This category contains 63 posts

FCA warns of increased MAR oversight

The start of MiFID II on 3rd January increases the scope of the Market Abuse Regulation, which itself started on 3rd July 2016 (see here). Financial instruments executed on Organised Trading Facilities (OTF) as well as emissions allowances will be in scope. As a result the requirements of an Emissions Allowance Market Participant (EAMP) increase … Continue reading

Manipulation cases

The global financial, commodity and energy markets have seen increased scrutiny from regulators over the last few months, particularly in terms of anti manipulation activity.  In Europe, rule sets such as MAR and REMIT are starting to bite, which is causing market participants to increase anti abuse measures. This rise in diligence is also being … Continue reading

Updated MAR Q+A issued by ESMA

ESMA has released an updated Questions and Answers document on the Market Abuse Regulation, which can be found here. The document contains several updates, including an update to the clarification on who is a “Professional Person Arranging and Executing Transactions” (PPAET), which is covered by question 6.1 on page 11. The updated answer makes clear … Continue reading

Manipulation cases and surveillance system settings

See here for an article on the Trillium web site, which reports on a fine imposed on JP Morgan Securities in the US  for the use of  improper configuration settings on their surveillance systems. The ruling can be found here. The story is also mentioned here on the Broadpeak blog, which also mentions the issue of … Continue reading

Spoofing conviction upheld on appeal

The US appeals court has upheld the conviction of Michael Coscia who was found guilty of market manipulation, receiving a custodial sentence last year (see here). An article on the appeal outcome can be found here on the Reuters web site. The conviction was for engaging in “spoofing” and “layering” in the commodity derivatives markets in … Continue reading

Anti abuse activity by the FCA, FERC and others

The FCA has released their annual report which can be found here. Included within it are sections on the application of anti abuse measures such as MAR. Examples include a section on market abuse on page 58 and others. The accompanying enforcement report (see here) also contains relevant cases and statistics. This article on the … Continue reading

ACER issues guidance on wash trades

ACER yesterday issued this guidance note which provides a detailed examination of scenarios that are considered to be “wash trades” and therefore illegal under REMIT. The document looks at different scenarios which are considered wash trades, spanning one or more parties, thus also covering “pre-arranged trading” and “circular trading”. It provides guidance as to when … Continue reading

Article on the paradox of scarcity pricing

See here for an article on the EurActiv web site on scarcity pricing. The article examines the paradox which sees that on the one hand, one of the “selling points” which make investment in intermittent renewables attractive is that returns can be achieved during a scarcity pricing period. On the other hand, price spikes in … Continue reading

ESMA issue ITS on cooperation of NCAs for MAR

ESMA has issued this Implementing Technical Standard which specifies how National Competent Authorities are to cooperate when pursuing MAR cases, which includes exchanging of data and cross border investigations. The relevant press release can be found here. Last week, ESMA released a updated Questions and Answers document on MAR (see here) and also announced the … Continue reading

Updated MAR Q+A

ESMA has released an updated version of the MAR Questions and Answers document, which can be found here. Question 4.1 page 9 looks at the issue of a blanket order cancellation without discretion can constitute insider trading. There has also been a communication around the submission of reference data under MAR, which will use the … Continue reading