The SEC adopted Rule 10b5-1 to define what it means to trade securities on the basis of material nonpublic information i.e. insider trading. Rule 10b5-1 also specifies exclusive affirmative defenses for one charged with insider trading, the essence of which are that there is no violation if the trade was made pursuant to a pre-arranged trading plan, even if the seller or buyer later became aware of the information before the trade was make. However, some news report that the insiders use pre-arranged trading plans as safe harbor to cover their illegal insider trading, therefore the insiders beat the market and make great profits from these trading. In this article, it finds out the origin, application, validity, and potential misuse of pre-arranged trading plans under U.S. securities regulations. Then it introduces how EU laws deal with this problem. Based on that, it evaluates the necessary of transplanting pre-arranged trading plan as an affirmative defense to insider trading into Taiwan legal regime.