A must be defined as a financial product according to Corporations Act 2001 “future” According to s761D(1)(a) under s1042A Division 3 Financial Product. of “Meaning it states that Derivative” party to the arrangement must, or may be required to “a provide at some future time consideration of a particular kind or kinds to someone” and that s761D(1)(c) value of arrangement, is ultimately determined, derived “the from or varies by reference to the value or amount of something else including an which therefore implies that futures contracts brought on the SFE are asset” derivative products according to s761D(1) and therefore they are also within the definition of s1042A which includes as Division 3 financial products. “derivatives” Can Insider Trading apply to SFE? It has been established that person” has purchased products that are defined within “a then it must be established if can s1042A Division 3 Financial Products, s1042B apply to this derivative purchase. Corporation Act 2001 s1042B (a) applies since it “applies to acts or omissions…to Division 3 financial products (regardless of Although person” has purchased the shares where…issuer carries on a business)”. “a on the Sydney Futures Exchange, s1042B (a) implies that the purchase place is irrelevant in determining insider trading provisions. Since in the previous question it was established that person whom is working “a information satisfies the definition of because within a company” inside information it was and it would have had generally available” material effect on the price “not “a of the it must be determined whether or not or value” Division 3 Financial Product – B has breached insider trading provisions by purchasing a parcel of futures as a result of this inside information. FROM HERE GOTO CHINESE WALL EXAMPLE Defences to Insider Trading - Exceptions to s1043A
A “future” must be defined as a financial product according to Corporations Act 2001 s1042A Division 3 Financial Product. According to s761D(1)(a) under “Meaning of Derivative” it states that “a party to the arrangement must, or may be required to provide at some future time consideration of a particular kind or kinds to someone” and that s761D(1)(c) “the value of arrangement, is ultimately determined, derived from or varies by reference to the value or amount of something else including an asset” which therefore implies that futures contracts brought on the SFE are derivative products according to s761D(1) and therefore they are also within the definition of s1042A which includes “derivatives” as Division 3 financial products. Can Insider Trading apply to SFE? It has been established that “a person” has purchased products that are defined within s1042A Division 3 Financial Products, then it must be established if s1042B can apply to this derivative purchase. Corporation Act 2001 s1042B (a) applies since it “applies to acts or omissions…to Division 3 financial products (regardless of where…issuer carries on a business)”. Although “a person” has purchased the shares on the Sydney Futures Exchange, s1042B (a) implies that the purchase place is irrelevant in determining insider trading provisions. Since in the previous question it was established that “a person whom is working within a company” information satisfies the definition of inside information because it was “not generally available” and it would have had “a material effect on the price or value” of the Division 3 Financial Product – it must be determined whether or not B has breached insider trading provisions by purchasing a parcel of futures as a result of this inside information. FROM HERE GOTO CHINESE WALL EXAMPLE Defences to Insider Trading - Exceptions to s1043A
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