Insider trading in financial markets

Funding: 2015: $120,000
2016: $118,000
2017: $112,000

Project Member(s): Putnins, T.

Funding or Partner Organisation: Australian Research Council (ARC DECRA Scheme)

Start year: 2015

Summary: Insider trading destroys confidence in financial markets and undermines their fairness and efficiency. Substantial amounts of taxpayer money are spent each year in combatting insider trading, and yet cases of insider trading remain abundant. This project will advance our understanding of insider trading ¿ its prevalence, its social costs, its characteristics and determinants, and how it responds to different penalties. This collection of insights will allow for more efficient use of regulatory resources ¿ better rules, more accurate detection methods, and increased deterrence ¿ and will benefit society through fairer and more efficient markets.

Publications:

Patel, V, Putniņš, TJ, Michayluk, D & Foley, S 1970, 'Price discovery in stock and options markets', Journal of Financial Markets, 4th Behavioural Finance and Capital Markets Conference, Elsevier BV, Adelaide, Australia, pp. 100524-100524.
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Foley, S, Karlsen, JR & Putniņš, TJ 2018, 'Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed Through Cryptocurrencies?', Review of Financial Studies, vol. 32, no. 5, pp. 1798-1853.
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Malceniece, L, Malcenieks, K & Putniņš, TJ 2018, 'High Frequency Trading and Co-Movement in Financial Markets', Journal of Financial Economics, vol. 134, no. 2, pp. 381-399.
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Foley, S & Putniņš, TJ 2016, 'Should We Be Afraid of the Dark? Dark Trading and Market Quality', Journal of Financial Economics, vol. 122, no. 3, pp. 456-481.
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Keywords: Insider trading, market microstructure, financial markets

FOR Codes: Finance Services, Financial Econometrics, Law Reform, Finance, Financial Economics, Crime Prevention, Financial econometrics

Acknowledgement of Country

UTS acknowledges the Gadigal people of the Eora Nation, the Boorooberongal people of the Dharug Nation, the Bidiagal people and the Gamaygal people, upon whose ancestral lands our university stands. We would also like to pay respect to the Elders both past and present, acknowledging them as the traditional custodians of knowledge for these lands.