Insider trading: criminal intervention in white-collar crime in the securities market

Abstract

The Brazilian criminal law doctrine has been undergoing continuous transformation in order to keep pace with the evolving demands of society. In recent years, public concern has increasingly focused on the intensification of punitive measures, particularly in relation to violent crimes. However, equal—if not greater—attention must be directed toward so-called white-collar crimes, especially those committed within the financial market. Among these, insider trading stands out as a particularly harmful practice. Although it is already subject to administrative and civil sanctions, there remains an ongoing debate regarding the necessity of criminal enforcement. The imposition of criminal sanctions for insider trading is justified by the significant harm such conduct may inflict upon the financial system, potentially triggering severe economic crises with widespread social consequences. Strengthening criminal repression in this context is therefore essential not only to ensure investor protection and safeguard private assets, but also to preserve market integrity and promote the economic security of the State. In this regard, a robust criminal response to insider trading within the Brazilian securities market constitutes a necessary instrument for maintaining public trust and financial stability.