PIMFA
Market Abuse
Market abuse occurs when a person misuses information in order to disadvantage other investors or gain an unfair advantage as an investor.
It consists of a number of specific conduct that create unfair market conditions to the advantage of those carrying them out, but to the disadvantage of honest market players.
- Legal framework relating to market abuse
- uk marKET RULES
These rules apply to:
a) Financial instruments admitted to trading on a UK or an EU regulated market or for which a request for admission to trading on a UK or an EU regulated market has been made.
b) Financial instruments traded on a UK or an EU multilateral trading facility (MTF), admitted to trading on a UK or an EU MTF, or for which a request for admission to trading on a UK or an EU MTF has been made.
c) Financial instruments traded on a UK or an EU organised trading facility (OTF).
Financial instruments not covered by point (a), (b) or (c), the price or value of which depends on or has an effect on the price or value of a financial instrument referred to:
- In those points, including, but not limited to, credit default swaps and contracts for difference.
- Emission allowances and related auction products as described in ‘UK MAR and UK Emissions Trading Scheme’.
Firms must have special measures in place to prevent such abuse as well as specific procedures to enable suspicious transaction and order reports (“STORs”).
