The European Market Abuse Directive: Has it Worked?

2016 ◽  
Vol 28 (1) ◽  
pp. 27-69 ◽  
Author(s):  
Khurram Shahzad ◽  
Gerard Mertens
Keyword(s):  
European Market ◽  
Market Abuse ◽  
Market Abuse Directive

Dealing with Corporate Scandal under European Market Abuse Law: The Case of VW

2019 ◽  
Vol 16 (4) ◽  
pp. 484-534
Author(s):  
Mario Hössl-Neumann ◽  
Andreas Baumgartner
Keyword(s):  
Member State ◽  
European Market ◽  
Market Abuse ◽  
Corporate Scandal ◽  
Optimal Functioning ◽  
Corporation Law ◽  
German Stock ◽  
Outer Bounds ◽  
Stock Corporation ◽  
Market Abuse Directive

This paper uses the current proceedings against Volkswagen Aktiengesellschaft for violations of its continuous disclosure obligation as a backdrop for addressing fundamental questions of European market abuse law. Specifically, we ask how the Market Abuse Directive and Regulation (MAD/R) and Member State corporate law together shape management’s disclosure policy vis-à-vis the stock market. Taking the perspective of German stock corporation law, our main findings are twofold: First, while European market abuse law severely limits management’s discretion when market integrity is at stake, Member States can still largely control its influence on internal corporate governance – i.e., on the distribution of information between management and shareholders. Second, MAD and MAR directly draw on conceptions of public interest in Member State law when determining the outer bounds of issuers’ ability to delay disclosure, thereby potentially promoting compliance. Based on these insights, the paper then closes with a note of caution for national legislators and suggests a more profound discussion of their responsibility for the optimal functioning of European market abuse law.

A historical overview of the general implementation of the European Union Market Abuse Directive in the United Kingdom before Brexit and its future implications

2017 ◽  
Vol 24 (2) ◽  
pp. 217-244
Author(s):  
Howard Chitimira
Keyword(s):  
European Union ◽  
United Kingdom ◽  
Insider Trading ◽  
The European Union ◽  
Member States ◽  
Market Abuse ◽  
The United Kingdom ◽  
Insider Dealing ◽  
The Eu ◽  
Market Abuse Directive

The European Union (EU) was arguably the first body to establish multinational anti-market abuse laws aimed at enhancing the detection and curbing of cross-border market abuse activities in its Member States. Put differently, the EU Insider Dealing Directive was adopted in 1989 and was the first law that harmonized the insider trading ban among the EU Member States. Thereafter, the European Union Directive on Insider Dealing and Market Manipulation (EU Market Abuse Directive) was adopted in a bid to improve and effectively discourage all forms of market abuse in the EU’s securities and financial markets. However, the EU Market Abuse Directive had its own gaps and flaws. In light of this, the Market Abuse Regulation and the Criminal Sanctions for Market Abuse Directive were enacted to repeal and replace the EU Market Abuse Directive in 2016. The article examines the adequacy of the EU Market Abuse Directive and its implementation in the United Kingdom (UK) prior to the UK’s vote to leave the European Union (Brexit). This is done to investigate the possible implications of the Brexit referendum outcome of 23 June 2016 on the future regulation of market abuse in the UK.

Part A Annotated Guide, 6 Private Enforcement of the Market Abuse Regulation in European Law

2017 ◽  
Author(s):  
Busch Danny
Keyword(s):  
Administrative Law ◽  
Public Law ◽  
Private Enforcement ◽  
Private Law ◽  
European Law ◽  
Legal Systems ◽  
Market Abuse ◽  
Annotated Guide ◽  
Market Abuse Directive

This chapter discusses the role of the Market Abuse Regulation in private law. An infringement of the MAR has an important effect on the private law relations between the infringer and the investing public. As regulatory provisions of this nature are classified as public law, any failure to comply with the MAR will also affect the infringer’s relationship with the competent financial supervisor. In other words, the relevant financial supervisor can enforce these provisions under administrative law in the event of an infringement. This is essentially no different from the situation under of the Market Abuse Regulation’s predecessor—the (former) Market Abuse Directive (2003/6/EC), as implemented in the various national legal systems.

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