Market Abuse Regulations - Insights From EU Frameworks

Introduction

Market abuse, a term that encapsulates insider trading and market manipulation, has been a subject of increasing scrutiny and regulation in the financial markets. The objective of this article is to delve into the complexities of market abuse, examining its legal framework, the implications for market participants, and the mechanisms for its prevention and prosecution. This article aims to provide a nuanced understanding of market abuse, drawing upon European Union regulations, while also offering insights into the role of regulatory bodies in maintaining market integrity.

Defining Market Abuse

The term "market abuse" is primarily defined under Regulation (EU) No. 596/2014 on Market Abuse (Market Abuse Regulation – MAR) and Directive 2014/57/EU on criminal sanctions for market manipulation (Market Abuse Directive – MAD). The overarching aim of combating market abuse is to ensure the integrity of financial markets and bolster investor