What is Market Abuse Regulation (MAR)?
Market Abuse Regulation (MAR) replaces the Market Abuse Directive (MAD) and was enacted in the European Union (EU) as of July 3, 2016. It stands as a robust regulatory framework. Designed to enhance financial market transparency and integrity, MAR addresses key components, such as insider dealing, market manipulation, market soundings, and the disclosure of inside information. As financial markets evolve, MAR adapts to emerging challenges, emphasizing its commitment to maintaining fair and efficient markets.
Key Components of Market Abuse Regulation:
Insider dealing involves trading financial instruments based on non-public information, prohibited under MAR to safeguard market integrity. Companies are required to establish robust internal controls to prevent and detect insider dealing.
Market manipulation encompasses activities intended to distort market prices, such as spreading false information. MAR addresses market manipulation through strict prohibitions and reporting requirements.
Market soundings involve the information communication before a financial transaction to assess investor interest, with MAR introducing guidelines for transparency and to prevent insider trading.
Disclosure of inside information mandates the timely disclosure of material information impacting market prices, requiring companies to promptly communicate inside information to the public.
Regulatory Objectives of Market Abuse Regulation:
1. Enhancing Market Integrity:
- Aims to maintain trust by preventing abusive practices
- Establishes a level playing field for all market participants, fostering fair competition
2. Protecting Investors:
- Increases transparency and reduces market manipulation risks
- Safeguards investor confidence by promoting a fair and secure trading environment
3. Ensuring Efficient Price Formation:
- Addresses market abuse to contribute to accurate price discovery
- Supports effective capital allocation and economic growth
With NICE Actimize’s Markets Surveillance solution, you can meet regulatory obligations, efficiently meet your regulatory requirements and demonstrate predictive, preventative compliance to regulators, clients and investors.
How does NICE Actimize help?
Comprehensive Markets Surveillance Compliance Monitoring
Broad, consistent global coverage via standard models for equities, fixed income, foreign exchange, swaps, futures and options.
Best in Class Markets Surveillance Analytics
Out-of-the-box detection scenarios provide superior analytics that have been vetted by top tier global clients, industry professionals, and our team of seasoned subject matter experts. NICE Actimize has more than 12 years’ experience implementing OTC instrument Markets Surveillance, including foreign exchange and swaps/OTC.
The Markets Surveillance solution incorporates NICE Actimize Risk Case Manager (ActOne), a fully integrated, web-based case manager for efficient alert management, ad hoc investigation, and audit trail functionality. Improve organizational communication and minimize redundant efforts, while meeting regulatory books and records obligations.
Advanced Market Visualization
Effectively identify false positives and detect trading abuse by displaying alerts together with market activity and firm transactions.
NICE Actimize empowers firms to navigate the complexities of MAR with confidence. Leveraging advanced surveillance tools, comprehensive compliance management, and continuous regulatory updates, NICE Actimize enables FIs to stay ahead in the ever-changing regulatory landscape, fostering trust, transparency, and integrity in financial markets.