ABSTRACT
In order for MAD to constitute an eective regulatory mechanism, it must achieve its goals and secure a high level of compliance from member states and market participants (Parker et al. 2004). In this context, the denition of “inside information” is crucial to the ecient application of European insider dealing regulation as it is the term upon which all the duties set out in MAD are based. A clear and workable denition is essential. From a preemptive perspective, market participants must be able to identify “inside information” in order to disclose it and avoid dealing accordingly. From an enforcement perspective, a viable denition facilitates the successful prosecution of breaches and in doing so provides a sucient deterrent to potential wrongdoers. is chapter examines whether MAD provides such a workable denition of “inside information” and focuses in particular on the interpretation of this term in the United Kingdom and Ireland.
