U.S. v. U.K. Insider Trading Laws: Who Is the Top Dog?

Abstract

A person charged with insider trading in the United States may not fall under insider dealing regulations in the United Kingdom because the two countries’ regulations contain explicit, key differences from one another. This Note considers those differences. Part II of this Note gives a background of insider trading laws and their progression through history in the United States as well as in the United Kingdom. This history is important for understanding the differences that still exist in the two systems today. Next, Part II lays out the statutory text of the insider trading regulations of both countries. Part III then moves on to compare the U.S. and U.K. insider trading regulations. Following the comparison is the strengths and weaknesses of each country’s system. Lastly, Part IV concludes with which countries’ system is more efficient and what each country needs to do to either sustain its regulation of insider trading or improve it.

Keywords: U.S., U.K., Insider Trading, Insider Dealing, Sec, Rule 10b-5, FSMA 2000, Criminal Justice Act 1993, Sec V. Cuban, Greenlight Case