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Market abuse

In economics and finance, market abuse may arise in circumstances in which investors in a financial market have been unreasonably disadvantaged, directly or indirectly, by others who: have used information which is not publicly available (insider dealing)have distorted the price-setting mechanism of financial instrumentshave disseminated false or misleading information (market manipulation)Market abuse is split into two different aspects (under EU definitions): Insider dealing: where a person who has information not available to other investors (for example, a director with knowledge of a takeover bid) makes use of that information for personal gainMarket manipulation: where a person knowingly gives out false or misleading information (for instance, about a company's financial circumstances) in order to influence the price of a share for personal gainIn 2013/2014, the EU updated its legislation on market abuse, and harmonised criminal sanctions.

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