Insider trading on the JSE can be linked, directly or indirectly, to the reputation of the South African financial market. The regulation thereof is essential and a non-negotiable requirement for the successful attraction and retention of investment flows. Inadequacies associated with the regulatory framework regulating insider trading, the onus of proof in a criminal trial and the lack of civil remedies associated with insider trading as a form of market abuse, motivates a critical analysis into the regulatory framework on insider trading in South Africa. The aim of this study is therefore to identify international best practice principles to fill the gap in South Africa’s regulatory framework. This gap relates to the practical application and execution of legislative and other instruments in order to combat insider trading as a form of market abuse. A further aim focuses on the simultaneous development of the legislation relating to financial markets in conjunction with developments in the economy. A final aim is to determine whether and how South Africa can improve its current legislative dispensation on insider trading. In order to arrive at the aim of the study the historical development on the regulation of insider trading is discussed. A critical analysis of the relevant insider trading sections in the Securities Services Act 36 of 2004 is compared with the corresponding sections of the Financial Markets Act 19 of 2012. A discussion on the roles, duties and authority of the Financial Services Board, the Directorate of Market Abuse and the Enforcement Committee will assist in analysing these organisations' contribution in regulating insider trading in South Africa. A look into the application of other regulatory instruments including the JSE’s Code of Conduct is required. In order to determine whether and how South Africa can improve its current legislative dispensation on insider trading, a comparative study is conducted with Hong Kong. It is submitted that the South African regulatory framework on insider trading has to be revised in order to align with international best practice principles and to promote transparency of the JSE, promote investor confidence and ensure justice for all. / LLM (Import and Export Law), North-West University, Potchefstroom Campus, 2015

Insider trading on the JSE can be linked, directly or indirectly, to the reputation of the South African financial market. The regulation thereof is essential and a non-negotiable requirement for the successful attraction and retention of investment flows. Inadequacies associated with the regulatory framework regulating insider trading, the onus of proof in a criminal trial and the lack of civil remedies associated with insider trading as a form of market abuse, motivates a critical analysis into the regulatory framework on insider trading in South Africa. The aim of this study is therefore to identify international best practice principles to fill the gap in South Africa’s regulatory framework. This gap relates to the practical application and execution of legislative and other instruments in order to combat insider trading as a form of market abuse. A further aim focuses on the simultaneous development of the legislation relating to financial markets in conjunction with developments in the economy. A final aim is to determine whether and how South Africa can improve its current legislative dispensation on insider trading. In order to arrive at the aim of the study the historical development on the regulation of insider trading is discussed. A critical analysis of the relevant insider trading sections in the Securities Services Act 36 of 2004 is compared with the corresponding sections of the Financial Markets Act 19 of 2012. A discussion on the roles, duties and authority of the Financial Services Board, the Directorate of Market Abuse and the Enforcement Committee will assist in analysing these organisations' contribution in regulating insider trading in South Africa. A look into the application of other regulatory instruments including the JSE’s Code of Conduct is required. In order to determine whether and how South Africa can improve its current legislative dispensation on insider trading, a comparative study is conducted with Hong Kong. It is submitted that the South African regulatory framework on insider trading has to be revised in order to align with international best practice principles and to promote transparency of the JSE, promote investor confidence and ensure justice for all. / LLM (Import and Export Law), North-West University, Potchefstroom Campus, 2015

Market abuse practices have clearly harmed the integrity of financial markets and damaged investors’ confidence. Market abuse takes two forms: insider dealing and market manipulation. These cover a variety of illegal practices, such as misusing inside information, pursuing courses of conduct which lead to artificial transactions, giving false or misleading information, and distorting the market in other ways. This thesis aims to examine the two forms of market abuse (insider dealing and market manipulation) under the UAE legal system. Particular attention is given to Federal Law No. 4 of 2000, known as the Emirates Securities & Commodities Authority Law (ESCA Law 2000). Other regulations which affect the market place are also covered. The core question addressed in this thesis is to what extent ESCA Law 2000, and other regulations promulgated pursuant thereto, are efficient in combating market abuse practices and how they have been applied to protect market integrity and the market participants. The thesis investigates the deficiencies of the existing law through a legal comparative study of the jurisdictions of the UK and the Dubai International Financial Centre. This is followed by an applied study which consists of a questionnaire and interviews. The applied study, conducted in the UAE, aims to investigate the perspectives of legal experts, other specialists and investors towards the regulation of the securities markets in the UAE. Applied study and comparison eventually provide the basis for recommendations for the improvement of the UAE legal system, with respect to market abuse practices.

In today’s highly technologic advanced trading environment traditional investors are no longer competing at same levels as companies using automatic trading strategies. Advanced technology is of significant importance in today’s trading strategies and has forced the trading process away from humans. Instead, using programed computers packed with algorithmic formulas, these robots can spot trends before an ordinary investor can blink, changing strategies and execute orders within milliseconds. Given this technological advantage firms perhaps have crossed the line when trying to earn abnormal return by using market manipulating trading strategy without any respect to traditional investors and business ethics. My research at hand will bring clarity to what extent this problem are related to Swedish markets and discussion around upcoming market regulations and firms social ethics and responsibility will be made.

