What is required when dealing with insider information or non-public material information?

• A. Trade on non-public information.
• B. Disclose non-public information to the public.
• C. Trade on non-public information after written consent.
• D. Do not trade on or disclose non-public information; comply with market conduct and disclosure rules.

Answer: (D)

Insider information or non-public material information must be treated with strict confidentiality and is not for trading or sharing. The rule aims to preserve fair markets and prevent anyone from gaining an unfair advantage by acting on information that isn’t yet available to the public. Therefore, you should not trade on that information, and you should not disclose it to others. Instead, you follow market conduct and disclosure rules, which guide how information should be handled and when it may be disclosed (if at all) to ensure a level playing field.

Trading on non-public information is not allowed because it gives the trader an unfair edge and undermines market integrity. Disclosing such information to the public would also breach duty of confidentiality and could amount to tipping, which is similarly prohibited. Even with written consent, trading on non-public information isn’t a valid defense under market conduct rules; the obligations to refrain from using or sharing inside information override any supposed consent.