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ARTICLE · 25 FEBRUARY 2010

Shadow Equity - The Darker Side of Insider Trading

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A look at the insider trading prohibition in section 1043A of the Corporations Act in the context of derivatives and proposed ASX listing rule amendments to company trading policies

AustraliaFinance and Banking
David Selig
David Selig
Nathan Greenfield
Nathan Greenfield

Shadow Equity - The Darker Side of Insider Trading

A look at the insider trading prohibition in section 1043A of the Corporations Act in the context of derivatives and proposed ASX listing rule amendments to company trading policies

As global capital markets improve, a number of insider trading charges brought by ASIC, together with recent warnings by the ASX, serve as a timely reminder of the tough stance being taken on those who trade securities with knowledge of undisclosed price-sensitive information. In addition, senior executive remuneration has never been subjected to more intense public and political focus.

It is in that context that many may not realise that the insider trading prohibition is not simply limited to trading in what are regarded as traditional securities, such as shares or options.

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