MyComplianceOffice Blog

The stability of the global banking system is a top-of-mind concern for everyone right now. And as the world worries about bank liquidity and the safety of their deposits, a handful of executives have been using access to insider information to turn staggering profits by selling off company stock.

Europe has been at the forefront regarding crypto asset regulation with its recently approved Markets in Crypto Assets (MiCA) legislation, which goes into effect in phases starting in 2024. It represents the most significant attempt by global governments to regulate the growing market for digital assets.  

The U.S. Securities and Exchange Commission adopted proposed amendments to Rule 10b5-1 to enhance disclosure requirements and investor protections against insider trading. According to the SEC release, "the final rules aim to strengthen investor protections concerning insider trading and to help shareholders understand when and how insiders are trading in securities for which they may at times have material nonpublic information."

The preservation of healthy financial markets relies on having safe, properly regulated environments where investors can confidently trade securities. Unfortunately, high-profile insider trading cases have grabbed the spotlight in recent years.

Cases of insider trading and securities compliance failures have made headlines in recent years. And for a good reason. Financial markets rely heavily on high liquidity, making it easy to trade securities without affecting price. However, when markets are manipulated, liquidity is affected, transaction costs can increase, and investor returns are reduced.