Part B Commentary, 2 Inside Information, Insider Dealing, Unlawful Disclosure of Inside Information, and Market Manipulation

This chapter looks at the MAR’s definition of inside information. For the purposes of this chapter, inside information is defined as information of a precise nature concerning directly or indirectly one or more issuers or one or more financial instruments. Such information has not been made public yet and, if it were made public, would likely have a significant effect on the price of the financial instruments it refers to or on that of the related derivative securities. This chapter embarks on an analysis of Article 7’s history and development, at the same time examining constitutive elements of the Article’s definition of inside information. The most significant addition introduced by the MAR here is the explicit reference to the fact that the intermediate stages in a protracted process may qualify as inside information.