Australian Exchange Security - Term Paper Example

The paper "Australian Exchange Security" is a wonderful example of a term paper on macro and microeconomics. This paper's purpose is to examine, consider, compare and contrast, and critically analyze laws governing insider trading within the context of the Australian exchange security (ASX) and Australian Securities and investment commission (ASIC) as a stock market regulators and exchanges in Australia. Additionally, it assesses the capital market authority (CMA) role as a stock market regulator in Saudi Arabia. A thorough examination of the powers and functions, legislative tools, investigative and legal resources assessment extends to the associated civil and criminal liabilities of offending persons to counteract insider-trading activity. Based on the results of such examination the paper set out proposals for reform within the Australian and Saudi Arabian models.

The Introduction

The laws governing insider trading generally apply to any individual in contact with the materiality of certain price-sensitive information that has been withheld or unknown to the counterparty or the public. For a long period of time, Insider trading regulation has been viewed as complicated and a rather demanding component of company law. Judges and academics have regarded the law governing Australian insider trading as overly complex, legalistic, and unclear being stated in couched language that is difficult to be understood and to be put in practice. In modern times scholars and researchers have popularly focused on the study of laws governing insider trading – in exacting on certain issues. For instance, the major issues have been on whether or not the legitimacy of insider trading should be acknowledged and means of tackling the apparent challenges of ineffective prosecution and conviction of insider traders. Unfortunately, Australia has witnessed relatively few insider trading prosecutions, and as a result, comparably reduced cases have been decided in this area of the law. Hence the justification for the commonly adopted assumption that “in many more journal articles are recorded the expected actions concerning [insider trading] compared to the actual state of affairs for the cases.