Insider trading is one of the most pressing issues of the capital market. The use of inside information is disloyal and exploits a scenario of information asymmetry. To address this important subject, Rio de Janeiro Law School (Direito Rio) partnered with Saraiva Jur to launch the book O insider trading no Direito brasileiro [Insider Trading in Brazilian Law], written by Francisco Antunes Maciel Müssnich.

Based on the premise that “insiders” with exclusive access to relevant information can profit at the expense of others who ignore such information, and that the effort against insider trading is an unequivocal measure to raise moral standards in the capital market, the author lays out the basic elements that characterize such illegal activity, from a corporate law standpoint: existence of privileged information not disclosed to the market; access to such privileged information; and the use of such information by “insiders” with the intent to profit before such information is released to the market. Such analysis is carried out based on the legislation and legal theory of Brazil and the U.S.

The author also weaves a critical narrative of actual cases that have been already ruled upon by the Brazilian Securities and Exchange Commission (CVM), illustrating not only the impacts of insider trading over a specific transaction and the people involved, but also the toll it takes on the market itself, which relies primarily on the confidence of investors.

The book will be launched on May 11, at 5 p.m., at the Barbosa Müssnich Aragão (BMA) office in Rio de Janeiro (Av. Almirante Barroso, 52. 13th floor), and in Sao Paulo, on May 23, also at BMA’s office (Av. Presidente Juscelino Kubitschek, 1.455, 1th floor).

Go to the website for more information on the book, in Portuguese.