‘Market information’
Pages 6

The second ‘special defence’ to a charge of insider dealing relates to the possession by an individual of information which amounts to what is termed ‘market information’.83 This was envisaged as being a specific sort of information which market participants involved in major transactions would necessarily and inevitably possess.84 An obvious example of market information could concern a person who has sold a large tranche of shares. Publication of that information might have an effect on the relevant share price as might the knowledge that someone intended to dispose of such a tranche.85 The relevant provisions in fact contain two defences, where an individual might otherwise be guilty of insider dealing through dealing in securities or through encouraging another person to deal in securities, where the information in question amounts to market information.