KYB and Market abuse: Difference between pages

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imported>Doug Williamson
(Link with Confidential information.)
 
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1. ''Anti money laundering''.  
Market abuse includes any misuse of confidential or non public information so as to attempt to gain a trading advantage.  


Know Your Business.


Market abuse also encompasses:
# Insider dealing.
# Improper disclosure.
# Manipulating transactions.
# Manipulating devices.
# Misleading dissemination.


2. ''Credit risk management''.


Know Your Bank.  
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 ==
====Legislation====
* [[Dodd-Frank]]
* [[EMIR]]
* [[FATCA]]
* [[KY3P]]
* [[KYC]]
* [[MiFID]]
* [[Money laundering]]
* [[PEP]]


[[Category:Accounting,_tax_and_regulation]]
Legislation exists in most financial markets to specify the detail of what is prohibited as market abuse and within the EU this was covered by the Market Abuse Directive (Directive 2003/6/EC).
[[Category:The_business_context]]
 
[[Category:Identify_and_assess_risks]]
The Market Abuse Directive (MAD) was revised and replaced by MAD II which widens its scope to include new markets and instruments.
[[Category:Manage_risks]]
 
[[Category:Risk_frameworks]]
The Market Abuse Regulation (MAR) and the Criminal Sanctions for Market Abuse (CSMAD) form the legislative proposals which make up MAD II.
[[Category:Risk_reporting]]
 
 
MAD II came into force in July 2016.
 
 
==See also==
* [[Confidential information]]
* [[Insider dealing]]
 
 
 
===Other links===
 
[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]  
 
[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://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014R0596 MAR]
 
[http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014L0057 CSMAD]

Revision as of 10:43, 22 June 2017

Market abuse includes any misuse of confidential or non public information so as to attempt to gain a trading advantage.


Market abuse also encompasses:

  1. Insider dealing.
  2. Improper disclosure.
  3. Manipulating transactions.
  4. Manipulating devices.
  5. Misleading dissemination.


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.


Legislation

Legislation exists in most financial markets to specify the detail of what is prohibited as market abuse and within the EU this was covered by the Market Abuse Directive (Directive 2003/6/EC).

The Market Abuse Directive (MAD) was revised and replaced by MAD II which widens its scope to include new markets and instruments.

The Market Abuse Regulation (MAR) and the Criminal Sanctions for Market Abuse (CSMAD) form the legislative proposals which make up MAD II.


MAD II came into force in July 2016.


See also


Other links

Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003

ACT briefing note: The New Market Abuse and Disclosure Regime in the UK - A Guide for Listed Companies; 2005

MAR

CSMAD