Inside this Topic Guide
An EU wide framework for tackling market abuse and market manipulation was first introduced in 2005. Since then the financial markets have seen the creation of new forms of financial instruments and the emergence of new trading platforms and venues. Coupled with a poor track record for the prevention and enforcement of market abuse in some member states, in 2011 the European Commission began consultation on a proposal for a Regulation on insider dealing and market manipulation (MAR) and a Directive on criminal sanctions for insider dealing and market manipulation (CSMAD) to update and strengthen the market abuse framework established back in 2005. The new regime introduced by MAR and CSMAD came into effect on 3 July 2016.
The key changes introduced by MAR II include:
- extending the market abuse regime to apply not only to financial instruments admitted to trading on a regulated market but to financial instruments on other trading platforms such as multilateral trading facilities and organised trading facilities and related financial instruments;
- extending the market abuse rules to cover EU emissions allowances;
- bringing the manipulation of benchmarks expressly within the market manipulation offence;
- the introduction of a new offence of attempted market manipulation;
- the introduction of a specific format for insider lists;
- a new requirement to notify the regulator on announcement of inside information where the issuer has delayed the announcement of that information;
- the introduction of a specific regime for the disclosure of inside information in the course of market soundings; and
- the extension of the Suspicious Transaction Reporting (STR) regime to cover suspicious orders.
|Status:||MAR and CSMAD were published in the Official Journal of the European Union on 12 June 2014.
Delegated Acts under MAR have been made and are in force
Most technical standards adopted by Commission and subject to scrutiny by the Parliament and the Council. Some implementing technical standards awaiting adoption by Commission.
ESMA consulting on Level 3 guidelines
See overview table in MAR and CSMAD tab of this Topic Guide for full status of all Level 2 and 3 measures
|Next:||Parliament and Council to confirm no objection to Level 2 measures adopted by Commission
Legislation to amend and delay application of MiFIR until January 2018 has been adopted by the EU Parliament and EU Council and will be published in Official Journal. This legislation will also postpone application of Article 4(2) and (3) of MAR.
|Implementation:||3 July 2016 national transposition deadline for CSMAD
3 July 2016 MAR applies
UK FCA made final rules in April 2016 in PS 16/13 including amendments to FCA Handbook
UK statutory instrument on MAR implementation came into effect on 3 July 2016
|Maria Luisa Alonso (Madrid)||Lucio Bonavitacola (Milan)|
|Chris Bates (London)||Carlos Conceicao (London)|
|Hans Beerlage (Amsterdam)||Caroline Dawson (London)|
|Marc Benzler (Frankfurt)||Dorian Drew (London)|
|Anna Biala (Warsaw)||Steven Fox (London)|