TY - JOUR
T1 - Exchange trading rules, surveillance and suspected insider trading
AU - Aitken, Michael
AU - Cumming, Douglas
AU - Zhan, Feng
N1 - Publisher Copyright:
© 2015 Elsevier B.V.
PY - 2015/10/1
Y1 - 2015/10/1
N2 - We examine the impact of stock exchange trading rules and surveillance on the frequency and severity of suspected insider trading cases in 22 stock exchanges around the world over the period January 2003 through June 2011. Using new indices for market manipulation, insider trading, and broker-agency conflict based on the specific provisions of the trading rules of each stock exchange, along with surveillance to detect non-compliance with such rules, we show that more detailed exchange trading rules and surveillance over time and across markets significantly reduce the number of suspected cases, but increase the profits per suspected case.
AB - We examine the impact of stock exchange trading rules and surveillance on the frequency and severity of suspected insider trading cases in 22 stock exchanges around the world over the period January 2003 through June 2011. Using new indices for market manipulation, insider trading, and broker-agency conflict based on the specific provisions of the trading rules of each stock exchange, along with surveillance to detect non-compliance with such rules, we show that more detailed exchange trading rules and surveillance over time and across markets significantly reduce the number of suspected cases, but increase the profits per suspected case.
KW - Exchange trading rules
KW - Insider trading
KW - Law and finance
KW - Surveillance
UR - https://www.scopus.com/pages/publications/84937492178
UR - https://www.scopus.com/pages/publications/84937492178#tab=citedBy
U2 - 10.1016/j.jcorpfin.2015.07.013
DO - 10.1016/j.jcorpfin.2015.07.013
M3 - Article
AN - SCOPUS:84937492178
SN - 0929-1199
VL - 34
SP - 311
EP - 330
JO - Journal of Corporate Finance
JF - Journal of Corporate Finance
ER -