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CMC 6-5 Attempting to Deal and Dealing in Related Investments

Attempting to deal

1. Article 58 provides that an Insider shall not directly or indirectly "deal or attempt to deal in an Investment, or in a RelatedInvestment" on the basis of Inside Information.
2. In the DFSA's view, an "attempt to deal" covers circumstances where an Insider takes steps to enter into a transaction but the transaction is not executed. For example, if an Insider places an order with a broker or instructs another person (such as his investment adviser) to place an order with a broker, even though the order is not subsequently executed.

Related investments

3. Article 58 prohibits an Insider from dealing or attempting to deal in relation to either the Investment (i.e. to which the Inside Information relates) or a related investment. The definition of a "related investment" is set out at CMC chapter 1 paragraph 14.

For example, if an Insider has Inside Information relating to an Issuer, A, of an Investment, then a "related investment" could include a Derivative relating to Investments of A or an Investment of another member of A's Group, if the price or value of that other Investment depends, in whole or in part, on the price or value of Investments of A.
Derived from GM9/2014 (Made 1st January 2015). [VER1/01-15]