![]() ![]() These will serve as a basis to offer several recommendations which will aid Belgian policy makers to better design and implement regulation in the future. Additionally, academic and regulatory literature on the topic has been reviewed in order to identify loopholes in the fields of technology, financial innovation, political connections, discrepancies between private and public companies 1 Alumni at the Antwerp Management School. Afterwards, an analysis of the differences between the EU and the US will be conducted in order to assess the situation on a supranational level within the EU and identify any gaps that may exist. This will be done by analyzing the historical developments with regards insider dealing regulation leading up to the current situation and influence by the supranational law maker, which is the European Union. ![]() The first step is to look at the Belgian market. This analysis will then serve as a basis in giving the final recommendations to Belgian policy makers on what they could implement within their own regulatory structure. This will be done in order to understand what is being done on every scale, and so, aid to give a better understanding of what the differences are amongst all these levels and what could be further developed. (AFM, 2017) This paper will look at the insider trading regulations which are being implemented on three different levels: the Belgian market, the European market and the US market. The essential characteristic of insider trading consists of an unfair advantage being obtained from inside information to the detriment of third parties who are unaware of such information and, consequently, the undermining of the integrity of financial markets and investor' confidence. Insider trading is the sale or purchase of securities by corporate insiders, using privileged, price sensitive and material non-public information to their advantage to generate abnormal returns (Doffou, 2007). This concludes that the FCA is efficient in regulating insider trading. Insignificant abnormal returns are found in the run‐up to the first announcement of mergers in the 2015–2019 period. The results from this study determine that abnormal returns are reduced after the implementation of the Financial Services Act 2012 prices are also found to be noisier in the period before the 2012 Act. Practically, stock price data on the London Stock Exchange from 2008 to 2012 and from 2015 to 2019 are investigated. Samples of abnormal returns are examined on periods, under regulation either by the FSA or by the FCA. Our study examines the effectiveness of the FCA in its duty of regulating insider trading through utilising the event study methodology to assess abnormal returns in the run‐up to the first announcement of mergers. An area requiring an improvement in regulation was insider trading. Thus, the Financial Conduct Authority (FCA) succeeded the Financial Services Authority (FSA). The Financial Services Act 2012 was developed as a result in order to give more control and authority to the regulators of financial markets. This concludes that the FCA is efficient in regulating insider trading.Īfter the 2007/2008 financial crisis, the UK government decided that a change in regulation was required to amend the poor control of financial markets. Insignificant abnormal returns are found in the run-up to the first announcement of mergers in the 2015-2019 period. Practically, stock price data on the London Stock Exchange from 19 is investigated. Our study examines the effectiveness of the FCA in its duty of regulating insider trading through utilising the event study methodology to assess abnormal returns in the run-up to the first announcement of mergers. After the 2007/2008 financial crisis, the UK government decided that a change in regulation was required to amend the poor control of financial markets.
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