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Market abuse is a statutory offence that covers insider dealing and... Lernen beginnen
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... financial market manipulation.
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came into effect in 2016,
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EU Market Abuse Directive
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Following Brexit the UK ‘onshored’ (also referred to as 'retained’ or ‘assimilated’ EU Law) the EU MAR into the... Lernen beginnen
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EU MAR. There is no obligation to share information with EU authorities without a guarantee of... Lernen beginnen
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a guarantee of reciprocity. The Financial Conduct wzajemność
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After Brexit MAR became UK MAR. FCA took over the regulatory responsibilities previously held by... Lernen beginnen
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European Securities and Markets Authority.
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Improper disclosure is a market abuse. It's covered by Criminal Justice Act (CJA), and legislation relating to __ __. Lernen beginnen
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... misleading statements and Financial Services Act 2012
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Misleading statements types:| Making misleading statements, | Creating false or misleading impressions | or... and Financial Services Act 2012 Lernen beginnen
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... making misleading statements in relation to benchmarks.
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Financial Services Act 2012. The penalty on Summary Conviction is a fine or jail sentence not exceeding... Lernen beginnen
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Financial Services Act 2012. The penalty on Conviction on Inducement is a jail sentence not exceeding... korzyść majątkowa (w tym lapowka) Lernen beginnen
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What is a public censure? Lernen beginnen
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public reprimand issued by a regulator. It is a reputational sanction rather than a financial penalty.
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When deciding to take any action in regard to market abuse it may also consider additional factors, such as the impact that a financial penalty or public censure may have on the financial markets and... (mitigating factor) Lernen beginnen
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degree of sophistication of the users of the market in question.
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The FCA’s policy is not to have ‘two bites of the cherry', therefore, Lernen beginnen
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will not impose sanctions for market abuse where a person is being prosecuted for market misconduct (and other way round).
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UK MAR does not only apply to executed trades, it also applies to unexecuted orders and... Lernen beginnen
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Requests For Quotes (RFQ)
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Market abuse prevention and detection. Documented information of respective systems and controls should be maintained for a period of... Lernen beginnen
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for the proper regulator, that is FCA
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What does stand for STOR? Lernen beginnen
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Suspicious Transaction and Order Reporting It covers also the attempts to commit offenses. | To notify the FCA
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A subject of a STOR may constitute market manipulation or... Lernen beginnen
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Firms may submit a STOR, or they may submit a...? Lernen beginnen
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For activity which may not fall under STOR. | Market observations are, for example used when a firm or trading has observed a suspicious activity but is not involved in the activity itself and therefore does not have complete information.
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What qualifies as inside information in relation to commodity derivatives? (_narrative_) Lernen beginnen
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Precise, non-public information about commodity derivatives or the related spot commodity that would likely have a significant effect on prices.
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UK MAR: When can client-conveyed information be inside information? convey [order, message, news, regards, thanks, congratulations, condolences] - przekazywać Lernen beginnen
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When a client conveys precise, non-public, price-sensitive information about pending orders in financial instruments. Example: auctioned products based on the emission allowances.
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Inside source person examples: Lernen beginnen
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director; external auditor, employee's spouse
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Regulatory Information Service To utilize in case of Public Disclosure of Inside Information.
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List of all persons who have access to inside information. As separate insider lists are required for each transaction and one for permanent insiders.
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Unlawful Disclosure by UK MAR [informative ] Lernen beginnen
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The sharing of inside information with another person, unless the disclosure is part of the "normal exercise of an employment, a profession, or duties".
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Permitted disclosure includes: | Normal duties, | Market soundings*, | Confidentiality**, | Professional advice and... for example, to raise capital. Lernen beginnen
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*Is made to facilitate for a takeover bid under the Takeover Code. | **Requirements to facilitate a transaction, seek advice, or fulfil a legal obligation.
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Act which sets out legislation for Insider Dealing: (Act) Lernen beginnen
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Criminal Justice Act 1993 (CJA)
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Section 52 of the CJA outlines three ways of committing the insider trading: | Dealing in the security. | Encouraging another to do so and... Criminal Justice Act 1993 (CJA) Lernen beginnen
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Disclosing inside information to another.
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Inside information relates to securities traded on: Nasdaq, SIX Swiss Exchange and... Lernen beginnen
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New York Stock Exchange (NYSE)
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Inside information relates to securities traded on: UK, EEA, or Gibraltar Regulated Market, MTF* or... *Multilateral Trading Facility, eg. Turquoise (trading platform) Lernen beginnen
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Organised Trading Facility (OTF) eg. Tradeweb (trading platform)
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CJA covers tens of assets, eg. [informative ] Criminal Justice Act 1993 Lernen beginnen
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Interest rates or yields, emission allowances, emission allowances, freight rates or inflation rates.
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Asset which is NOT cover by Criminal Justice Act 1993? Lernen beginnen
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Wholesale energy products traded that must be physically settled.
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Market Manipulation examples, providing false data affecting Lernen beginnen
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Benchmark, | Price, | Media news BPM
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Example of behaviour to be considered as market manipulation is conduct to... Lernen beginnen
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to secure a dominant position for a financial instrument. also: The buying or selling of financial instruments, at the opening or closing of the market. | Manipulation of electronic means (eg, be cancellation or high-frequency trading strategies)
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What is a Market Sounding Lernen beginnen
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It'd where an adviser undertakes discussions with clients to determine their appetite for a new issuance, on behalf of an issuer. To assess the expected return and potential size of the new issue.
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Market Soundings. The disclosing firm has to comply with multiple obligations, for example... Lernen beginnen
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Obtain the consent of the person receiving the market sounding to receive inside information. also: Inform the person receiving the market sounding that they are prohibited from using that information information, by trading or cancelling orders for financial instruments.
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Defences for the offence of insider dealing: | not expect to result in a profit, | believed that the information had been widely disclosed or... Lernen beginnen
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would have acted in the same way regardless of being in possession of the information. A defence for the offence of disclosing only: the defendant did not expect any person to deal,
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Price Stabilisation is an activity of... Lernen beginnen
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... supporting the price of a new issue of securities in order to minimise the volatility that can sometimes arise with new issues.
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Market manipulation. Special Defences are designed for... Lernen beginnen
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In relation to: ... to market information and to price stabilisation activities,
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Market manipulation. Special Defences. An example is when the information was market information arising directly... Lernen beginnen
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... out of the negotiations. in connection with an acquisition or disposal
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The price stabilising rules allow stabilising managers to... Lernen beginnen
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... to support the price of new issues of securities by buying the securities in the secondary market for a limited time after their issue.
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Insider dealing. Legitimate Behaviour example: Certain behaviour that is considered legitimate, and as such will not constitute an offence. Lernen beginnen
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also: executing orders on behalf of third parties. |Internal arrangements referred as "information barriers".
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