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Implementation of the Market Abuse Regulation (MAR)

9th September 2015

The 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

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.

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:

• A Regulated market
• A Multi-Lateral Trading Facility (MTF)
• An Organised Trading Facility (OTF)

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.

Market Abuse Regulation (MAR)