4 ms·

UK rules differ from the US there is a 3-point test for insider trading: 1. The information has to be specific - Yes - you should sell Boeing 2. Would a reaso

by dia80 3y ago

UK rules differ from the US there is a 3-point test for insider trading: 1. The information has to be specific - Yes - you should sell Boeing 2. Would a reasonable investor take this information into account when making a decision to trade - Yes - this seems quite clear 3. The information must be non public - IIRC disclosure to a large group of people - in this case the perhaps 200ish people on the plane knowing it had a problem would probably count as the information being public and thus this test is not met and you are free to trade - I think the bar is around 30 people I knew all those hours spent in compliance training would come in handy one day!

Dracophoenix 3y ago
On the third point, what if the plane was privately-owned or chartered?
- user_7832 3y ago
  That's when you start counting the radio call to the tower + whatever other pilots are there in the area to hit the golden 30.
  - quickthrower2 3y ago
    On the plane you can see the hole in the side. That is more of a signal to sell than a mayday alone. Maybe.
yieldcrv 3y ago
The fourth point, which most comments seem to be missing: would a court and appeals court take that same stance? here in the US, quoting statutes on this topic is not useful because we also don’t have a specific statute, we have a couple of general fraud statutes that the regulator has contorted itself to fit scenarios in
aneryx 3y ago
So if this was a smaller plane with only 20 people on it, it could qualify as inside trading in the UK?
helsinkiandrew 3y ago
There's an interesting real world case of the distinction between US and UK/Europe rules about what is public from a few years ago. Someone acted on information from an overheard phone call on a train and was found guilty by a French court. https://www.bloomberg.com/opinion/articles/2019-03-29/deals-on-the-train-are-everyone-s-business https://www.bloomberg.com/opinion/articles/2019-03-29/deals-... Archive https://archive.ph/Imf75 https://archive.ph/Imf75

by dia80 3y ago

Dracophoenix 3y ago

On the third point, what if the plane was privately-owned or chartered?

user_7832 3y ago
That's when you start counting the radio call to the tower + whatever other pilots are there in the area to hit the golden 30.
- quickthrower2 3y ago
  On the plane you can see the hole in the side. That is more of a signal to sell than a mayday alone. Maybe.

yieldcrv 3y ago

The fourth point, which most comments seem to be missing: would a court and appeals court take that same stance? here in the US, quoting statutes on this topic is not useful because we also don’t have a specific statute, we have a couple of general fraud statutes that the regulator has contorted itself to fit scenarios in

aneryx 3y ago

So if this was a smaller plane with only 20 people on it, it could qualify as inside trading in the UK?

helsinkiandrew 3y ago

There's an interesting real world case of the distinction between US and UK/Europe rules about what is public from a few years ago. Someone acted on information from an overheard phone call on a train and was found guilty by a French court. https://www.bloomberg.com/opinion/articles/2019-03-29/deals-on-the-train-are-everyone-s-business https://www.bloomberg.com/opinion/articles/2019-03-29/deals-... Archive https://archive.ph/Imf75 https://archive.ph/Imf75