Market Abuse Regulation
The Market Abuse Regulation (MAR) aims to increase market integrity and investor protection. Find out more about the application and structure of the MAR, market abuse offences and exemptions.
WHAT IS THE MARKET ABUSE REGULATION
The Market Abuse Regulation (MAR) came into effect in 2016, replacing the Market Abuse Directive (MAD). MAR has the same overall goal as Market Abuse Directive to stop market abuse and heightening the overall integrity of the EU financial markets, and extends the scope to new markets, platforms and behaviours, plus increases the disclosure and record keeping requirements.
Scope of MAR is based on the instruments being traded and includes all instruments that are traded on a regulated market, Multilateral Trading Facility (MTF), Organised Trading Facility (OTF), or certain derivative contracts based on these instruments.
MAR requires financial firms to proactively identify and report on suspicious activity, market abuse and financial crime, such as insider trading and market manipulation. However, to achieve this they need to holistically review and analyse a broad set of structured and unstructured information, from trades and orders to communications, instant messages or even meeting minutes, which is no small task.
CENTRAL MAR OFFENCES
MAR particularly focuses on three ‘core’ offences – insider dealing, unlawful disclosure of inside information, and market manipulation. These requirements encompass disclosure obligations, including but not limited to:
- Disclosure of inside information (with separate requirements for disclosing any delays)
- Transactions by persons discharging managerial responsibility
- Insider lists
- Investment recommendations and any conflicts contained
- Suspicious transaction and order reports