Going Dutch: Catch‐all insider trading

Abstract

In the Netherlands new legislation has come into force in order to deal with insider trading. The legislator followed a new strategy. This time, instead of a provision with well‐defined criteria, a sort of catch‐all provision was created. The aim was to avoid difficulties in proving the offence. As a consequence, a new problem has arisen — usual and accepted behaviour on the stock markets, such as exercising, a green shoe option, is now within the ambit of the penalisation. The Dutch legislator has thus created some exceptions. These developments are analysed in the paper.

Citation

Groenhuijsen, M. and Kristen, F. (1999), "Going Dutch: Catch‐all insider trading", Journal of Financial Regulation and Compliance, Vol. 7 No. 4, pp. 331-338. https://doi.org/10.1108/eb025020