  Before a person can be prosecuted and convicted for insider trading, he must
first execute the overt act of trading. If no sale of security is consummated,
no crime is also consummated. However, through a complex and insidious
combination of various financial instruments, one can capture the same amount
of gains from insider trading without undertaking an actual trade. Since the
crime of insider trading involves buying or selling a security, a more
sophisticated insider can circumvent the language of the Securities Regulation
Code by replicating the economic equivalent of a sale without consummating a
sale as defined by law.
