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MAD/MAR

Market Abuse Directive (MAD)/Market Abuse Regulation (MAR)

The Market Abuse Directive (MAD) and the Market Abuse Regulation (MAR) shall ensure the integrity of European financial markets and increase investor confidence. Any unlawful behavior in the financial markets is prohibited. The concept of market abuse typically consists of insider dealing, unlawful disclosure of inside information, and market manipulation.

Objective

Their objective is to ensure even more efficient, transparent and trustworthy European financial markets and to create a level playing field for all economic operators in the Member States as part of the effort to combat market abuse.

MAR does not limit its scope of application to 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. MAR covers financial instruments admitted to trading or traded on Multilateral Trading Facilities (MTFs), financial instruments traded on Organised Trading Facilities (OTFs), and emission allowances.

MAR provides for a minimum set of supervisory and investigatory powers which the national competent authorities should be entrusted with under national law and delivers a set of administrative sanctions.

The framework strengthens the fight against market abuse across commodity and related derivative markets, explicitly bans the manipulation of benchmarks, such as LIBOR, and reinforces the investigative and sanctioning powers of regulators.

Timeline

MAD was published in the Official Journal of the European Union and entered into force on 12 April 2003. MAR was published in the Official Journal of the European Union on 12 June 2014 and has applied since 3 July 2016.

In October 2019, following a formal request from the European Commission, the European Securities and Markets Authority (ESMA) conducted a consultation on the functioning of MAR, covering a wide range of possible amendments to certain provisions of MAR as well as on issues related to the legal text in its current form. On the basis of a comprehensive assessment and the contributions to its consultation, ESMA was tasked to prepare a report. In September 2020, ESMA published its report, including its recommendations to the Commission. The Commission is expected to begin reviewing MAR in 2022, taking into account ESMA’s recommendations.

MAD/MAR: the highlighted parts of the value chain are affected


ESMA issued its report on the review of MAR

ESMA published the outcome of its MAR review, including its recommendations to the European Commission. The recommendations will feed into the forthcoming review of MAR by the European Commission itself, which is expected in 2021.

DBG’s response to ESMA’s consultation on MAR

DBG submitted its views on ESMA’s consultation paper on MAR, welcoming the forthcoming review and emphasizing that the existing regulatory framework is fit for purpose and appropriate.

ESMA consults on provisions of MAR

ESMA opened a consultation on certain provisions of the MAR, as requested by the European Commission. The consultation covers a wide range of issues, including recommendations to amend some provisions of MAR.

ESMA: final MAR guidelines on commodity derivatives

ESMA has published the official translations of its final guidelines on commodity derivatives under the Market Abuse Regulation (MAR). The guidelines clarify one element of the regulation’s definition of inside information in relation to commodity derivatives.

Legal basis

Find the most recent legal text on this regulation here.