Sir: Christopher Fildes is wrong to suggest (City and Suburban, 28 November) that insider traders steal from their employers. Those who are defrauded are the other individuals and institutions buying and selling shares in the open market without the benefit of what Americans call 'mat- erial non-public information'.
The existence of a false market harms all participants and, ultimately, the effective- ness of the capital raising process. That is why insider dealing is a matter for public concern. It is also a strong argument for the markets and the regulatory bodies to insist on early and full disclosure of mat- erial information by companies wishing to hve their securities listed. The less inside information exists, the less likely it is to be abused.
Managing Director, Alliance Capital Management International Inc, 43 Upper Grosvenor Street, London WI