Page "Insider trading" Paragraph 49

In the UK, the relevant laws are the Criminal Justice Act 1993 Part V Schedule 1 and the Financial Services and Markets Act 2000, which defines an offence of Market Abuse.

It is also illegal to fail to trade based on inside information ( whereas without the inside information the trade would have taken place ).

The principle is that it is illegal to trade on the basis of market-sensitive information that is not generally known.

No relationship to the issuer of the security is required ; all that is required is that the guilty party traded ( or caused trading ) whilst having inside information.