Compliance Consultancy
Risk management and Consultancy firm

Market Abuse


Financial markets have become increasingly global, giving rise to new trading platforms and technologies. This has led, among others, to alternative ways of manipulating financial markets.

Market abuse destroys the integrity of the market and leads to financial instability. Investors must be protected from any manipulation and must feel confident to invest in the markets.

In the EU, the Market Abuse European Regulation 596/2014 and the Directive 2014/57/EU on the criminal penalties applicable to market abuse focuses on harmonizing the rules and following the developments in the financial markets following the 2008 crisis. The Regulation clearly states that professionals and investment firms must have efficient "arrangements, systems and procedures aimed at preventing and detecting insider dealing...".

What is market abuse?

What is Market Abuse ?
Market abuse is any behavior that aims to manipulate or distort the operation of financial markets in a way that disadvantages some market players unfairly or compromises the integrity of the market as a whole. It covers actions like insider trading, rumor-mongering, distributing misleading information, and other dishonest or fraudulent behavior.

Market manipulation is prohibited and has strong repercussions, including fines, jail time, and harm to the reputation of those engaged, whether they be people or businesses. The surveillance of trading activity, the investigation of suspicious behavior, and the imposition of sanctions on individuals found guilty of engaging in such practices are just a few of the steps regulators throughout the world have put in place to prevent and identify market abuse.

What is insider dealing?

Trading in securities, such as stocks or bonds, based on private information that is not generally known to the public is known as insider dealing. It can be carried out by people or businesses who have access to this information and are able to take advantage of it to obtain an unfair competitive edge over other market participants. It's against the law to engage in this behavior, and doing so can result in heavy fines and even prison time.
What is insider dealing?

How can Pideeco help you with Market Abuse?

Our decade-long experience in financial markets can help your business to:

- Draft or improve your procedures on market abuse.

- Help you navigate the regulatory framework for market abuse.

- Combine legal, financial, and IT knowledge to establish and maintain systems to detect market abuse that are tailor-made for your business.

- Create a gap analysis of your company’s market abuse systems and help you to make them more efficient.

- Conduct ex-post transaction investigations and report accordingly to the management.

- Write requirements for sample selections for monitoring and testing purposes for the 2nd line of defence.

- Train your staff members on any topic concerning market abuse.

Let us know how we can help! We'll get back to you lightning quick!

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