Chapter 1 - Market Abuse Regulation (MAR) Flashcards
When was the MAR introduced?
July 2016
Under what circumstances or instruments will MAR be applicable?
- Instruments traded on a regulated market or which a request to trade has been made.
- Instruments traded on a MTF or OTF.
- Trades for instruments whose value depends on/or has an effect on the price or value of an investment - CDSs, CFDs
- Bids on an auction platform for regulated emission allowances.
Which ESMA guidelines did MAR implement?
- Inside info on commodity derivatives, spot markets, EAMPs.
- Delaying disclosure of inside information
- Market soundings
- Insider lists - for EAMPs as well.
When may an issuer delay inside information disclsoure?
When it’s in the interest of financial stability.
When must an issuer inform the FCA if it intends to delay the disclosure of inside information?
Immediately - appropriate records outlining why the decision was made need to be kept but not provided unless requested by the FCA.
In what circumstances will MAR not be applicable?
- Price stabilisation purposes
2. Share buy back activities
What are example of market manipulation under MAR?
- False/misleading signals from trades
- False/misleading signals from disseminating information.
- Using ficticious devices or other deceptions to affect the price.
- Collaboration to secure a dominant market position over market supply and demand.
Who are the disclosure rules for personal trading applicable to?
PDMRs - Persons Discharging Managerial Responsibilities and persons closely associated with them within issuers or EAMPs
To whom and when should disclosure of personal dealing be made?
FCA and the issuer/EAMP
When the sum total of personal transactions per calendar year reaches 5000 euros, a notification must be made public within 3 business days.
When cannot personal dealings take place?
During the closed period.
