Kenney Rule

The Kenney Rule is a regulation that was put in place by the U.S. Securities and Exchange Commission (SEC) in 1975. The rule is designed to prevent insider trading by requiring that all securities transactions by directors, officers, and 10% shareholders of a publicly traded company be reported to the SEC within two business days.

The rule is named after former SEC Chairman William J. Casey, who was instrumental in its passage. The Kenney Rule is one of the most important regulations governing insider trading, and it has helped to deter and prosecute insider trading cases.

The Kenney Rule is based on the principle that insiders have access to material non-public information about their companies that could give them an unfair advantage in the market. By requiring insiders to report their trades, the rule helps to ensure that all investors have access to the same information at the same time.

The Kenney Rule has been effective in deterring insider trading. In the years since its passage, the SEC has brought a number of successful insider trading cases under the rule. The rule has also helped to increase public confidence in the fairness of the securities markets.

However, the Kenney Rule has also been criticized by some as being too narrow. Critics argue that the rule does not cover all types of insider trading, and that it is too easy for insiders to circumvent the rule.

Despite these criticisms, the Kenney Rule remains an important part of the regulatory framework governing insider trading. The rule has helped to deter and prosecute insider trading cases, and it has helped to increase public confidence in the fairness of the securities markets.

In addition to the Kenney Rule, there are a number of other regulations that govern insider trading. These regulations include:

* The Securities Exchange Act of 1934
* The Insider Trading Sanctions Act of 1984
* The Sarbanes-Oxley Act of 2002

These regulations are designed to protect investors from insider trading and to ensure that the securities markets are fair and transparent.