4 ms·

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...

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...