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What is market abuse?

Market abuse consists in unlawful behavior in relation to trading in financial markets. Generally and according to EU MAR (Article 1), it encompasses:
  • Insider dealing (and attempted insider dealing), and the unlawful disclosure of inside information; 
  • Market manipulation (and attempted market manipulation).

Insider dealing

According to EU MAR (Article 8), insider dealing occurs when a person uses inside information by making transactions (buying or selling) or altering orders (modifying or cancelling), for its own account or for 3rd party account, directly or indirectly, regarding financial instruments to which that information relates.

Insider dealing is also known as insider trading.


Unlawful disclosure of inside information

According to EU MAR (Article 10), unlawful disclosure of inside information arises when a person discloses inside information to any other person - except where the disclosure is made in the normal exercise of employment.


Market manipulation

In general terms, based to EU MAR (Article 12), market manipulation comprises the following activities:
  • Making a transaction, placing an order, disseminating information or any other behavior with the purpose of:
    • Giving false or misleading signals regarding the demand/supply or the price of a financial instrument;
    • Securing the price of a financial instrument;
    • Altering the price of a financial instrument;
  • Providing false or misleading inputs in relation to a benchmark or any other behavior which manipulates the calculation of a benchmark.
In more specific terms, based on EU MAR's Commission Delegated Regulation (EU) 2016/522 Annex II, market manipulation comprises the following practices:

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