MAR (Market Abuse Regulation) is EU Regulation 596/2014 prohibiting insider dealing, unlawful disclosure, and market manipulation. It applies in the UK as retained EU law.
Three Types of Market Abuse
| Abuse Type | Description | Example |
|---|---|---|
| Insider Dealing | Trading on inside information | Director buys shares before profit warning |
| Unlawful Disclosure | Sharing inside information improperly | Telling friend about upcoming acquisition |
| Market Manipulation | Artificial price movements | False rumours, wash trades, spoofing |
Key Articles
| Article | Subject | Requirements |
|---|---|---|
| Article 17 | Inside Information | Disclose "as soon as possible" via PIP; 5-year website archive |
| Article 19 | PDMR Dealings | Announce director trades within 3 business days (€20k threshold) |
PDMR = Persons Discharging Managerial Responsibilities (directors, senior executives)
Delayed Disclosure
MAR permits delaying announcements when:
- Delay serves legitimate interests (e.g., ongoing negotiations)
- Confidentiality maintained
- FCA notified of delay and reasons
- Public not misled
Common use cases: M&A negotiations, financial difficulties, product development.
FCA Enforcement Powers
- Trading surveillance and monitoring
- Investigation of suspected breaches
- Sanctions: fines, trading bans, director disqualification
- Criminal prosecution for serious cases
- Market Abuse Returns reporting