Selected Aspects of the Regulation of Insider Trading and Market Manipulation in the European Union and South Africa

2015 ◽  
Vol 8 (3-4) ◽  
pp. 183-208
Author(s):  
Howard Chitimira
Keyword(s):  
South Africa ◽  
European Union ◽  
Insider Trading ◽  
Global Market ◽  
Market Manipulation ◽  
The European Union ◽  
Market Abuse ◽  
Cross Border ◽  
Insider Dealing ◽  
European Union Member States

The increasingly global market has given rise to increased interaction and interdependence among national regulators as well as investors in different jurisdictions. However, this has brought several regulatory problems to the enforcement authorities particularly with regard to the detection, investigation and prosecution of cross-border market abuse activities in many jurisdictions, such as the European Union and South Africa. Consequently, the European Union became the first body to establish multinational market abuse laws in order to enhance the detection and combating of cross-border market abuse practices. The European Union Insider Dealing Directive was subsequently adopted in 1989 and was the first law that harmonised the insider trading ban among the European Union member states. Thereafter, the European Union Directive on Insider Dealing and Market Manipulation was adopted in a bid to increase the combating of all the forms of market abuse in the European Union’s securities and financial markets. Similar anti-market abuse regulatory efforts were also made in South Africa. In light of this, selected regulatory aspects of market abuse in the European Union and South Africa will be briefly and comparatively discussed in tandem. Thereafter, some concluding remarks will be provided.

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.

scholarly journals Main Initiatives of the European Union in Combating Market Abuse

2014 ◽  
pp. 244-252
Author(s):  
R. A. Kasyanov
Keyword(s):  
European Union ◽  
Systems Approach ◽  
Legal Regulation ◽  
Market Manipulation ◽  
The European Union ◽  
Market Abuse ◽  
Stage Of Development ◽  
Council Directive ◽  
Insider Dealing ◽  
The Eu

In the European Union combating insider violations and market manipulation is one of the key tasks in the domain of legal regulation of the finance market. The EU takes a systems approach to the solution of this problem, as the development of the legal regulation in this field goes the way of enhancing a respective complex of legal norms. In 7 989 the first stage of the development of the EU legal base in the area of combating insider violations was undertaken. In the mentioned year a Council Directive 89/592/EEC on insider dealing was adopted which created the basis for the legal regulation in this field. The document, despite its progressive nature for that time, soon became outdated and no longer could meet the demands of modern finance markets. In 2003 the European Union decided to enhance its legal base and adopted a new Directive 2003/6/ EC of the European Parliament and of the Council on insider dealing and market manipulation (market abuse). This secondary law act, which is still in force, has a much wider scope because its key notion "market abuse" comprises two forms of unlawful actions: insider dealing and market manipulation. In 20 7 7 drafts of new regulatory acts were elaborated - a regulation on insider dealing and market manipulation (market abuse) and a directive on criminal sanctions for insider dealing and market abuse. Should these acts be adopted, the third stage of development of the legal base in this area will begin. This article is aimed at analysing specific features of the second-stage development of the EU legal base and attempting to characterise the main directions of the upcoming reform.

scholarly journals The formation of interstate and cross-border scientific-educational and innovative spaces between Ukraine and the European Union member states in the digital economy

2019 ◽  
Vol 2 (2) ◽  
pp. 48-60 ◽  
Author(s):  
Viacheslav Lyashenko ◽  
Iryna Pidorycheva
Keyword(s):  
European Union ◽  
Union Member ◽  
Economic Benefits ◽  
High Tech ◽  
The European Union ◽  
Member States ◽  
Association Agreement ◽  
Cross Border ◽  
European Union Member States ◽  
The Eu

