The Insider Trading "Possession versus Use" Debate: An International Analysis

Securities Regulation Law Journal, Vol. 34, No. 2, pp. 130-151, 2006

22 Pages Posted: 24 Jul 2008

See all articles by (Robin) Hui Huang

(Robin) Hui Huang

Chinese University of Hong Kong - Faculty of Law; 华东政法大学(East China University of Political Sicence and Law); University of New South Wales - Faculty of Law

Date Written: July 23, 2008

Abstract

This article aims to examine the "possession versus use" debate in the context of insider trading from an international perspective. It appears that the debate has so far largely occurred in the US with little research examining the positions of other jurisdictions. This article therefore conducts a comparative analysis of the legal responses to the issue in various jurisdictions, including the US, the UK, Australia and Canada. Indeed, the US debate traditionally lists only two approaches, namely the use standard and the possession standard. In contrast, at the international level, the treatment of the issue can be more appropriately categorized into four different approaches, including the strict possession, the strict use, the modified use and the modified possession standards. After a careful analysis of these four standards, it is submitted that the modified possession standard is most appropriate.

Keywords: Insider trading, possession, use, subjective elements

JEL Classification: K22, K33

Suggested Citation

Huang, (Robin) Hui, The Insider Trading "Possession versus Use" Debate: An International Analysis (July 23, 2008). Securities Regulation Law Journal, Vol. 34, No. 2, pp. 130-151, 2006, Available at SSRN: https://ssrn.com/abstract=1173002

(Robin) Hui Huang (Contact Author)

Chinese University of Hong Kong - Faculty of Law ( email )

Shatin, New Territories
Hong Kong
852-39431805 (Phone)
852-29942505 (Fax)

HOME PAGE: http://www.law.cuhk.edu.hk/app/people/prof-robin-huang/

华东政法大学(East China University of Political Sicence and Law) ( email )

1575 Wanhangdu Rd.
Changning, Shanghai 200042
China

University of New South Wales - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia
61-2-9385 9649 (Phone)
61-2-9385 1175 (Fax)

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