Insider trading study shows stronger enforcement

October 23, 2014 in Other Sciences / Economics & Business
Insider trading study shows stronger enforcement

The first major study of the enforcement of Australia's insider trading laws has shown the number of insider trading cases brought by the Australian Securities and Investment Commission (ASIC) is increasing, and the regulator is having better success with its cases.

The recently-published study analysed all enforcement cases since legislation to regulate it was introduced in 1971.

Leader of the study and Melbourne Law School professor, Ian Ramsay said strong enforcement of insider trading laws was important to maintain investor confidence in the integrity of the , and also because compulsory superannuation means Australians are major investors in the financial markets.

"A key reason for undertaking this project was that evidence from international research has shown that strong enforcement of insider trading laws is associated with financial market development such as stock market capitalisation, trading volumes on stock exchanges, and the number of initial public stock offerings," Professor Ramsay said.

Key findings from the study included:

The research was undertaken by Professor Ramsay and Victor Lei.

Provided by University of Melbourne

"Insider trading study shows stronger enforcement" October 23, 2014