Market Abuse Regulation

Applicable from 3 July 2016

The new Market Abuse Regime, which consists of:

• the Market Abuse Regulation (EU 596/2014 - ‘MAR’) and
• the Market Abuse Directive on criminal sanctions for market abuse (Directive 2014/57/EU or 'CSMAD' or ‘MAD II’) became applicable in Ireland and across the European Union on 3 July 2016.

The new regime replaces the previous Market Abuse Directive (2003/6/EC).

CSMAD and elements of MAR including delegated acts were transposed into Irish law by way of the European Union (Market Abuse) Regulations 2016 (S.I. 349 of 2016) (‘2016 Regulations’). The 2016 Regulations replaces the previous Market Abuse (Directive 2003/6/EC) Regulations 2005 (S.I. 342 of 2005).

The introduction of MAR and CSMAD forms part of the European regulatory reform agenda for financial services, aimed at ensuring greater transparency and market integrity.

• The new Market Abuse Regime strengthens the legal framework underpinning the function of detecting, sanctioning and deterring market abuse. It extends its scope to apply to new markets, new trading platforms and new behaviours and to cover a broader range of financial instruments. It contains prohibitions for insider dealing, market manipulation and unlawful disclosure of inside information and provisions to prevent and detect these.
• MAR introduces a number of changes including:

• A broadening of the scope of legislation to include trading platforms, such as Multilateral Trading Facilities (MTFs), and Over the Counter (OTC) trades, including in derivatives.
• Additional notification requirements in relation to suspicious activity, delay in the disclosure of inside information, managers' transactions and
• Enhanced requirements regarding the preparation and maintenance of insider lists and the handling of inside information.

The Market Abuse Directive introduces:

• Minimum rules for criminal sanctions for market abuse, and
• Wider range of activities which constitute an offence, to include, for example, inciting, aiding and abetting the commission of certain market abuse offences.MAR Industry Communication - July 2021

Market Abuse Review Findings – October 2026

A Central Bank of Ireland inspection on the obligations of Irish-based individuals and firms involved in the issuance of securities has shown generally good levels of compliance with regulatory requirements in the areas examined, reflecting the importance of a robust framework and adherence to the rules in maintaining market integrity.

The inspection examined issuers compliance with the Market Abuse Regulation (MAR), in particular Article 19 which imposes requirements on issuers, persons discharging managerial responsibilities (PDMR) and persons closely associated (PCA) with them. Article 19 of MAR is intended to increase transparency in the market around PDMR and PCA transactions in order to provide valuable information to investors and as a measure to prevent market abuse.

The Central Bank published the main findings of the inspection which included a range of good practices and examples of positive risk management cultures across the selected issuers.

The inspection also found varying levels of maturity and effectiveness in the governance and oversight arrangements in some firms, in addition to examples of deficiencies in issuer policies and procedures and record keeping requirements relating to PDMR and PCA lists. The letter issued to firms sets out the Central Bank’s expectations and notes that issuers should aim to ensure their control frameworks are effective and properly implemented, ensure PDMRs are periodically reminded of their obligations, and continue to ensure the timely and accurate disclosure of PDMR transactions.

MAR Industry Communication - July 2023

The Central Bank carried out a Market Abuse Thematic Review in 2022 to assess the measures established and implemented by Trading Venues to ensure that they meet their obligations to prevent, monitor, detect, identify and report to the Central Bank potential or actual instances of market abuse, as required by Article 16.1 of the Market Abuse Regulation (“MAR”).

This review followed a Market Abuse Thematic inspection for Trade Surveillance and reporting of suspected market abuse in 2020 which led to a related Dear CEO letter, issued in 2021.

The following letter is being issued for related market participants regarding the findings from the 2022 Market Abuse Thematic Review”.

MAR Industry Communication - July 2021

MAR applies to a broad range of market participants all of whom play a role in maintaining market transparency and integrity. The Central Bank has issued three industry letters to relevant market participants 1. Persons who transmit or execute orders, 2. Issuers and 3. Persons who act on behalf or on account of issuers (Advisors). Each letter provides an overview of the key findings from the Central Banks's 2020 market abuse supervisory work. It also sets out the Central Bank expectations in relation to MAR compliance standards (building on our 2021 industry communications, including Securities Markets Risk Outlook Report). View press release Central Bank publishes findings of review into market abuse risks.

Regulated Entities - MAR Requirements to Trade Surveillance and Reporting of Suspected Market Abuse

Issuers - MAR Requirements to Recognise, Publish and Management Inside Information

Advisors - MAR Implications for Advisors to Issuers