Published in 2003, the EU Market Abuse Directive (MAD) sought to implement an EU-wide market abuse regime. But since the implementation of that directive, the increasingly global nature of financial markets and the development of new trading platforms meant that MAD was soon outdated.
So therefore due to those issues and the manipulation of certain benchmarks such as LIBOR (London Interbank Offered Rate) it was decided during a scheduled review that the development of a new legislation was required.
In 2014 the Market Abuse Regulation (MAR) and the Directive on Criminal Sanctions for Market Abuse (CSMAD and, together with MAR, MAD II) were published in the Official Journal. MAR went live on the 3rd July 2016.
MAR seeks to enhance and harmonise the EU regime on market abuse. It increases the scope of existing offences and has introduced new offences such as attempted insider dealing, manipulation of benchmarks and commodities and has enhanced requirements on firms operating in the EU financial markets. MAR applies directly in each EU member state without requiring states to produce laws that implement MAR's provisions. CSMAD requires each Member State to implement legislation to ensure that market abuse is a criminal offence which can be effectively punished. Together, MAD II seeks to improve confidence in the integrity of the European financial markets.