A ‘level playing-field’
Pages 5

In the short term, the ‘benefit’ to investors of active insider dealing on a market on which they also deal is a little hard to appreciate. For instance, its effect in ensuring a more accurate market price for securities has not been proven conclusively. Insider dealing might be a factor in nudging prices in a particular direction as the up-to-date position of a company becomes known to the market. But, in many cases, the disclosure of that information would have occurred regardless of any related insider dealing. It is therefore unclear whether permitting insider dealing per se would be likely to have much effect on the accuracy of share values.