Insider trading
Early identification of communications suggesting securities trades based on material non-public information — insider trading — or the leakage of such information.
Linguistic warning signals
- references to financial results before publication
- suggestions to buy or sell before a corporate announcement
- leakage of M&A or results information to outsiders
- discussions about undisclosed contract information
Why it matters
Insider trading usually originates with people who have legitimate access to the information — the finance team before a close, the external advisor on a merger — not an external attacker. That keeps the circle of suspects narrow and gives internal communications especially high evidentiary value: a "buy before the announcement" suggestion sent over corporate chat can be the central evidence in a case, even if the trade was never actually executed.
Relevant regulatory framework
- Chile — Law 18.045 Art. 165, CMF NCG 380
- Brazil — Lei 6.385/1976 Art. 27-D, CVM
- USA — SEA § 10(b), Rule 10b-5, Regulation FD
- EU — MAR Art. 8-10
Recommended action
- 1Activate the insider list immediately when the signal is identified.
- 2Restrict access to non-public information to those with a legitimate need to know.
- 3Check whether the person involved had pending or scheduled securities trades.
- 4Document the chain of custody of the information from its creation to publication.
Is your organization exposed?
vario identifies these signals automatically in corporate emails, Slack, Teams and WhatsApp.
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