Abstract
For the first time, market regulators in the United States are pursuing an individual for “shadow trading,” a form of insider trading relying upon comparator companies. Despite the Securities and Exchange Commission's status as a regulatory body, the agency has foregone the adoption of a formal rule against shadow trading. It is instead attempting to enlarge the scope of the common law's present definition of insider trading to a host of dangerous consequences. Rather than leave an unsuspecting public to guess whether conduct is prohibited, the agency should adopt a formal rule. This note examines the practicality of doing so and offers some suggestions about how such a rule should look.
Recommended Citation
Randy L. Koonce,
Into the Shadows: A Rule for the Prevention of Shadow Trading,
47
S. Ill. U. L.J.
191
(2022).
Available at:
https://opensiuc.lib.siu.edu/siulj/vol47/iss1/5