PA’s David Biggin, a financial services regulation expert, is quoted in an article in Global Risk Regulator which looks at data requirements and subsequent legal and regulatory challenges.
The article explains that the market abuse regime (MAR) is now in force in the EU and it has brought with it some heavy data and conduct requirements which is potentially leaving some participants struggling to comply.
The article goes on to say that MAR is changing how market participants interact with each other. David explains: “On the conduct side you’ll have to avoid undisclosed market soundings, so this might mean slightly different conversations with people in the market and a more formal process to avoid conflicts of interest over inside information.”
David talks about an example of a stockbroker placing a large block of shares on behalf of a client having to be very careful when contacting individual fund managers to sound out liquidity and investor appetite.
“They’ll have to make sure they don’t divulge what could be construed as ‘insider’ information without explicit prior agreement, which could give a fund manager an advantage over the rest of the market,” says David.