Preventing, detecting and punishing market abuse is a high priority for us. It is very important in fulfilling our objectives of protecting consumers, enhancing market integrity and promoting competition. We are collaborating closely with the financial services industry, law enforcement agencies and other regulators to combat market abuse and other related financial crime. We also aim to aducate market participants so they can make smarter choices and reduce the chances of being a victim of market abuse.
Definition of Market Abuse
Market Abuse Regulation (“MAR”), the European Union defines market abuse as a concept that encompasses unlawful behaviour in the financial markets. Certain types of behaviour, such as insider dealing and market manipulation, can amount to market abuse. In an effort to standardise market abuse. Firms must have safeguards in place to identify and reduce the risk of market abuse and other financial crime.
Market abuse can thus be committed via an innocent third party and, indeed by one or more persons acting together.
The Market Abuse Regulation outlines three main forms of market abuse:
Insider Dealing – This is the act of utilizing inside information in order to make, change, or cancel deals, or to encourage a third-party to deal using this knowledge.
Unlawful disclosure of inside information – This is the act of releasing information without correct permissions.
Market manipulation – This is the umbrella term for a series of actions which distort market performance.
Market Abuse Regulation (MAR)
MAR was created by the European Union and came into effect on 3 July 2016 to keep pace with financial market developments, to create capital markets transparency and to protect investors within all member states. The Market Abuse Regulation aims to protect investors by increasing transparency in the financial markets and quelling market abuse. It prohibits insider dealing, unlawful disclosure of inside information, and market manipulation. Firms must have safeguards in place to identify and reduce the risk of market abuse and other financial crime.
Detection and avoidance
We work closely with the financial services industry to identify and prevent market abuse.
We also undertake our own surveillance of financial markets and have systems for identifying insider dealing and market manipulation in various financial markets. This includes analysing transaction reporting data, order book data, benchmark submission and other market data.
This significantly helps us in detecting market abuse. Our market monitoring department is also in regular contact with trading firms, market operators and investors to identify suspicious trading.
Report market abuse or contact us
If you are concerned about market abuse, not a firm or trading venue or a whistleblower, but want to contact us about suspected market abuse, you can email us in our address:
Please include as much information as possible so we can assess your concerns. Please tell us:
- the name of the financial instrument which you believe has been used in or impacted by market abuse
- the identity of any people or companies involved
- specific dates and times of any transactions which you believe amount to market abuse
- an explanation of your reasons for believing that market abuse has been committed
Please attach any documents you have that support your concerns
Find out how to make make a complaint about a suspicious firm or a trading subject