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Here to help with Regulation and Compliance
Market Abuse Regulation (MAR)
Implementation of the Market Abuse Regulation (MAR)
9th September 2015
The new Market Abuse Regulation (MAR) was published in the Official Journal of the European Union last summer with member states being required to transpose it into national law next year, by 3rd July 2016.
In preparation for MAR implementation in the UK, the FCA issued further guidance this summer and below we provide an overview of MAR and the changes it will bring next year.
What is MAR?
The Market Abuse Regulation will repeal and replace the existing Market Abuse Directive (MAD) when it comes into force next year. Once implemented, MAR will seek to strengthen the existing UK market abuse framework by extending its scope to new markets, new platforms and new behaviours. In addition it will contain prohibitions for insider dealing and market manipulation and provisions to both prevent and detect these.
Key Requirements of MAR:
The new Market Abuse Regulations covers the following key requirements:
Market Abuse News
Objectives of MAR: Overview
- to increase market integrity
- to increase investor protection
- to establish a single rulebook and level playing-field across the EU
- to increase the attractiveness of securities markets for capital raising
Inside Information and disclosure Whilst largely unchanged, the definition of inside information under MAR will be widened to capture inside information for spot commodity contracts. |
Market Soundings MAR will introduce a framework for individuals to make legitimate inside information disclosures in the course of market soundings. |
Accepted Market Practices (AMPs) MAR's requirements continue to allow regulators to establish accepted market practices which is subject to certain conditions and criteria |
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Insider dealing and unlawful disclosure The use of inside information to amend or cancel an order is clarified as insider dealing. Recommending or inducing another to transact on the basis of inside information is also clarified as unlawful disclosure. |
Managers' Transactions Those persons discharging managerial responsibilities within issuers (PDMRs) and those closely associated must notify the FCA and the issuer of relevant personal transactions and the issuer must make this information public within 3 working days. |
Investment Recommendations MAR will continue to require individuals producing or disseminating investment recommendations to ensure information is presented objectively and to disclose any possible conflicts of interest. |
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Market Manipulation This offence will be extended to cover attempted manipulation also. Benchmarks, and spot commodities in some situations are now within the scope of this offence. |
Insider Lists MAR places an obligation on issuers and Emission Allowance Market Participants (EAMPs ) to draw-up and maintain a list of all those individuals working for them that have access to inside information. |
Whistleblowing MAR places requirements on the FCA and firms to be able to receive whistle blowing notifications. |
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Buy back programmes & stabilisation measures MAR revises the existing MAD framework for conducting buy-back programmes and stabilisation measures. |
Suspicious Transaction or Order Reports (STORs) MAR will extend the current obligation to report suspicious transaction report to include suspicious orders also. Trading venues are also captured by this obligation. |
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Application of MAR:
MAR tackles unlawful disclosure of inside information, the prohibitions of insider dealing as well as market manipulation and will apply to Financial Instruments that are traded upon; admitted to trading upon; or that a request for admission to trading upon any of the following has been made:
In addition, those Financial Instruments that the price or value of which depends on or has an effect on the price and value of any financial instrument detailed above will be included under the application of MAR. This includes credit default swaps and contracts for difference (CFDs).
MAR will also apply to emission allowances, emission allowance market participants (EAMPs) and spot commodities are also within scope in certain situations.
Support & Assistance:
If you would like further information or assistance on the application of MAR for your business, please get in touch with our Regulatory Support team.
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