The Global Crackdown on Insider Trading: A Silver Lining to the Great Reccession

The wake of the Great Recession marked a period of increased enforcement of insider trading violations by nation-states and self-regulatory organizations overseeing stock markets around the world. Before discussing the heightened global enforcement of insider trading, this Note explains the development of insider trading regulation by focusing on U.S., EU, and China law. This Note argues that the heightened global enforcement of insider trading violations in the wake of the Great Recession is a sign of a shared perception by market regulators around the world that there is a need to restore market confidence. Strong enforcement of insider trading regulations is one way market regulators can restore confidence in their marketplaces by showing all investors that they may indeed sit on equal footing. This facilitation of stock market investment in turn promotes capital market development and enables economic growth