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Inside information
Practical Law UK Glossary 8-200-9269 (Approx. 4 pages)
Glossary
Inside information
This term has a different meaning depending on the context in which it is used:
- For the purposes of the criminal insider dealing regime under the Criminal Justice Act 1993 (CJA 1993), information which:
- relates to particular securities or to a particular issuer of securities and not to securities or issuers of securities generally;
- is specific or precise;
- has not been made public; and
- if it were made public would be likely to have a significant effect on the price of any securities.
(Section 56, CJA 1993.)
- For the purposes of the UK Market Abuse Regulation (UK MAR), information of a precise nature, which:
- has not been made public;
- relates, directly or indirectly, to one or more issuers or to one or more financial instruments; and
- if it were made public, would be likely to have a significant effect on the prices of those financial instruments or on the price of related derivative financial instruments (that is, it is information that a reasonable investor would be likely to use as part of the basis of their investment decisions).
(Article 7(1)(a) and 7(4), UK MAR.)
There are also different definitions of inside information in UK MAR in relation to commodity derivatives, emission allowances and auctioned products based thereon and for persons charged with the execution of orders concerning financial instruments (see Article 7(1)(b) to 7(1)(d), UK MAR).
For more information, see Practice note, UK MAR: inside information: disclosure and control and Checklist: UK MAR: is it inside information?.