Market Abuse Regulation knowledge centre

Our Market Abuse Regulation knowledge centre provides you with access to the key materials relating to the EU’s revisions to its 2003 Market Abuse Directive (MAD), which have led to the adoption of a new Market Abuse Regulation (MAR) and associated recast Directive (CSMAD).

Overview

The Market Abuse Regulation (MAR) - and the associated Criminal Sanctions for Market Abuse Directive (CSMAD) - were introduced following a review of the EU’s 2003 Market Abuse Directive (MAD), conducted in light both of the financial crisis of 2008 and the subsequent LIBOR/EURIBOR scandals.

Given the deficiencies identified in MAD, (and, in particular, the gaps in the regulation of new markets, platforms, OTC trading, commodities and commodity derivatives), MAR is intended to amend the existing regime by, among other things:

  • extending the regime’s scope to cover a wider range of securities and derivatives as well as to certain related OTC traded instruments which can have an effect on the covered underlying market, and emission allowances, amongst other things
  • including inside information for spot commodity contracts within the definition of 'inside information' and extending the market manipulation offence to include, in some circumstances, spot commodities
  • creating the new offences of attempted market manipulation and manipulating a benchmark
  • regulating market soundings, by specifying steps to be taken before conducting a sounding and imposing detailed record-keeping requirements
  • extending the obligation to disclose inside information to the public to include issuers of financial instruments admitted to trading on an MTF or OTF
  • extending the suspicious transactions reporting requirement to cover suspicious orders
  • providing that persons discharging managerial responsibilities (PDMR) must notify the pledging or lending of financial instruments by or on their behalf as well as transactions undertaken by a portfolio manager or other person on behalf of the PDMR, and
  • introducing minimum rules for administrative measures, sanctions and fines.

The majority of MAR’s provisions will apply from 03 July 2016.

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This document (and any information accessed through links in this document) is provided for information purposes only and does not constitute legal advice. Professional legal advice should be obtained before taking or refraining from any action as a result of the contents of this document.