The Extent and Intensity of Insider Trading Enforcement - An International Comparison

This article presents the results of a detailed comparative empirical study of sanctions imposed for insider trading in Australia, Canada (Ontario), Hong Kong, Singapore, the United Kingdom, and the United States. The comparative study is based on a dataset of a significant size, scope and comprehensiveness, encompassing nearly 700 individuals and companies, as well as approximately 1400 sanctions imposed for the contravention of insider trading provisions during the seven year period from 1 January 2009 to 31 December 2015. The study compares the type, magnitude and frequency of sanctions imposed by statutory bodies and the courts for insider trading and provides important insights into the enforcement tools commonly used by securities regulators to enforce insider trading laws. One significant finding is that even in jurisdictions with similar insider trading laws, very different sanctions are used to enforce these laws. The article also sets out an empirical methodology for assessing the severity of sanctions imposed for insider trading in each of the jurisdictions, providing an example for future empirical analysis