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New Market Abuse Directive (MAD 2) and Market Abuse Regulation (MAR) Compliance Training Course

23rd May 2016, London
25th May 2016, Frankfurt
27th May 2016, Zurich

3 Days 3 Cities

The new EU market abuse framework set to come into force on 3 July 2016 will usher in comprehensive Pan-European reforms of market abuse regulation, necessitating sweeping changes to financial services firms’ operations and practices

The Training Course

This training course will provide attendees with a comprehensive instruction on the new European Union (EU) market abuse regulatory framework governed by the European Securities and Markets Authority (ESMA). It will train attendees on the legal obligations and operational framework for the new Market Abuse Directive (MAD 2) (Directive 2014/57/EU) and Market Abuse Regulation (MAR) (Regulation No 596/2014). The course will guide attendees through new obligations for trading venues (Multilateral Trading Facility (MTF), Organised Trading Facility (OTF), Emissions Allowances), issuers, financial services firms, and persons discharging managerial responsibilities(PDMRs). Attendees will obtain training on monitoring, detecting, and identifying suspicious orders and transactions under the new MAD 2 and MAR operational framework, and will also be guided through the new Buy-Back Programmes, Stabilisation Measures, Accepted Market Practices and Market Soundings provisions. 

MAR Training Requirements

Article 4(1) of the new MAR 'draft regulatory technical standards on the appropriate arrangements, systems and procedures as well as notification templates to be used for preventing, detecting and reporting abusive practices or suspicious orders or transactions' requires that "Persons professionally arranging or executing transactions, market operators and investment firms operating a trading venue shall organise and provide effective and comprehensive training to the staff involved in the monitoring, detection and identification of suspicious orders and transactions, including the staff involved in the processing of orders and transactions. Such training shall take place on a regular basis and shall be appropriate and proportionate to the scale, size and nature of their business." Article 4(2) states that this training must also be provided by market operators and investment firms operating a trading venue to staff involved in the prevention of insider dealing, market manipulation and attempts of insider dealing and market manipulation.

Training Course Programme

SESSION 1: The MAD 2 (Directive 2014/57/EU) and MAR (Regulation No 596/201 4) Operational Framework

  • MAD 2 FRAMEWORK: (1) new minimum rules for criminal sanctions and criminal penalties and liability for natural and legal persons; (2) new obligations for trading venues (Multilateral Trading Facilities (MTFs), Organised Trading Facilities (OTFs), Emissions Allowances) and issuers; and (3) application to spot commodity contracts and transactions; and (4) benchmark manipulation.
  • MAR FRAMEWORK: (1) New financial instruments covered; (2) obligations and offences (issuer disclosure of inside information; market soundings; transactions by persons discharging managerial responsibilities; suspicious transactions reporting; algorithmic and high-frequency trading); and (3) New whistleblowing obligations, reporting, protections, and financial incentives.

SESSION 2: MAR OPERATIONAL PRACTICES I: Suspicious Transaction and Order Reports (STORs), Buy-Back Programme (BBP), and Stabilisation Measures

  • STOR FRAMEWORK: (1) STOR content; (2) reasonably suspicious orders (RSOs) (detection, level of suspicion, personnel training; cancellation and modification of orders); (3) Level II Regulatory Technical Standards (RTS) obligations (general requirements, prevention, monitoring, detection, training, reporting, timing, content, templates).
  • BBP AND STABLISATION FRAMEWORK: (1) BBP exemption (trading in own shares); (2) qualifying operational conditions (disclosure, reporting, limits); (3) qualifying programme conditions; (4) Stabilisation of securities exemption; (5) qualifying operational conditions (duration, disclosure and notification, price limits); (6) BBP and stabilisation measures Level II RTS compliance.

SESSION 3: MAR OPERATIONAL PRACTICES II: Accepted Market Practices (AMP) and Market Soundings (MS)

  • AMP FRAMEWORK: (1) Establishing legitimate reasons and conforming with accepted market practice: (2) AMP Competent authority criteria (transparency, safeguards, market liquidity and efficiency, trading mechanism, integrity of related markets, investigations, market structural characteristics); (3) AMP Level II RTS compliance; (4) Competent authority reviews.
  • MS FRAMEWORK: (1) MS operational framework (MAR, Article 11); (2) Procedural conditions and obligations for market participants (written records, consent, obligations to inform); (3) ESMA MS Guidelines; (4) Level II RTS and Implementing Technical Standards (ITS) on appropriate arrangements, procedures and record keeping requirements.

SESSION 4: MAD 2 and MAR Compliance Programmes

  • COMPLIANCE: (1) MAD 2 and MAR compliance programmes; and (2) modification of existing Information Technology (IT) infrastructures.
  • NEW EXEMPTIONS: (1) trading in own shares in buy-back programs; (2) trading in securities for the stabilization of securities exception and eligibility conditions; (3) public authorities in pursuit of monetary, exchange rate, or public debt management policy; (4) EU Agricultural Policy and Climate Policy; (5) Chinese Walls.
  • NEW POWERS AND SANCTIONS: (1) Minimum Supervisory and Investigatory Powers (document and data access; interviews; dawn raids, inspections, recordings, data traffic, telecommunications operators, temporary prohibitions); (2) Administrative Sanctions and Measures; (3) Financial Penalties (individuals, companies).
Session 1 Supporting Notes
Presented by Rodrigo Zepeda the Co-Founder of Storm-7 Consulting and the author of “The ISDA Master Agreement 2012: A Missed Opportunity?” and “Optimizing Risk Allocation for CCPs under the European Market Infrastructure Regulation”

Key Benefits

  • Advanced knowledge and understanding of key operational areas and compliance functions affected by MAD 2 and MAR (substantive obligations, sanctions, offences, STOR, accepted market practices, market soundings)
  • Comprehensive training course presentations and documentation and training course materials
  • Pre-Course Questionnaire to identify attendee's key objectives
  • Post-Course Expert Trainer follow-up to ensure all key Training Course objectives have been met
  • The Training Course can contribute to an individual's annual CPD requirements

Course Suitable For

  • Analysts
  • Compliance Officers and Managers
  • Dealers
  • Directors
  • Emission Allowance Market Participants
  • Financial Services Firms
  • Fund Managers
  • Heads of Risk and Operations
  • In-House Legal Counsel
  • Issuers
  • OTFs; MTFs; Regulated Stock Exchanges
  • Risk Officers and Managers
  • Senior Managers
  • Trading Platforms