• Part 8 Part 8 Market Abuse

    • Market Abuse

      • 92. Market abuse

        (1) For the purposes of these Regulations, Market Abuse is Behaviour (whether by one person alone or by two or more persons jointly or in concert) which —
        (a) occurs in relation to —
        (i) Financial Instruments admitted to trading on a —
        (A) Prescribed Market; or
        (B) a similar market or trading venue situated outside the Abu Dhabi Global Market and accessible electronically from within the Abu Dhabi Global Market;
        (ii) Financial Instruments in respect of which a request for admission to trading on such a market has been made;
        (iii) in the case of subsection (2) or (3) Behaviour, instruments which are Related Instruments in relation to such Financial Instruments; or
        (iv) an Accepted Crypto Asset admitted to trading on a Crypto Asset Exchange; and
        (b) falls within any one or more of the types of Behaviour set out in subsections (2) to (6).
        (2) The first type of Behaviour is where an Insider deals, or attempts to deal, in a Financial Instrument, Related Instrument or an Accepted Crypto Asset on the basis of Inside Information relating to the Financial Instruments, Related Instruments or Accepted Crypto Assets in question.
        (3) The second is where an Insider discloses Inside Information to another person otherwise than in the proper course of the exercise of his employment, profession or duties.
        (4) The third is where the Behaviour consists of effecting transactions or orders to trade (otherwise than for legitimate reasons and in conformity with Accepted Market Practices on the relevant market) which —
        (a) give, or are likely to give, a false or misleading impression as to the supply of, or demand for, or as to the price of, one or more Financial Instruments or Accepted Crypto Assets; or
        (b) secure the price of one or more such instruments at an abnormal or artificial level.
        (5) The fourth is where the Behaviour consists of effecting transactions or orders to trade which employ fictitious devices or any other form of deception or contrivance.
        (6) The fifth is where the Behaviour consists of the dissemination of information by any means which gives, or is likely to give, a false or misleading impression as to a Financial Instrument or an Accepted Crypto Asset by a person who knew or could reasonably be expected to have known that the information was false or misleading.
        Amended on June 25, 2018

      • 93. Supplementary provision about certain Behaviour

        (1) Behaviour is to be taken into account for the purposes of this Part only if it occurs —
        (a) in the Abu Dhabi Global Market; or
        (b) in relation to —
        (i) Financial Instruments which are admitted to trading on a Prescribed Market situated in, or operating in, the Abu Dhabi Global Market;
        (ii) Financial Instruments for which a request for admission to trading on such a Prescribed Market has been made; or
        (iii) Accepted Crypto Assets admitted to trading on a Crypto Asset Exchange.
        (2) For the purposes of section 92(6), the dissemination of information by a person acting in the capacity of a journalist is to be assessed taking into account the codes governing his profession unless he derives, directly or indirectly, any advantage or profits from the dissemination of the information.
        (3) Behaviour does not amount to Market Abuse for the purposes of these Regulations if —
        (a) it conforms with a Rule which includes a provision to the effect that Behaviour conforming with the Rule does not amount to Market Abuse;
        (b) it conforms with the Price Stabilising Rules; or
        (c) it is done by a person acting on behalf of a public authority in the legitimate exercise of its public functions.
        Amended on June 25, 2018

      • 94. Insiders

        For the purposes of this Part, an Insider is any person who has Inside Information —

        (a) as a result of his membership of an administrative, management or supervisory body of an Issuer of Financial Instruments;
        (b) as a result of his holding in the capital of an Issuer of Financial Instruments;
        (c) as a result of having access to the information through the exercise of his employment, profession or duties;
        (d) as a result of his criminal activities; or
        (e) which he has obtained by other means and which he knows, or could reasonably be expected to know, is Inside Information.

      • 95. Inside Information

        (1) This section defines "Inside Information" for the purposes of these Regulations.
        (2) In relation to Financial Instruments, Accepted Crypto Assets or Related Instruments which are not Commodity Derivatives, Inside Information is information of a Precise nature which —
        (a) is not generally available;
        (b) relates, directly or indirectly, to one or more Issuers of the Financial Instruments or to one or more of the Financial Instruments or Accepted Crypto Assets; and
        (c) would, if generally available, be likely to have a significant effect on the price of the Financial Instruments, Accepted Crypto Assets or Related Instruments.
        (3) In relation to Financial Instruments or Related Instruments which are Commodity Derivatives, Inside Information is information of a Precise nature which —
        (a) is not generally available;
        (b) relates, directly or indirectly, to one or more such derivatives; and
        (c) users of markets on which the derivatives are traded would expect to receive in accordance with any Accepted Market Practices on those markets.
        (4) In relation to a person charged with the execution of orders concerning any Financial Instruments, Accepted Crypto Assets or Related Instruments, Inside Information includes information conveyed by a client and related to the client's pending orders which —
        (a) is of a Precise nature;
        (b) is not generally available;
        (c) relates, directly or indirectly, to one or more Issuers of Financial Instruments or to one or more Financial Instruments; and
        (d) would, if generally available, be likely to have a significant effect on the price of those Financial Instruments, Accepted Crypto Assets or Related Instruments.
        (5) Information is Precise if it —
        (a) indicates circumstances that exist or may reasonably be expected to come into existence or an event that has occurred or may reasonably be expected to occur; and
        (b) is specific enough to enable a conclusion to be drawn as to the possible effect of those circumstances or that event on the price of Financial Instruments or Related Instruments.
        (6) Information would be likely to have a significant effect on price if and only if it is information of a kind which a reasonable investor would be likely to use as part of the basis of his investment decisions.
        (7) For the purposes of subsection (3)(c), users of markets on which investments in Commodity Derivatives are traded are to be treated as expecting to receive information relating directly or indirectly to one or more such derivatives in accordance with any Accepted Market Practices, which is —
        (a) routinely made available to the users of those markets; or
        (b) required to be disclosed in accordance with any statutory provision, market rules, or contracts or customs on the relevant underlying commodity market or Commodity Derivatives market.
        (8) Information which can be obtained by research or analysis conducted by, or on behalf of, users of a market is to be regarded, for the purposes of this Part, as being generally available to them.
        Amended on June 25, 2018

