United Kingdom

Topic: Market abuse

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ESMA publishes outcomes of MAR review

Introduction On 24 September 2020, the European Securities and Markets Authority (ESMA) published a review report of the Market Abuse Regulation (MAR). The report is the first in-depth review of the functioning of MAR since its implementation in 2016, and its recommendations will feed into the European Commission’s review of MAR. Background The report covers … Continue Reading

Market Watch 65

On 7 September 2020, the FCA published the latest issue of its market conduct newsletter, Market Watch (issue 65). In this issue of Market Watch the FCA discusses how inappropriate handling of information requirements issued by the FCA can hinder, or even compromise, its preliminary reviews of, and investigations into, suspected market abuse. The FCA … Continue Reading

Enforcement Update – vulnerable customers, AML and market disclosures

After a relatively quiet start to the year on the enforcement front, the FCA published three notable Final Notices in June 2020. All relate to areas which have been a focus for the FCA for some time: the fair treatment of customers experiencing financial difficulty (especially important in light of Covid-19); AML controls; and ensuring … Continue Reading

Heightened risk of market abuse in a remote working context?

In a recent snapshot poll of webinar participants, 87% of our clients thought there was an increased risk of market abuse in a remote working context. The FCA appears to share this view and has identified a heightened risk of market abuse in the context of COVID-19 in the following areas: (i) in the context … Continue Reading

Horizon scan: more FCA spoofing cases in 2020/21?

Commentators sometimes compare the FCA’s spoofing case record unfavourably with that of its US counterparts. Where the FCA has pursued cases, typically the FCA has used its civil powers in relation to market manipulation rather than its criminal powers to prosecute those who create false or misleading impressions in relation to the market in or … Continue Reading

ACER updates REMIT guidance documentation

On 30 June 2020, the Agency for the Co-operation of Energy Regulators (ACER) updated the following documents concerning the Regulation on wholesale energy market integrity and transparency (REMIT): Q&As on REMIT (23rd edition). The new Q&As cover inside information, REMIT definitions, obligations and prohibitions for market participants. In particular, it deals with the question of … Continue Reading

FCA Best practice note – Identifying, controlling and disclosing inside information

On 10 June 2020, the FCA issued its latest Primary Market Bulletin setting out the feedback to its consultation on a best practice note aimed at government departments, industry regulators and public bodies regarding the identification, control and disclosure of inside information. The best practice note can be found here.  … Continue Reading

European Commission report on the implementation of the CSMD

On 13 March 2020, the European Commission published a report regarding the implementation of the Directive on Criminal Sanctions for Market Abuse (CSMAD). The CSMAD establishes minimum rules for criminal sanctions for insider dealing, for unlawful disclosure of inside information and for market manipulation. It ensures the effective implementation of the Market Abuse Regulation by … Continue Reading

ESMA issues 2019 report on accepted market practices under MAR

On 13 December 2019, the European Securities and Markets Authority (ESMA) published its second annual report on the application of accepted market practices (AMPs) in accordance with the Market Abuse Regulation (MAR). ESMA’s report provides an overview on the establishment and application of AMPs in the EU after MAR became applicable, including the AMPs established … Continue Reading

ESMA issues second annual report on penalties and measures issued under MAR

On 12 December 2019, the European Securities and Markets Authority (ESMA) published its second annual report on administrative and criminal sanctions and other administrative measures imposed by Member State competent authorities (NCAs) under the Market Abuse Regulation (MAR). The report covers the period from January to December 2018 and contains aggregated information on administrative and … Continue Reading

FMLC letter to ESMA consultation on MAR review

On 29 November 2019, the Financial Markets Law Committee (FMLC) published a letter responding to the European Securities and Markets Authority’s (ESMA) consultation paper on the review of the Market Abuse Regulation (MAR). In the letter, the FMLC raises concerns that the possibility to later amend the definition of inside information is likely to be … Continue Reading

