The Market Abuse Regulation (or MAR) is the EU's cornerstone
piece of legislation in its fight against the abuse in financial
markets (market abuse). MAR expressly acknowledges that the smooth
functioning of financial markets, and public confidence therein, is
highly dependent on market integrity – which, in itself, is
severely hampered by market abuse.
This article (the first of two parts) will focus on the scope
and principles of MAR and will also shed some light on the three
main prohibitions under MAR and their corresponding safe
harbours.
Scope
MAR effectively encompasses any transaction, order, or behaviour
relative to the following financial instruments (as defined in
MiFID II), and this irrespective of whether it (i.e. the behaviour)
takes place on a trading venue or not:
