Insider Trading in Bulgaria: A Legal Gray Area?

Bulgaria, a European Union (EU) member since 2007, is making strides towards adhering to international financial regulations. However, when it comes to insider trading, the country’s legal landscape remains ambiguous.

Bulgaria’s Criminal Legislation Against Insider Trading

• Bulgaria has criminal legislation against insider trading
• Prohibits insider trading when it results in financial damage to specific entities or individuals
• Fines or imprisonment for up to five years for those found guilty

Ambiguity and Lack of Clear Definition

• Lacks a clear definition and comprehensive regulatory framework
• Potential for selective law enforcement and insider trading activities

Recent Developments

• Introduction of a draft bill in 2015 aimed at boosting transparency and regulating insider trading
• Limited progress towards integrating MAR (Second EU Market Abuse Regulation) into Bulgarian regulatory framework

Implications for Investors and Businesses

• Insider trading remains a concern for investors and businesses operating in Bulgaria
• Lack of clear legislation and weak enforcement increases the risk of insider trading activities
• Potential distortion of the market and negative impact on investors’ confidence

Monitoring Developments

• Bulgaria’s ongoing efforts to align its regulatory framework with international best practices
• Implementation of comprehensive insider trading regulations could deter insider trading activities
• Creating a more level playing field for all market participants