17 CFR Parts 240, 243, and 249
Release Nos. 33-7881, 34-43154, IC-24599, File No. S7-31-99
Selective Disclosure and Insider Trading
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
SUMMARY: The Securities and Exchange Commission is adopting new rules to address three issues: the selective disclosure by issuers of
material nonpublic information; when insider trading liability arises in connection with a trader's "use" or "knowing possession" of material nonpublic information; and when the breach of
a family or other non-business relationship may give rise to liability under the misappropriation theory of insider trading. The rules are designed to promote the full and fair disclosure of information by
issuers, and to clarify and enhance existing prohibitions against insider trading.
EFFECTIVE DATE: The new rules and amendments will take effect October 23, 2000.
FOR FURTHER INFORMATION CONTACT:
Richard A. Levine, Sharon Zamore, or Jacob Lesser, Office of the General Counsel at (202) 942-0890; Amy Starr, Office of Chief Counsel, Division of Corporation Finance at (202) 942-2900.