Legalizing Insider Trading in Private Markets

The recent regulatory changes in the UK have legalized insider trading but only within private markets under specific circumstances through a system known as PISCES. This new framework allows for trading shares of private companies with less transparency compared to public markets, aiming to facilitate the trading of private market stocks. The decision to permit insider trading in these markets stems from the heavily regulated public market rules, which do not apply in the same way to private entities. The hope is to encourage investment and liquidity in the private sector while balancing the risks associated with insider knowledge.