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The Market Abuse Regulation (MAR) came into effect on July 3, 2016. It aims to increase market integrity and investor protection, enhancing the attractiveness of securities markets for capital raising.

MAR strengthens the previous market abuse framework by extending its scope to new markets, new platforms and new behaviours.  It contains prohibitions of insider dealing, unlawful disclosure of inside information and market manipulation, and provisions to prevent and detect these.

Days Since MAR Came Into Effect: Are You Compliant?

days
0
-77
-4
hours
-2
-2
minutes
-5
-1
seconds
-3
-9

MAR applies to:

  • Financial instruments admitted to trading on regulated market or for which a request for admission to trading on a regulated market has been made.
  • Financial instruments traded on a multilateral trading facility (MTF), admitted to trading on an MTF, or for which a request for admission to trading on an MTF has been made.
  • Financial instruments traded on an organised trading facility (OTF)
  • Financial instruments not covered above, the price or value of which depends on or has an effect on the price or value of a financial instrument referred to in those points, including, but not limited to, credit default swaps and contracts for difference.

Structure of MAR

MAR consists of different 'levels':

Market Abuse Offences

Inside Information

The definition of ‘inside information’ is broadly unchanged in MAR from the previous definition, but is wider to capture inside information for spot commodity contracts. There is also a new definition of inside information for emission allowances and auction products based on these.

Insider Dealing and Unlawful Disclosure

MAR clarifies that the use of inside information to amend or cancel an existing order constitutes insider dealing. It also prohibits persons in possession of insider information from using that information to deal or attempt to deal in financial instruments or to recommend or induce another person to transact on the basis of inside information.

Market Soundings

MAR introduces a framework to make legitimate disclosures of inside information in the course of market soundings. Provided certain requirements are met, disclosing market participants are protected from an allegation of unlawful disclosure of inside information.

Market Manipulation

MAR defines and prohibits market manipulation. This offence has been extended to capture attempted manipulation, benchmarks and in some situations spot commodity contracts.

Interaction with MiFID II

The interaction between MAR and MiFID II is explained in MAR Article 39.

MiFID II is considerably broader than its predecessor and makes sweeping changes to pre- and post-trade transparency in addition to extending instrument coverage and trading venues (once MiFID II is implemented, MAR will harmonise with this extended instrument coverage). Best execution requirements within MiFID II include the need to demonstrate ‘sufficient efforts’.

Days Since MAR Came Into Effect: Are You Compliant?

days
0
-77
-4
hours
-2
-2
minutes
-5
-1
seconds
-3
-9