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Securities regulation governs the permitted conduct of brokers and other market participants on stock exchanges. At a broad level, most countries have a general rule that prohibits market misconduct in the form of manipulating share prices. However, what constitutes market manipulation is not always perfectly clear, and, as such, different countries have adopted more specific rules at different points in time. Rule specificity is not a trivial issue since more specific rules may signal to market participants that securities laws enumerate surveillance and enforcement of those prohibitive types of trading (Cumming, Johan, and Li 2011). A blanket rule or a general statement against market misconduct may not have the same effect.

The following explains the different types of trading rules that may be found in different countries around the world. Additionally, some evidence is presented on rule specificity in different countries.

The three main categories of trading rules are rules designed to: (1) mitigate insider trading, (2) lessen market manipulation, and (3) curtail broker-agent conflicts. Each is described, followed by an explanation of how the rules pertain to broker-dealer conduct.