By signing the Association Agreement between the EU and Ukraine, Ukraine has demonstrated its intention and willingness to integrate into the system of formal institutions of the EU, to adopt the EU rules, norms, and practices, which will enable Ukraine to achieve significant economic benefits. One of those benefits is the opportunity to build a true scientific-educational and innovative partnership with the EU Member States within the European Research Area. This study considers opportunities and perspectives of creating an interstate and cross-border scientific-educational and innovative spaces between Ukraine as an associated country and the European Union Member States taking into account key priorities of the ERA and rapidly growing impact of digital technologies. Particular attention has been given to the establishment of a common Polish-Ukrainian scientific-educational space which could be complemented by the entrepreneurial component. The article has identified opportunities, existing prerequisites, directions, and priorities for building Polish-Ukrainian spaces. It has also defined the challenges of formation the European interstate and cross-border scientific-educational and innovative spaces as a whole. It has been suggested to develop hereinafter an interstate and cross-border high-tech clusters based on the interstate and cross-border scientific-educational and innovative spaces. The scheme and the main steps of formation a cross-border cluster of nano- and biotechnologies are proposed.

scholarly journals A Historical Overview of the Regulation of Market Abuse in South Africa

2017 ◽  
Vol 17 (3) ◽  
pp. 971
Author(s):  
Howard Chitimira
Keyword(s):  
South Africa ◽  
Financial Markets ◽  
South African ◽  
Insider Trading ◽  
Stock Exchanges ◽  
Market Manipulation ◽  
Historical Overview ◽  
The South ◽  
Market Abuse ◽  
Overview Analysis

In an early attempt to combat market abuse in the South African financial markets, legislation such as the Companies Act, the Financial Markets Control Act and the Stock Exchanges Control Act were enacted. However, these Acts failed to effectively curb market abuse activities that were allegedly rife in the financial markets. Consequently, the Insider Trading Act was enacted and came into effect on 17 January 1999. While the introduction of the Insider Trading Act brought some confidence in the financial markets, market abuse activities were still not extinguished. The provisions of the Insider Trading Act were to some extent inadequate and ineffectively implemented. Eventually, the Securities Services Act was enacted to repeal all the flawed provisions of the Insider Trading Act. Notwithstanding these efforts on the part of the legislature, more may still need to be done to increase the number of convictions and settlements in cases involving market abuse in South Africa. It is against this background that a historical overview analysis of the regulation of market abuse is carried out in this article to expose the flaws that were previously embedded in the South African market abuse laws prior to 2004. This is done to raise awareness of the situation on the part of the relevant stakeholders, as they consider whether such flaws were adequately resolved or subsequently re-introduced under the Securities Services Act and the Financial Markets Act. To this end, the article firstly discusses the historical development and regulation of market manipulation prior to 2004. Secondly, the regulation and enforcement of insider trading legislation prior to 2004 are examined. Moreover, where possible, certain flaws of the previous market abuse laws that were re-incorporated into the current South African market abuse legislation are isolated and recommendations are made in that regard.

scholarly journals A Comparative Synopsis of the Enforcement of Market Abuse Prohibition in Australia and South Africa

2016 ◽  
Vol 9 (1) ◽  
pp. 46-77
Author(s):  
Howard Chitimira
Keyword(s):  
South Africa ◽  
South African ◽  
Insider Trading ◽  
Regulatory Framework ◽  
Securities Markets ◽  
Market Manipulation ◽  
Market Abuse ◽  
The Government ◽  
Australian Experience

In Australia, the market abuse prohibition is generally well accepted by the investing and non-investing public as well as by the government. This co-operative and co-ordinated approach on the part of all the relevant stakeholders has to date given rise to an increased awareness and commendable combating of market abuse activities in the Australian corporations, companies and securities markets. It is against this background that this article seeks to explore the general enforcement approaches that are employed to combat market abuse (insider trading and market manipulation) activity in Australia. In relation to this, the role of selected enforcement authorities and possible enforcement methods which may be learnt from the Australian experience will be isolated where necessary for consideration in the South African market abuse regulatory framework.

