Alternative Investment Management Association Representing the global hedge fund industry
Until MAD, only insider dealing was covered by EU harmonised rules. MAD built upon these existing rules by introducing a common EU legal framework to combat both insider dealing and market manipulation and ensure appropriate administrative sanctions are applied when the rules are breached. It also established a common framework for the disclosure of information to the market.
On 20 October 2011, the European Commission adopted proposals for (i) a revised Directive dealing with criminal sanctions against market abuse (MADII) and (ii) a new Regulation dealing with administrative measures against such abuse (MAR). The two proposals sought to:
The European Parliament and Council voted through their versions of the Commission's MAR proposals on 8 October 2012 and 5 December 2012, respectively. Trialogue negotiations between all three EU legislative institutions commenced subsequently on 2 January 2013, with a political agreement for a Level 1 MAR text being reached on 20 June 2013. The European Parliament and Council approved their respective MADII texts on 8 October 2012 and 12 December 2012. A Trialogue agreement on a Level 1 MADII text was reached on 19 December 2013.
The Level 1 Texts of MAR and MADII were published in the Official Journal of the European Union on 12 June 2014. Each will enter into effect on 3 July 2016.
In November 2013, ESMA published a discussion paper on its policy orientations on possible Level 2 implementing measures for MAR. AIMA submitted a response. On 15 July 2014, ESMA published two consultation papes on MAR Level 2 measures: one covering draft regulatory technical standards and the other draft technical advice to the European Commission on possible delegated acts. The deadline for comments is 15 October 2014.
MAD II / MAR
Regulation (EU) No 596/2014 on market abuse (June 2014)
ESMA Consultation Paper on draft RTS under MAR (July 2014)
European Commission Impact Assessment MAD II (October 2011)
AIMA Summary of the Market Abuse Regulation Trialogue Position (September 2013)
AIMA Position Paper (February 2012)