Market abuse: Difference between revisions
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Market abuse is the term used to describe any misuse of confidential or non public information so as to attempt to gain a trading advantage. Market abuse also encompasses: insider dealing;improper disclosure; manipulating transactions; manipulating devices; misleading dissemination. | Market abuse is the term used to describe any misuse of confidential or non public information so as to attempt to gain a trading advantage. Market abuse also encompasses: insider dealing; improper disclosure; manipulating transactions; manipulating devices; misleading dissemination. | ||
Legislation exists in most financial markets to specify the detail of what is prohibited as market abuse and within the EU this is covered by the Market Abuse Directive ([https://www.esma.europa.eu/system/files/Dir_03_6.pdf Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003]) and the revised Market Abuse Directive II and the Market Abuse Regulation which are in the process of being enacted in 2014 | Legislation exists in most financial markets to specify the detail of what is prohibited as market abuse and within the EU this is covered by the Market Abuse Directive ([https://www.esma.europa.eu/system/files/Dir_03_6.pdf Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003]) and the revised Market Abuse Directive II and the Market Abuse Regulation which are in the process of being enacted in 2014 | ||
Revision as of 22:04, 7 February 2014
Market abuse is the term used to describe any misuse of confidential or non public information so as to attempt to gain a trading advantage. Market abuse also encompasses: insider dealing; improper disclosure; manipulating transactions; manipulating devices; misleading dissemination.
Legislation exists in most financial markets to specify the detail of what is prohibited as market abuse and within the EU this is covered by the Market Abuse Directive (Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003) and the revised Market Abuse Directive II and the Market Abuse Regulation which are in the process of being enacted in 2014
For example trading in a company's shares whilst in the possession of inside information that a profits warning was about to be announced would be insider trading and therefore market abuse.
