The term insider trading refers to the activity of individuals who, having become aware of particular top secret information, take advantage from the buying and selling of securities (generally shares). Insiders may become aware of such inside information, also called “price sensitive”, as they are company employees or in highly strategic positions. The information is not in the public domain precisely because of its content capable of influencing market trends if published.
Insider trading constitutes a crime in Italian and European law regulated in Legislative Decree no. 58 of 24 February 1998 (Consolidated Law on Financial Intermediation) and in the subsequent law no. 62 of 2005 which regulates the regulations passed from the EU.
The penalty for those who carry out insider trading consists of imprisonment from 3 to 8 years and financial fine ranging from €200,000 to €3,000,000.
The Consob is the body responsible for the control of the market abuse.
