EU Market Abuse Regulation—background and purpose

The Market Abuse Regulation (EU) 596/2014 (the EU Market Abuse Regulation or EU MAR) repealed and replaced the existing Market Abuse Directive (Directive 2003/6/EC) (EU MAD) and its implementing legislation on 3 July 2016. It introduced an updated and strengthened EU market abuse regime, incorporating a wider range of, and tougher, sanctions.

EU MAR was complemented by the Directive on Criminal Sanctions for Market Abuse Directive 2014/57/EU (EU CSMAD). For an overview of EU CSMAD, see Practice Note: Directive 2014/57/EU on criminal sanctions for market abuse.

The majority of the EU MAR's provisions came into effect on 3 July 2016. Provisions that relied on the implementation of the MiFID II legislative package (Markets in Financial Instruments Directive 2014/65/EU (EU MiFID II) and the Markets in Financial Instruments Regulation (EU) 600/2014 (EU MiFIR)) relating to organised trading facilities (OTFs), small and medium-sized enterprises (SMEs), growth markets, emission allowances or auctioned products based on emission allowances, applied from the MiFID II and EU MiFIR implementation date of 3 January 2018.

Regulation (EU)