In recent years the more globalised nature of financial markets has given rise to new trading platforms and technologies. In an attempt to provide a more transparent marketplace and improve investor confidence and market integrity, the EU introduced the Market Abuse Regulation (MAR), which came into effect on the 3rd of July 2016. MAR provides a single rulebook across all EU Member States for the issuers of securities listed or traded on EU Markets.
The scope of MAR extends to all financial instruments admitted to trading on a Multilateral Trading Facility (MTF), such as the Irish Stocks Exchanges, or an Organised Trading Facility (OTF). MAR also extends to financial instruments, the price or value of which depends on, or has an effect on the price or value of, a financial instrument traded on a regulated market, MTF or OTF (financial derivatives)
In addition to extending the scope of the legislation to include additional financial instruments and trading venues, MAR also addresses the following matters:
- Additional regulation regarding insider dealing, market manipulation and the unlawful disclosure of inside information. For example, inducing another to transact on the basis of insider information now amounts to the unlawful disclosure of insider information.
- Requirements concerning the public disclosure of inside information.
- The maintenance of insider lists.
- Disclosure requirements for dealings in the issuers securities by “persons discharging managerial responsibilities” and persons closely associated with them.
Insider Lists
MAR imposes more rigorous requirement regarding the maintenance of insider lists. Insider lists are required to be prepared on a deal-specific/event specific basis and maintained in electronic format in accordance with a prescribed template and must be made available to the Central Bank of Ireland as soon as possible upon request.
Persons Discharging Managerial Responsibility
Persons Discarding Managerial Responsibility and Persons Closely Associated with them (such as spouses) must notify the issuer of relevant personal transactions they undertake in the issuers’ financial instruments. The obligation to disclose managers transactions is now extended to financial instruments traded on MTF’s and OTF’s together with trades in derivatives and credit instruments. There is also a reduced notification period of 3 business days.
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