A professional trader was given some price-sensitive, unpublished information in relation to a major grain...

Insider dealing arises when a person who possesses inside information uses it by acquiring or disposing of financial instruments, or by attempting to do so, or by recommending or inducing another person to deal. Commodity derivatives such as exchange-traded futures can fall within the scope of market abuse regimes when traded on relevant venues, and the definition of inside information includes precise, non-public information likely to have a significant price effect. In this scenario the trader receives unpublished, price-sensitive information about a major grain supplier and then trades grain futures as a direct result. That is the hallmark of using inside information to deal. Importantly, the offence is based on the act of dealing while in possession of inside information, not on whether a profit is ultimately made. The holding period is also irrelevant; dealing can occur even if the contract is later held to expiry. The incorrect options contain common traps: treating commodity futures as outside scope, requiring profit, or implying that expiry removes the issue. The correct conclusion is that insider trading has been committed regardless of the eventual outcome.