Capital markets and insider trading: historiography and inventory of the legal framework (administrative, civil and sanctioning)

Abstract

This article sets forth, with conciseness and clarity of terminology, the history and legal regime (administrative, civil, and sanctioning) in Brazil of capital markets and commercial practices with the characteristic legal pattern of insider trading. It begins by contextualizing the conceptualization, purposes, and main features of investment markets. It proceeds by examining the justification for state intervention in this financial sector through regulatory structures for supervision and management of compliance and security of its activities and services. Subsequently, it explores the historical background and regulatory and operational framework of securities markets, the definition of the National Financial System, as well as the array of legislative instruments whose enactment culminated in its organization. At a critical juncture, it traces the chronology and the legal and regulatory framework currently in force in the country regarding insider trading. Finally, concluding remarks are presented.