The Market Abuse Directive (MAD) and the Market Abuse Regulation (MAR) ensure the integrity and transparency of European financial markets and increase investor confidence through creating a level playing field for all economic operators in the Member States as part of the effort to combat market abuse. The concept of market abuse typically consists of insider dealing, unlawful disclosure of inside information, and market manipulation, all of which are prohibited.

MAD entered into force in April 2003, whilst MAR has been in application since July 2016. The Regulation is not limited in scope of application to financial instruments admitted to trading on a regulated market or for which a request for admission to trading on a regulated market has been made. It also covers financial instruments admitted to trading or traded on Multilateral Trading Facilities (MTFs), financial instruments traded on Organized Trading Facilities (OTFs), and emission allowances.

The framework strengthens the fight against market abuse across commodity and related derivative markets, explicitly bans the manipulation of benchmarks, such as LIBOR, and reinforces the investigative and sanctioning powers of regulators.

In October 2019, following a formal request from the European Commission, the European Securities and Markets Authority (ESMA) conducted a consultation on the functioning of MAR, covering a wide range of possible amendments to certain provisions of MAR. Following ESMA’s report, the Commission commenced the review process of MAR in 2022.

For further information on Deutsche Börse Group’s positioning on the matter, find our statements and position papers under Publications.