    • The Rules of Market Conduct

      • 96. The Rules of Market Conduct

        (1) The Regulator may make Rules ("Rules of Market Conduct") specifying —
        (a) descriptions of Behaviour that, in the opinion of the Regulator, amount to Market Abuse;
        (b) descriptions of Behaviour that, in the opinion of the Regulator, do not amount to Market Abuse;
        (c) factors that, in the opinion of the Regulator, are to be taken into account in determining whether or not Behaviour amounts to Market Abuse;
        (d) descriptions of Behaviour that are Accepted Market Practices in relation to one or more Prescribed Markets;
        (e) descriptions of Behaviour that are not Accepted Market Practices in relation to one or more Prescribed Markets.
        (2) Rules of Market Conduct may make different provisions in relation to persons, cases or circumstances of different descriptions.

      • 97. Effect of the Rules of Market Conduct

        (1) If a person behaves in a way which is described (in the Rules of Market Conduct in force under section 96 at the time of the Behaviour) as Behaviour that, in the Regulator's opinion, does not amount to Market Abuse, that Behaviour of his is to be taken, for the purposes of these Regulations, as not amounting to Market Abuse.
        (2) Otherwise, the Rules of Market Conduct in force under section 96 at the time when particular Behaviour occurs may be relied on so far as it indicates whether or not that Behaviour should be taken to amount to Market Abuse.

      • 98. Prohibition on Market Abuse

        (1) A person ("A") shall not —
        (a) engage in Market Abuse; or
        (b) by taking or refraining from taking any action, require or encourage another person or persons to engage in Behaviour which, if engaged in by A, would amount to Market Abuse.
        (2) A person does not contravene subsection (1) if —
        (a) he believed, on reasonable grounds, that his Behaviour did not fall within paragraph (a) or (b) of that subsection; or
        (b) he took all reasonable precautions and exercised all due diligence to avoid behaving in a way which fell within paragraph (a) or (b) of that subsection.

    • Miscellaneous

      • 99. Suspension of investigations

        (1) If the Regulator considers it desirable or expedient because of the exercise or possible exercise of a power relating to Market Abuse, it may direct a Recognised Body —
        (a) to terminate, suspend or limit the scope of any inquiry which the Recognised Body is conducting under its rules; or
        (b) not to conduct an inquiry which the Recognised Body proposes to conduct under its rules.
        (2) A Direction under this section —
        (a) must be given to the Recognised Body concerned by notice in writing; and
        (b) is enforceable, on the application of the Regulator, by injunction.
        (3) The Regulator's powers relating to Market Abuse are its powers —
        (a) under Part 19; or
        (b) to appoint a person to conduct an investigation under section 205.

      • 100. Effect on transactions

        The taking of any action under Part 19 in relation to Market Abuse does not make any transaction void or unenforceable.

      • 101. Protected Disclosures

        (1) A disclosure which satisfies the following three conditions is not to be taken to breach any restriction on the disclosure of information (however imposed).
        (2) The first condition is that the information or other matter —
        (a) causes the Disclosing Person to know or suspect; or
        (b) gives him reasonable grounds for knowing or suspecting;
        that another person has engaged in Market Abuse.
        (3) The second condition is that the information or other matter disclosed came to the Disclosing Person in the course of his trade, profession, business or employment.
        (4) The third condition is that the disclosure is made to the Regulator or to a nominated officer as soon as is practicable after the information or other matter comes to the Disclosing Person.
        (5) A disclosure to a nominated officer is a disclosure which is made to a person nominated by the Disclosing Person's employer to receive disclosures under this section, and is made in the course of the Disclosing Person's employment and in accordance with the procedure established by the employer for the purpose.
        (6) For the purposes of this section, references to a person's employer include any body, association or organisation (including a voluntary organisation) in connection with whose activities the person exercises a function (whether or not for gain or reward) and references to employment must be construed accordingly.