International Legal Cooperation between Kosovo and Other States and Organizations

2018 ◽  
Vol 43 (3) ◽  
pp. 314-330
Author(s):  
Hajredin Kuçi
Keyword(s):  
European Union ◽  
Rule Of Law ◽  
International Organizations ◽  
Union Member ◽  
Ad Hoc ◽  
The European Union ◽  
The Rule Of Law ◽  
Cross Border ◽  
Post War ◽  
European Union Member States

Building a rule-of-law-based democracy is a challenge for post-communist and post-war societies. Rule of law is a priority for these societies and also one of the membership criteria required by international organizations, in particular the European Union. As such, an aspiring country like Kosovo has to face the challenge of building a legal system that is compatible with that of the European Union member states while also developing its legal cooperation with other countries. Through international legal cooperation, countries strengthen the fight against criminal actions that are punishable in all modern states and also exchange experience in combating cross-border crime, trafficking, corruption, terrorism, and other violations of criminal law. In this regard, Kosovo faces many challenges in the field of international legal cooperation, not only with regard to those missions operating in Kosovo itself (such as EULEX, UNMIK, etc.), but also with other international organizations, especially due to Kosovo’s lack of membership in them. Another challenge is cooperation with countries that have not yet recognized Kosovo as a state. This article emphasizes the efforts made by Kosovo’s institutions to engage in international legal cooperation as one of the prerequisites for building the rule of law at home. The main issues tackled in the article are how these problems are addressed in practice, which obstacles arise, what the ad hoc means are of engaging in international legal cooperation, and what the specificities and prospects are for Kosovo’s international legal cooperation. As such, the aim of the article is to examine some of the legal peculiarities and uncertainties that have been created over the years as the result of limitations on Kosovo’s international personality and to consider innovative means to ensure Kosovo’s legal cooperation with other countries.

scholarly journals OVERVIEW OF THE MARKET ABUSE REGULATION UNDER THE FINANCIAL MARKETS ACT 19 OF 2012

Obiter ◽  
2014 ◽  
Vol 35 (2) ◽  
Author(s):  
Howard Chitimira
Keyword(s):  
South Africa ◽  
Comparative Analysis ◽  
Financial Markets ◽  
Insider Trading ◽  
Market Manipulation ◽  
Market Abuse ◽  
Overview Analysis

This paper analyses the regulation of market abuse under the Financial Markets Act 19 of 2012 in order to investigate the adequacy of such regulation as regards to the combating of market-abuse practices in South Africa. To this end, the paper provides an overview analysis of the market abuse (insider trading and market manipulation) offences as well as the penalties and other anti-market abuse-enforcement approaches that are employed under the Financial Markets Act 19 of 2012 in a bid to provide a revamped and adequate anti-market abuse regulatory and -enforcement framework in South Africa. Moreover, where possible, the paper also provides a comparative analysis of these offences, penalties and other anti-market abuse-enforcement approaches and those that were provided under the Securities Services Act 36 of 2004. This is done to examine whether the anti-market abuse regulatory and -enforcement framework that was re-introduced under the Financial Markets Act 19 of 2012 has now adequately resolved the flaws and gaps that were associated with a similar framework under the former Act.

What Is Market Manipulation?

2018 ◽  
Vol 2 (2-4) ◽  
pp. 1-316
Author(s):  
Andri Fannar Bergþórsson
Keyword(s):  
European Union ◽  
Essential Element ◽  
Case Law ◽  
Nordic Countries ◽  
Market Manipulation ◽  
The European Union ◽  
Market Abuse

AbstractThe Market Abuse Regulation (MAR) entered into force in 2016 within the European Union, which introduced a fully harmonized ban on market manipulation. Even though the regulation is quite detailed, the terms used to define market manipulation are relatively vague and open-ended.In What Is Market Manipulation? Dr. Andri Fannar Bergþórsson offers unique insight to and an interpretation of the concept of market manipulation, which includes an analysis of case law from the Nordic countries. The aim of the book is to clarify the concept as described in MAR and to provide readers some guidelines to distinguish between lawful behaviour and market manipulation (the unlawful behaviour). Dr. Andri Fannar convincingly argues that misinformation is an essential element of all forms of market manipulation.

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