ILLEGAL USE OF INSIDER INFORMATION AS AN ENCROACHMENT ON THE FINANCIAL SECURITY OF THE ENTERPRISE

Abstract

The constant development of information technologies and the growing role of human potential at the present stage create new internal threats to the information security of enterprises in the field of their economic activities. For a long period of time, insider information as a special type of restricted information in our country has been the subject of numerous discussions in terms of foreign experience of protection and the possibilities of implementing this institution in Ukraine. Illegal use of insider information involves a violation of the prohibition on the use of insider information, which is always aimed at illegal actions with financial instruments. Illegal insider trading may cause damage to both individual issuing entities and other securities market participants. Having an advantage over other stock market participants, an insider manipulates their economically significant behavior, forcing them to perform certain stock exchange transactions that may subsequently lead to significant losses. The unstable financial condition of any stock market entity or financial group is an indicator of a low level of security of the market's shares and, as a result, financial security in general. Insiders are considered to violate the principles of fairness by their actions, which are detrimental to a free market economy. The article examines and analyzes the issues of formation, interpretation and improvement of legislation on criminal liability for insider abuse. The author examined the ways of illegal use of insider information and substantiated that violation of the prohibition on the use of insider information is always aimed at illegal actions with financial instruments.