Regulating Carbon Assets Insider Trading: A US-EU Comparison to Protect Carbon Market Integrity

Abstract

Abstract Given that policy information significantly affects the supply and demand of carbon assets, that the major factor impacting carbon asset market price is the size of supply and demand of the assets, and that, unlike commodities, outsiders are not allowed to access policy information, carbon asset insider trading can be implemented majorly as a form of corruption between authorities and entities. In this context, this paper discusses the regulatory vacuum of the US legal system relevant to carbon asset trading. The basis of the argument is in the comparison of legal system between the EU and the US.