The transformation of markets driving cross-border insider trading and market manipulation

This chapter surveys the changes that have taken place in securities markets and in relation to securities market trading over the last two decades and the risks to market integrity inherent in these changes. It considers why these changes occurred and how they may have impacted upon opportunities to engage in insider trading and market manipulation. It also considers the challenges these changes have caused for securities regulators in terms of the detection, investigation and prosecution of market manipulation and insider trading which crosses borders. Finally, this chapter examines the regulatory responses of specific governments to the changes and how these new laws may deter insider trading and market manipulation as well as assist regulators in their efforts to detect, investigate and prosecute these offences.