Market abuse: Difference between revisions
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[http://www.treasurers.org/node/3244 ACT briefing note: The New Market Abuse and Disclosure Regime in the UK - A Guide for Listed Companies; 2005] | [http://www.treasurers.org/node/3244 ACT briefing note: The New Market Abuse and Disclosure Regime in the UK - A Guide for Listed Companies; 2005] | ||
Revision as of 09:28, 11 May 2015
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 due to be 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.
See also
