Skip to content
Employee Conflicts of Interest Insider Trading MNPI & Enterprise Conflicts News

Insider Trading compares employee, firm and client transactions against market events to detect trades based upon Material Non Public Information (MNPI)

StarCompliance announced today the release of its Insider Trading compliance software to help firms comply with rules around the use of MNPI when conducting personal, firm and client trades. The new module tracks transactions against stock price or volume fluctuations and links to news stories that may have influenced these movements.

StarCompliance developed Insider Trading to prevent firm and employee violation of regulatory guidelines by illegally using MNPI to profit from security transactions. The software is configured to inform compliance of all employee, firm and client transaction prior to a significant market event and automatically attach relevant news stories to the event, allowing compliance to identify suspicious trading activity. Insider Trading retains a full audit trail including details of the original transaction and all subsequent modifications and communications relating to the transaction.

“Regulators are cracking down on insider trading at the firm and employee level,” said Matt McGill, Vice President of Sales, StarCompliance. “We worked together with our clients and prospective clients to ensure we developed a software module that mitigates risk in this area.”

Insider Trading is configurable to meet any regulatory compliance requirements and can be configured with different rules for different groups within an organization. The new software module opens cases when potential violations occur and compliance can work these cases through to resolution.

“Insider Trading saves compliance personnel from labor-intensive, manual tracking and analysis of firm and employee trades and gives our clients peace of mind that their firms are fully compliant with insider trading rules,”said McGill.