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Publishers Abstract:
The ban on insider trading constitutes an essential component of capital market regulation around the world. In order to ensure investors' confidence in the integrity of financial markets it is crucial that those who possess secret information that is relevant for the pricing of certain securities do not exploit their informational advantage but trade only after the information has been publicly released and is thus available to all investors. At the core of the whole prohibition lies the exact determination of what kind of information should trigger these far-reaching legal consequences. In European capital market law this question is governed by Article 1(1) of the Market Abuse Directive, which defines the notion of "inside information". Against this background, the Court's judgment in the Geltl case is very important, as it helps to clarify a central element of the concept of inside information, the definition of "information of a precise nature" according to Article 1(1) of the Market Abuse Directive and Article 1(1) of the Implementation Directive.
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