The importance of taking enforcement action against cross-border insider trading and market manipulation

This chapter defines what is meant by market integrity and market fairness, analyses how and why they were adopted as key goals of securities regulation, how they differ from other goals and describes how the elimination of insider trading and market manipulation is necessary to realize these goals. It summarizes the literature which demonstrates the importance of securities regulators taking enforcement action against those who contravene insider trading and market manipulation laws but, at the same time, reflects upon the significant challenges involved in detecting, investigating and prosecuting these offences and how these difficulties increase if the offence is not confined within one jurisdiction.