Related provisions for MAR 1.2.9
1 - 3 of 3 items.
The following behaviours are, in the opinion of the
FCA
, market abuse (insider dealing):(1) dealing on the basis of inside information which is not trading information; (2) front running/pre-positioning - that is, a transaction for a person's own benefit, on the basis of and ahead of an order (including an order relating to a bid)4 which he is to carry out with or for another (in respect of which information concerning the order is inside information), which
In the opinion of the
FCA
, the following factors are to be taken into account in determining whether or not a person's behaviour is dutiful execution of an order (including an order relating to a bid)41 on behalf of another, and are indications that it is:(1) whether the person has complied with the applicable provisions of
COBS2
, or their equivalents in the relevant jurisdiction; or2(2) whether the person has agreed with its client
Behaviour, based on inside information relating to another company, in the context of a public takeover bid or merger for the purpose of gaining control of that company or proposing a merger with that company, does not of itself amount to market abuse (insider dealing) [Note: see Recital 29 Market Abuse Directive], including:(1) seeking from holders of securities, issued by the target, irrevocable undertakings or expressions of support to accept an offer to acquire those securities
The following examples of market abuse (insider dealing) concern the definition of inside information relating to financial instruments other than
commodity derivatives.(1) X, a director at B PLC has lunch with a friend, Y. X tells Y that his company has received a takeover offer that is at a premium to the current share price at which it is trading. Y enters into a spread bet priced or valued by reference to the share price of B PLC based on his expectation that
The following example of market abuse (insider dealing) concerns the definition of inside information relating to commodity derivatives.Before the official publication of LME stock levels, a metals trader learns (from an insider) that there has been a significant decrease in the level of LME aluminium stocks. This information is routinely made available to users of that
prescribed market
. The trader buys a substantial number of futures in that metal on
The following example of market abuse (insider dealing)concerns the definition of inside information relating to pending client orders.A dealer on the trading desk of a firm dealing in oil derivatives accepts a very large order from a client to acquire a long position in oil futures deliverable in a particular month. Before executing the order, the dealer trades for the firm and on his personal account by taking a long position in those oil futures, based on the expectation that
The following connected examples of market abuse (insider dealing) concerns the differences in the definition of inside information for commodity derivatives and for other financial instruments.(1) A person deals, on a
prescribed market
, in the equities of XYZ plc, a commodity producer, based on inside information concerning that company. (2) A person deals, in a commodity futures contract traded on a
prescribed market
, based
In the opinion of the
FCA
, the following factors are to be taken into account in determining whether or not a person could reasonably be expected to know that information in his possession is inside information and therefore whether he is an insider under section 118B(e) of the Act, and indicate that the person is an insider:(1) if a normal and reasonable person in the position of the person who has inside information would know or should have known that
The following are examples of
behaviour
that might fall within the scope of section 123(1)(b) :(1) a director of a company, while in possession of inside information, instructs an employee of that company to
deal in qualifying investments or related investments in respect of which the information is inside information;(2) a person recommends or advises a friend to engage in
behaviour
which, if he himself engaged
The following are examples 4of market abuse (improper disclosure).444(1) 4X, a director at B PLC has lunch with a friend, Y, who has no connection with B PLC or its advisers. X tells Y that his company has received a takeover offer that is at a premium to the current share price at which it is trading.(2) 4A, a person discharging managerial responsibilities in B PLC, asks C, a broker, to sell some or all of As shares in B PLC. C discloses to a potential buyer that A is a person