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It's probably more accurate to think of insider trading as being about trading on privileged access to information. Being non-public is more about who could, in

It's probably more accurate to think of insider trading as being about trading on privileged access to information. Being non-public is more about who could, in principle, get that information rather than it being generally available. In the Brexit case, there couldn't be an insider issue as the polling companies aren't inside anything relevant. The grey area here is solely due to the law that says that exit polls can't be made public before the polls close. That is separate from insider laws but does relate to a question about what does "public" mean in that law. In principle you might fall foul of insider trading if you had privileged information from the BofE, say, that they were going to make an unexpected rate move before it was announced. Similarly, if someone on Theresa May's staff bet against the pound on Sunday night, there may be a case as killing the vote on Monday was sure to trash Sterling.

projectramo 8y ago
Do you have more about what is considered privileged access? That notion of privilege seems to be a slippery slope.
- lucozade 8y ago
  The UK legislation doesn't use the term: privileged. It essentially says insider information is information that, if it were public, would materially move the value of a financial instrument. But it's only really applied against someone who uses proprietary information that they gained by dint of their position or contact with someone in a privileged position. As with all laws like this, it's worded pretty vaguely so that the Court can use discretion.
- jmalicki 8y ago
  "Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security." https://www.sec.gov/fast-answers/answersinsiderhtm.html https://www.sec.gov/fast-answers/answersinsiderhtm.html
  - projectramo 8y ago
    And note definitions of insider: https://www.investopedia.com/terms/i/insider.asp https://www.investopedia.com/terms/i/insider.asp Insider is a term describing a director or senior officer of a company, as well as any person or entity that beneficially owns more than 10% of a company's voting shares. For purposes of insider trading, the definition is expanded to include anyone who trades a company's shares based on material nonpublic knowledge. Insiders have to comply with strict disclosure requirements with regard to the sale or purchase of the shares of their company. Note the strategic placement of "anyone"
- L_Rahman 8y ago
  It is an extremely slippery, the case law and enforcement are both murky and no one really knows what is going on. Here's Matt Levine again thinking about what insider trading even is and what constitutes privileged information: https://www.bloomberg.com/opinion/articles/2018-10-15/insider-trading-isn-t-so-simple https://www.bloomberg.com/opinion/articles/2018-10-15/inside...

projectramo 8y ago

Do you have more about what is considered privileged access? That notion of privilege seems to be a slippery slope.

lucozade 8y ago
The UK legislation doesn't use the term: privileged. It essentially says insider information is information that, if it were public, would materially move the value of a financial instrument. But it's only really applied against someone who uses proprietary information that they gained by dint of their position or contact with someone in a privileged position. As with all laws like this, it's worded pretty vaguely so that the Court can use discretion.
jmalicki 8y ago
"Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, on the basis of material, nonpublic information about the security." https://www.sec.gov/fast-answers/answersinsiderhtm.html https://www.sec.gov/fast-answers/answersinsiderhtm.html
- projectramo 8y ago
  And note definitions of insider: https://www.investopedia.com/terms/i/insider.asp https://www.investopedia.com/terms/i/insider.asp Insider is a term describing a director or senior officer of a company, as well as any person or entity that beneficially owns more than 10% of a company's voting shares. For purposes of insider trading, the definition is expanded to include anyone who trades a company's shares based on material nonpublic knowledge. Insiders have to comply with strict disclosure requirements with regard to the sale or purchase of the shares of their company. Note the strategic placement of "anyone"
L_Rahman 8y ago
It is an extremely slippery, the case law and enforcement are both murky and no one really knows what is going on. Here's Matt Levine again thinking about what insider trading even is and what constitutes privileged information: https://www.bloomberg.com/opinion/articles/2018-10-15/insider-trading-isn-t-so-simple https://www.bloomberg.com/opinion/articles/2018-10-15/inside...