and Canada is provided with particular
reference. to the role of self regulatory authorities. Recent proposals
for anti-insider trading legislation in the United Kingdom are analysed.
At the heart of any discussion of insider trading must be the question
of enforcement Civil enforcement is discussed in the context of
derivative actions and class suits. The present structure of regulation
is analysed and a now enforcement agency is suggested. The crucial
availability of effective market surveillance-is discussed in the
context of the experience of other countries
