The following Financial Services guidance note provides comprehensive and up to date legal information covering:
The Market Abuse Directive 2003/6/EC (MAD) entered into force on 12 April 2003 and established an European Union (EU) wide regime for dealing with insider trading and market manipulation.
As part of its mission to make the financial markets more robust and transparent, the European Commission (Commission) proposed in 2011 a revision of the market abuse legislation. The revision of MAD included a draft Regulation on insider dealing and market manipulation with the aim of updating and strengthening the existing rules, and a draft Directive that would set out minimum criminal sanctions for market abuse. As a result of this revision exercise, the Commission identified a number of issues:
gaps in the regulation of new markets, platform and over-the-counter (OTC) trading in financial instruments
gaps in the regulation of commodities and commodity derivatives
regulators historically being unable to enforce the MAD, and
administrative burdens, especially for small and medium-sized enterprises (SMEs)
The Market Abuse Regulation (Regulation (EU) 596/2014) (Market Abuse Regulation) on market abuse came into effect on 3 July 2016. It formed part of the wider reform of the financial markets, which also includes MiFID II and EMIR.
The new Market Abuse regime aims to:
keep pace with market developments (eg advancements in technology or trading practices)
strengthen the fight against market abuse across commodity and related derivative markets
explicitly ban the manipulation
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