US Insider Trading Regulation

East Asian International Economic Law and Policy (EAIEL) Programme

Sponsored by Theme-based Research Scheme (TRS) Project on Financial Technology, Stability, and Inclusion

U.S. Insider Trading Regulation: The Need for Remediation

13 December 2024

This presentation by Professor Marc I. Steinberg will focus on the unacceptable state of insider trading in the United States. Unlike the insider trading frameworks in the European Union and other developed markets which are premised on the access or possession of information approach, U.S. insider trading law (with certain exceptions) is based on concepts of fiduciary duty. The consequence is the application of vague standards impacting similarly situated persons in a disparate and unfair manner. In addition, with the U.S. Securities and Exchange Commission (SEC) stretching its regulatory authority seemingly to the ultimate extent with respect to insider trading enforcement, overreach and uncertainty prevail. This unacceptable situation should be remedied by the enactment of a comprehensive insider trading law premised on the access approach as well as the adoption of several other measures that would enhance the integrity of the U.S. disclosure and insider trading regimen. In his presentation, Professor Steinberg will discuss a number of the recommendations he makes in his recent Oxford University Press book Rethinking Securities Law which was awarded Winner best law book of 2021 in the United States by American Book Fest.

About the Speaker
Marc I. Steinberg is the Rupert and Lillian Radford Chair in Law and Professor of Law at the Southern Methodist University (SMU) Dedman School of Law. He has served as a Professor, Fellow, or has lectured at several other prominent universities, including the University of Cambridge, Oxford University, King’s College-University of London, Heidelberg University, Stockholm University, University of Tel Aviv, Moscow State University, University of Sydney, Auckland University, University of Hong Kong, University of Tokyo, UCLA, and University of Pennsylvania. Professor Steinberg was an attorney for the U.S. Securities and Exchange Commission (SEC) in the SEC’s Division of Enforcement and its Office of General Counsel. He also has been retained as an expert witness in several high-profile cases, including Enron, Martha Stewart, Mark Cuban, and the National Prescription Opioid Litigation. Professor Steinberg is the most prolific author of securities law scholarship in the United States, having authored approximately 150 law review articles as well as approximately 50 books. One of his recent books, Rethinking Securities Law (Oxford University Press 2021), was awarded Winner best law book in the United States for 2021 by American Book Fest. He is editor-in-chief of The International Lawyer and The Securities Regulation Law Journal. Professor Steinberg is a member of The American Law Institute.

Chair: Professor Douglas Arner, Kerry Holdings Professor in Law, Faculty of Law, The University of Hong Kong

Enquiries: Flora Leung at aiiflhku@hku.hk