MARKET ABUSE REGULATION:

MAR strengthens the previous UK market abuse framework by extending its scope to new markets, new platforms and new behaviors’.

It contains prohibitions of insider dealing, unlawful disclosure of inside information and market manipulation, and provisions to prevent and detect these.

Firms and individuals in scope of the MAR should review all of the regulation and ensure they are in compliance with all relevant provisions.

Application of MAR:

The Market Abuse Regulation (MAR) applies to:

1. financial instruments admitted to trading on a regulated market or for which a request for admission to trading on a regulated market has been made
2. 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
3. financial instruments traded on an organised trading facility (OTF)
4. financial instruments not covered by point (a), (b) or (c), 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

This Regulation also applies to behavior or transactions, including bids, relating to the auctioning on an auction platform authorized as a regulated market of emission allowances or other auctioned products based thereon, including when auctioned products are not financial instruments. Without prejudice to any specific provisions referring to bids submitted in the context of an auction, any requirements and prohibitions in MAR referring to orders to trade shall apply to such bids.

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 inside 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.

·         Exemptions:

Buy-back programmes and stabilisation measures - Providing certain requirements are met, trading in securities or associated instruments for the stabilisation of securities or trading in own shares in buy-back programmes are exempt from the prohibitions against market abuse.

Accepted market practices (AMPs):

Regulators are able to establish an AMP, subject to certain criteria and conditions.

A practice that is accepted in a particular market by that market’s regulator cannot be considered as applicable to other markets unless the regulators of those other markets have also officially accepted the practice. Please note that we have not established any AMPs.