Market Transactions and the Case of Insider Dealing: Drawing the Line Between Legal and Illegal Behaviour
Research output: Chapter in Book/Report/Conference proceeding › Book chapter › Research › peer-review
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Market Transactions and the Case of Insider Dealing : Drawing the Line Between Legal and Illegal Behaviour. / Hansen, Jesper Lau.
Regulating EU Capital Markets Union: Fundamentals of a European Code. ed. / Rüdiger Veil. Vol. I London : Oxford University Press, 2024. p. 154-169.Research output: Chapter in Book/Report/Conference proceeding › Book chapter › Research › peer-review
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TY - CHAP
T1 - Market Transactions and the Case of Insider Dealing
T2 - Drawing the Line Between Legal and Illegal Behaviour
AU - Hansen, Jesper Lau
PY - 2024
Y1 - 2024
N2 - The chapter explores the boundaries between legal and illegal behaviour in respect of insider dealing by examining the fundamentals of market transactions in order to establish the purpose of the ban. After observing the nature of voluntary transactions and, notably, George Akerlof’s Lemon Theory, the ban is placed within a theoretical framework where the Trinity of Information Regulation prevents the detrimental effects of information asymmetries and is balanced with the need to preserve competition among market participants, which is achieved by calibrating the notion of ‘inside information’. This leads to the conclusion that the ban is not about possession of inside information, but its abuse. The ban as articulated in Article 8 of MAR is examined as is the supplementary nature of Article 9. The chapter finishes by discussing the critique of the ban by Henry Manne et al and the need for reform in the proposed Listing Act package.
AB - The chapter explores the boundaries between legal and illegal behaviour in respect of insider dealing by examining the fundamentals of market transactions in order to establish the purpose of the ban. After observing the nature of voluntary transactions and, notably, George Akerlof’s Lemon Theory, the ban is placed within a theoretical framework where the Trinity of Information Regulation prevents the detrimental effects of information asymmetries and is balanced with the need to preserve competition among market participants, which is achieved by calibrating the notion of ‘inside information’. This leads to the conclusion that the ban is not about possession of inside information, but its abuse. The ban as articulated in Article 8 of MAR is examined as is the supplementary nature of Article 9. The chapter finishes by discussing the critique of the ban by Henry Manne et al and the need for reform in the proposed Listing Act package.
KW - Faculty of Law
KW - EU-børsret
KW - Børsret
KW - Insiderhandel
U2 - 10.1093/oso/9780192882660.003.0008
DO - 10.1093/oso/9780192882660.003.0008
M3 - Book chapter
SN - 9780192882660
VL - I
SP - 154
EP - 169
BT - Regulating EU Capital Markets Union
A2 - Veil, Rüdiger
PB - Oxford University Press
CY - London
ER -
ID: 385894420