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. Subsequent Level 2 consultations are expected to be conducted by ESMA during the course of of 2014.
MAD II / MAR
Regulation (EU) No 596/2014 on market abuse (June 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)