Internal Dealing Preventive Measures: How to Face it In the Day-to-Day Companies Activity?

Abstract

The work intends to give a brief insight to the most common difficulties public listed companies and in-house counsel face in trying to implement the insiders' list prevention measure in connection with the market abuse matter. Market abuse is a concept which includes both market manipulation and insider dealing. The matter is relevant not only to issuers of financial instruments but also to investors. Indeed, market participants' behaviour is conditioned by the information in their possession and, as a consequence, the financial market is the place where the availability and exchange of information influences the exchange of financial instruments. A prerequisite for an efficient financial market is the market transparency. Prompt and full disclosure of information to the public enhances markets integrity, by guarantying that economic operators are placed on an equal footing and that relevant information reflects immediately on financial instruments' prices, whereas selective disclosure causes market distortion and undermines investors' confidence.