5-5 Attempting To Deal And Dealing In Related Instruments

Attempting to deal

(1) Section 92(2) provides that an Insider shall not directly or indirectly "deal or attempt to deal in a Financial Instrument or Related Instrument" on the basis of Inside Information.
(2) In the Regulator's view, an "attempt to deal" covers circumstances where an Insider takes steps to enter into a transaction but the transaction is not executed. For example, if an Insider places an order with a broker or instructs another person (such as his investment adviser) to place an order with a broker, even though the order is not subsequently executed.

Related Instruments
(3) Section 92(2) prohibits an Insider from dealing or attempting to deal in relation to either the Financial Instrument (i.e. to which the Inside Information relates) or a Related Instrument. The definition of a "Related Instrument" is set out at Rule 1(9) of the RMC.

(4) For example, if an Insider has Inside Information relating to an Issuer, A, of a Financial Instrument, then a "Related Instrument" could include a Derivative relating to Financial Instruments of A or a Financial Instrument of another member of A's Group, if the price or value of that other Financial Instrument depends, in whole or in part, on the price or value of Financial Instruments of A.