✦ LIBER ✦

Insider trading in futures markets: A discussion

✍ Scribed by Stephen J. Dinehart

Publisher: John Wiley and Sons
Year: 1986
Tongue: English
Weight: 585 KB
Volume: 6
Category: Article
ISSN: 0270-7314
DOI: 10.1002/fut.3990060212

No coin nor oath required. For personal study only.

✦ Synopsis

The Gold Room, Kinahan Cornwallis (1879 p. 5) oncern regarding "insider trading" in the futures markets has been voiced over C the past decade. ' The Securities and Exchange Commission7s (SEC) emphasis on insider trading in recent years and the discussion of regulatory parity between the futures and securities markets has heightened this concern. The Congressionallymandated and recently completed study of insider trading in the futures markets by the Commodity Futures Trading Commission (CFTC, 1984) is the most recent manifestation of this concern.

This article examines insider trading in futures markets. For this discussion insider trading is defined as futures trading while in possession of nonpublic information that is material to the pricing of the particular futures contract being traded. Insider trading does not imply the existence of a fiduciary relationship as is associated with securities market insiders. Although hedging in general could be considered insider trading as used in this article, insider trading excludes all trading based on information regarding present or anticipated cash or futures transactions to which the trader is a party.

The article initially discusses the transmission of information in futures markets

Views expressed are the author's and do not represent the views, opinions or positions of the Commodity Futures Trading Commission or its staff. The author would like to thank

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