The Market Abuse Regulation (MAR) came into effect in 2016, replacing the Market Abuse Directive (MAD). MAR has the same overall goal as its predecessor - preventing market abuse and heightening the overall integrity of the EU financial markets - but extends the scope to new markets, new platforms and new behaviours, and increases the disclosure and record keeping requirements.
The scope of MAR is based on the instruments being traded and includes all instruments that are traded on a regulated market, Multilateral Trading Facility (MTF), Organised Trading Facility (OTF), or certain derivative contracts based on these instruments.
MAR particularly focuses on three ‘core’ offences – insider dealing, unlawful disclosure of inside information, and market manipulation. These requirements encompass disclosure obligations, including but not limited to:
The additional data and compliance monitoring required for firms to a) comply with basic disclosure and record keeping requirements and, more importantly, b) conduct the monitoring and surveillance to detect potential market abuse in an effective and timely manner, has proven to be a challenge for a lot of firms.