FCA Market Watch issue 62

On 18 October 2019, the FCA published the latest issue of Market Watch (no. 62), its newsletter on market conduct and transaction reporting issues. In this issue of Market Watch, the FCA shares its concerns about personal account dealing (PAD), where employees of authorised firms trade for themselves rather than for clients. It also sets out the … Continue Reading

ESMA final report on draft RTS on co-operation arrangements under MAR

On 8 October 2019, the European Securities and Markets Authority (ESMA) issued its final report on a set of draft regulatory technical standards (RTS) on co-operation arrangements under the Market Abuse Regulation (MAR). Article 26 of MAR mandates ESMA to develop draft RTS containing a template document for cooperation arrangements that are to be used … Continue Reading

ESMA consults on MAR review – focus on spot FX contracts, inside information and benchmarks

Introduction On 3 October 2019, the European and Securities Markets Authority (ESMA) published a consultation paper on the Market Abuse Regulation (MAR) review report. Article 38 of MAR requires the European Commission (Commission) to present a report to the European Parliament and the Council of the European Union to assess various provisions of MAR. In … Continue Reading

ESMA consults on MAR review

On 3 October 2019, the European and Securities Markets Authority (ESMA) published a consultation paper on the provisions of the Market Abuse Regulation (MAR). Article 38 of MAR requires the European Commission (Commission) to present a report to the European Parliament and the Council of the European Union to assess various provisions of MAR. In … Continue Reading

New FCA webpage – polling and MAR

On 3 September 2019, the FCA published a webpage on how the Market Abuse Regulation (MAR) may apply to information obtained via electoral polling. The webpage sets out how the FCA expects firms and individuals to handle any information that has the potential to be inside information, including information obtained as a result of polling. … Continue Reading

FCA new measure of market cleanliness – the Abnormal Trading Volume ratio

On 9 July 2019, the FCA published a new webpage on measuring market cleanliness following the introduction of an additional metric, the Abnormal Trading Volume ratio (ATV). The ATV ratio expands on the traditional market cleanliness metric of measuring solely large movements in share prices before a public announcement by encompassing over 1,000 events. The … Continue Reading

ESMA updates MiFID II Q&As on investor protection and intermediaries’ topics

On 29 May 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on MiFID II and MiFIR investor protection and intermediaries’ topics. The updated Q&As insert: (i) five new questions on best execution; and (ii) four new questions on information on costs and charges.  … Continue Reading

Commission request to ESMA on clarifying Article 38 of MAR

On 15 May 2019, the European Commission (Commission) published a letter (dated 20 March 2019) that it sent to the European Securities and Markets Authority (ESMA) regarding technical advice on the report to be submitted by the Commission under Article 38  of the Market Abuse Regulation (MAR). Under Article 38 of MAR, the Commission is … Continue Reading

FCA speech on improving compliance with market abuse regime

On 13 February 2019, the FCA published a speech by Julia Hogett (JH) (Director of Market Oversight at the FCA) on the implementation of the Market Abuse Regulation (MAR). Highlights of the speech include the following: compliance with MAR requires a whole series of situational judgements to be made; a regulatory system that relies on … Continue Reading

ESMA annual report on administrative and criminal sanctions and other administrative measures under MAR

On 15 November 2018, the European Securities and Markets Authority (ESMA) published its latest annual report regarding aggregated information on all administrative sanctions and other administrative measures imposed by national competent authorities and criminal sanctions imposed in a given year.… Continue Reading

ESMA updates MAR Q&As

On 12 November 2018, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the Market Abuse Regulation (MAR). The updated Q&As inserts one new question on the application of the prohibition contained in Article 19(11) MAR to issuers. Specifically, the new question asks whether the prohibition encompasses transactions of … Continue Reading

Market Watch 57 – ‘flying prices’ and ‘printing trades’

The FCA has published its latest issue of Market Watch, its newsletter on market conduct and transaction reporting issues. The FCA refers to a previous issue of Market Watch (issue 48) in which it highlighted concerns about firms publishing incorrect volume data and the possible market abuse risks related to this practice. The FCA remains … Continue Reading
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