On July 3, 2016, the European Union’s Market Abuse Regulation (MAR) will replace the EU’s Market Abuse Directive (MAD). The directive on criminal sanctions for insider dealing and market manipulation (CSMAD) will be implemented in parallel with MAR and MAD. The CSMAD will introduce mandatory criminal sanctions for those found guilty of market abuse and insider dealing across most of the European Union (with the exception of Denmark and the United Kingdom, where independent legislative efforts are also pending to increase existing criminal penalties).
Any persons anywhere in the world who trade on EU markets or in derivatives and other instruments whose price or value is referable to those instruments trading on EU markets, should be aware of these impending changes, even if they never entered Europe and even if the trades do not take place on the relevant European exchange. All such firms should ensure that their compliance policies and procedures are updated accordingly.
For more information, please refer to the Katten client briefing here.