MAD and MADder

With fast-developing technology, weak sanctions and powers, as well as uneven implementation across Europe enfeebling the Market Abuse Directive (MAD), proposals for an updated directive and a regulation with direct application in member states represent a fresh offensive to create better protected financial markets. Charlotte Hill and Victoria Silver ask if the new measures represent a crackdown or a wind-up?

To contact Charlotte Hill, Noline Matemera and Victoria Silver in the financial services and regulation group at law firm Stephenson Harwood, email charlotte. hill@shlegal.com, noline.matemera@shlegal.com and victoria. silver@shlegal.com.

Globalisation has fuelled the growth of our financial markets and over recent years these markets have become increasingly complex and diverse. However, regulation of these markets is often outpaced by technologies, which facilitate new trading platforms but also create opportunities for those who would engage in market abuse. As a result, the current market abuse regime, under the Market Abuse Directive (MAD), introduced in 2003, is out of date and can no longer effectively protect today’s financial markets.