SEC Announces New Insider Trading Rules for Foreign Companies

The US Securities and Exchange Commission announced new insider trade rules on Friday for executives in non-US companies who buy or sell stock in their firms.

The SEC’s rules require executives and officers to quickly reveal when they scoop up or dump shares, a disclosure meant to deter people from using non-public information to cash in on well-timed trades. The requirements, which will take effect March 18, will be mostly in line with those faced by executives in American companies that require reporting within two business days.

The regulations apply to what the SEC labels foreign private issuers, companies based ...