Political Intelligence: Financial Market Value of Government Information Hinges on Materiality and Timing

Citation
Government Accountability Office, Political Intelligence: Financial Market Value of Government Information Hinges on Materiality and Timing (GAO-13-389) (Apr. 4, 2013) (full-text).

Overview
The Stop Trading on Congressional Knowledge Act of 2012 (STOCK) specifically defines political intelligence as information that is "derived by a person from direct communications with an executive branch employee, a Member of Congress, or an employee of Congress; and provided in exchange for financial compensation to a client who intends, and who is known to intend, to use the information to inform investment decisions."

While no other laws or ethics rules specifically govern political intelligence activities, securities laws and executive and legislative branch ethics rules and guidance do provide guidelines for government officials to protect material non-public information (e.g., information that has not been disseminated to the general public or is not authorized to be made public). For example, insider trading laws apply to both the executive and legislative branches and prohibit the disclosure of material non-public information derived from employees' official positions for personal benefit.