Part A Annotated Guide, 3 The Concept of Market Manipulation
Edited By: Marco Ventoruzzo, Sebastian Mock
- Capital markets — Insider dealing — Insider trading — Market abuse — Market Abuse Directive (MAD) — Regulated activities
This chapter discusses the concept of market manipulation. In contrast to the prohibition of insider dealing, market manipulation is not a single act or set of different behaviours but more of a multi-layer phenomenon covering all kinds of behaviours generally not accepted in any market. In capital markets law, four different forms of market manipulation developed, which can also be found in the Market Abuse Regulation (and other European regulations). These are information-based manipulation, transaction-based manipulation, short selling, and other forms of manipulation. However, the Market Abuse Regulation does not refer expressly to each of these forms of market manipulation but defines market manipulation in its Article 12 in general.