The Market Abuse Regulation (MAR)

The Market Abuse Regulation (MAR): Technology for Meeting Market Abuse Regulation Challenges

Market abuse generally comprises of an unfair advantage in trading due to insider information, the exploitation of a dominant market position, or the manipulation of market prices. However, the extent to which the terms of abuse applies to the energy market poses complex issues for market players.

The EU Market Abuse Regulation (MAR), which came into force in July 2016, is a new EU-wide regime intended to harmonise measures addressing market distortion arising from regulatory arbitrage.

The regulation replaces the previous Market Abuse Directive (MAD), strengthening the earlier regime by extending its scope to new markets and redefining the terms of market abuse, including attempted manipulation. In this podcast, Yasmine Li and Shane Henley, from Baringa Partners, outline the key aspects of the regulation and the challenges of compliance obligations for energy players in the wholesale markets, while also considering the opportunities technology offers in tracking potential market abuse, namely a transaction surveillance capability.

Accompanying slides are available here

Further podcasts in the series can be found here