Proposal for a leniency policy framework to fight insider trading in the concentrated securities market

Abstract

Built on the foundation of Game Theory and first implemented in 1978 by the United States Department of Justice Antitrust Division, leniency policies have proven effective in combating anti-competitive agreements globally. Meanwhile, developed countries are almost powerless in finding effective solutions to combat insider trading hidden behind the trading screens of the concentrated securities market. Would  adding a leniency policy framework to securities law help fight this behaviour? Based on a theoretical analysis of leniency policies and a comparison of behavioural structures, the research findings of this article demonstrate the feasibility of proposing the development and application of a legal framework regarding leniency policies in securities law to fight against insider trading transactions in the concentrated Vietnamese securities market.