Inside information is information that is non-public and not generally available to non-insiders.
It is also information that has, or may have, a material effect on the price of a security listed on
a regulated market, if that information should become public. A person who has access to such
information may enjoy a significant and arguably unfair advantage over others in relation to
trading in securities.
The Financial Markets Act makes provision for the licensing and regulation of the activities of
and on market infrastructures, namely exchanges, central securities depositories, clearing
houses and trade repositories and also prohibits three forms of "market abuse", namely insider
trading, market manipulation and market disinformation.
An insider who has inside information is not allowed to trade on that information and is obliged
to disclose it publicly via appropriate channels.
Financial Markets lS with other financial sector regulatory laws under
umbrella of the Financial Services Board Act, 97 of 1990. The latter Act is about to be replaced
by a Financial Sector Regulatory Act. The proposed Act introduces a wide-ranging revision of
financial sector law and impacts particulary on the regulatory framework for enforcing the
prohibition of insider
abuse and insider trading.
The purpose of the dissertation is to analyse the Financial Markets Act and the proposed
Financial Sector Regulation Act and to evaluate the changes in insider trading regulation that
are effected by the Financial Sector Regulation Act.
Mini Dissertation (LLM)--University of Pretoria, 2017.