The Finance Ministry is preparing a draft law on combating insider trading on the securities market, which, in particular, will give the Bank of Russia the right under the court’s decision to listen to phone conversations.

As reported TASS, told reporters in Moscow, Deputy Finance Minister Alexei Moiseev, speaking at the Financial University under the government of the Russian Federation.

“Being prepared rather draconian measures similar to those that made the regulators in the US and UK, he said. – This is the first bill on insider dealing, which is just a hot iron will be punished for insider trading”.

According to Moses, the stock market can be a very effective but cases of misuse of information, when the management knows that tomorrow will be declared a higher dividend than expected by the market and begins to buy up shares of the company should be publicly suppressed.

Recall that the insider is considered official information about the company, the disclosure of which could have a significant impact on the securities market. Examples of insider information may serve as the company’s annual revenues prior to its formal publication, the upcoming merger or acquisition, etc.

In many countries, the law assumes that the insider information about the companies has the top leadership and the circle of persons who engaged in operational management of the organization. In practice, often even ordinary employees of large corporations give a subscription that you do not have the right to make transactions with securities of his employer on the basis of which they became aware of important information.

In Russia in 2010, the law “On counteracting improper use of insider information and market manipulation and on amendments to certain legislative acts of the Russian Federation”. It provides the opportunity for those who suffered harm as a result of insider information, to claim damages, and provides the right of governing bodies to revoke the license of the professional participants of the securities market for such violations.

The use of insider information the law recognizes an administrative offence.

Under the insider information it refers to “precise and concrete information which was not distributed or provided (including information constituting commercial, official, Bank secrecy, secret communications (in terms of information about postal money transfers) and other legally protected secrets), distribution or provision of which could have a significant impact on the prices of financial instruments, foreign currency and (or) goods (including information concerning one or more issuers of securities (hereinafter – the Issuer), one or more management companies of investment funds, mutual funds and private pension funds)”.



CBR will have the right to listen to telephone conversations to combat insider trading 26.10.2016

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