EU Energy Policy

Confusion reigns over Market Abuse Regulation

The EU wants to clamp down on market manipulation by strengthening the framework of the Market Abuse Directive, but the Parliament’s latest amendments to the proposed Regulation has raised many questions amongst stakeholders in the energy industry The EU wants to clamp down on market manipulation by strengthening the framework of the Market Abuse Directive, but the Parliament’s latest amendments to the proposed Regulation has raised many questions amongst stakeholders in the energy industry.
By Andreas Walstad 11 April 2012 0 9030
The existing Market Abuse Directive was introduced back in 2003 to combat trading on the back of insider information in regulated markets, such as exchange-based trading. (Microsoft)

The existing Market Abuse Directive (MAD) was introduced in 2003 to combat trading in regulated markets. However, in the wake of the financial crisis, the European Union has seen it as necessary to strengthen the framework of MAD, and wants it to also include non-regulated markets such as over-the-counter (OTC) or bilateral trading.

The increase in trading across different venues – including OTC – has made it more difficult to monitor market abuse, according to the European Commission. This is why it has proposed replacing MAD...