Marco Ventoruzzo is a comparative business law scholar with a joint appointment with the Pennsylvania State University, Dickinson School of Law, and Bocconi University.
The European Market Abuse Regulation (No. 596/2014), which rewrites many rules governing insider trading and market manipulation, will come into full force in June 2016 in the Member States of the Union. With respect to insider trading, the underlying approach remains based on the equal access to information theory and the idea that—absent specific exemptions—everyone in possession of a price-sensitive, inside information, cannot trade without running afoul of the law, unless the information is properly disclosed when this is allowed. In this perspective, Europe can be contrasted with the U.S., where the fiduciary duty theory of insider trading has created a complex web of doctrines and rules, and caused significant uncertainty (just consider the recent certiorari granted by the Supreme Court in light of a split among Circuit Courts on the scope of tippee liability (discussed on the Forum here)). For an overview of the different approaches on the two sides of the Atlantic, also in an historical perspective, see here.