The integrity of financial markets is threatened by a number of harmful practices. These are often generally described as ‘market abuse’. Market abuse comprises two practices: insider dealing and market manipulation. This thesis mainly explores market manipulation and the relevant Saudi law. Market manipulation was first regulated in 2003.1 It is therefore possible and useful for the purposes of this thesis, to distinguish between the pre- and post- enactment periods. This study has four main objectives. First, it will define market manipulation and describe its most common forms. Secondly, it will assess the application of Saudi civil and criminal law to market manipulation prior to the enactment of the Capital Market Law 2003. Thirdly, it will critically evaluate the application of this law to the different forms of market manipulation. Finally, it will assess how well the 2003 law is enforced. Different methodologies have been used to achieve these objectives with a focus on critical analysis and comparative study. The author has used the well-established US Securities Exchange Commission (SEC) and the UK Financial Services and Markets Act 2000 to evaluate the Capital Market Law 2003. Prior to the enactment of this law, there were almost no regulations dealing with market manipulation. The 2003 law is applicable to most forms of market manipulation with the exception of security price stabilization and forms manipulation. Penalties under Saudi civil law tend to be more lenient compared to the US and the UK and this may inhibit its deterrent effect. Also, Saudi judges generally tend to lack the necessary understanding of manipulative practices to enforce the law effectively. Therefore, the success of the 2003 law in deterring and punishing manipulative practices should be reassessed in a few years’ time, when there is more data to make an accurate evaluation.

Efektyvus vertybinių popierių rinkos funkcionavimas yra grindžiamas sąžininga prekyba, savalaikiu ir pilnu informacijos atskleidimu bei investuotojų teisių apsaugos garantija. Rinkos funkcionavimo efektyvumas gali būti pasiektas tik tuo atveju, jeigu yra sėkmingai įgyvendinama piktnaudžiavimo vertybinių popierių rinka identifikavimo ir prevencijos sistema. Piktnaudžiavimus vertybinių popierių rinka galima būtų išskirti į dvi pagrindines grupes: manipuliavimą vertybinių popierių kaina ir pasinaudojimą viešai neatskleista informacija. / This paper examines the problem of market abuse. The guidance and accompanying examples are presented to help the development of a common understanding of what constitutes market abuse. The types of market manipulations are provided, as well as, the prohibitions on such practices. The definition of non-public information is concretized and its main aspects are detailed. Furthermore, diagnostic flags and signals of possible market abuse that could be monitored by competent authorities and by market participants within the limits of their sphere of activity are proposed. The specified diagnostic flags and signals could be used to identify and prosecute market manipulation and insider trading.

The master's thesis on the topic of financial market and its legal aspects aims to analyse the weaknesses in the legal regulation of markets in financial instruments. The thesis is divided into six chapters, introduction and conclusion. The chapters are divided into subchapters. The first chapter defines the financial market and deals with its divisions. Since the legal aspects of financial market are a traditional subject of the study of financial law, the basic concepts of this field are notoriously well known. The first chapter therefore describes only the basic division that is applied to the financial markets. It then goes on to compare existing definition of the financial markets that can be found in academic literature. The second chapter discusses the capital market participants. As certain concepts of financial market might suggest, many different persons might fall into the category of market participants. This chapter, however, discusses selected persons who provide their services on the market in financial instruments. It focuses mainly on investment firm because it provides investors with access to the capital market. The third chapter discusses financial instruments. The fourth chapter concerns investment services that can be provided in relation to financial instruments. The fifth chapter...

Magister Legum - LLM / The regulation of market abuse is currently an ever evolving subject, to such an extent that it has been placed as a high priority for regulators worldwide.¹ The Financial Markets Act 19 of 2012 (FMA) of South Africa² prohibits improper practices and is aimed at ensuring that market participants operate in a market that is free, safe and fair. In light of the above and as per example, all members of the stock exchange ensure that they accordingly adhere to the aims of the FMA by exercising functions such as due diligence and having a shared goal in embedding the values entrenched in the FMA.³ The purpose of this dissertation is aimed at assessing the key elements of the transformation process that the South African financial markets have embarked on, since the introduction of the FMA. More specifically, the paper aims to focus on the elements in relation to market abuse practices.⁴ The paper seeks to: 1. provide an overview analysis of the current market abuse control enforcement framework in relation to some selected aspects of the financial markets in South Africa. 2. look at the regulation employed in one of the biggest trading products namely, equities and current lacuna, the legislation that governs high frequency trading under these trading products and in general. 3. review whether regulation in South Africa on market abuse practices are robust enough to deal with key market abuse practices such as insider trading and market manipulation that manifested during the recent global financial crisis. 4. provide a comparative review of the current market leaders regulatory mechanisms on market abuse.

À la suite de scandales financiers notoires, et au vu de l’évolution des marchés financiers et des nouvelles technologies, l’Union européenne vient renforcer le cadre législatif européen des abus de marché, au nom de l’intégrité des marchés. Loin de constituer un simple regroupement d’infractions boursières, le concept d’abus de marché pourrait être analysé comme une véritable notion juridique. Dès lors, l’essai d’une définition générique de l’abus de marché permettrait d’en clarifier le domaine et d’en guider sa mise en œuvre. L’étude du sens de la notion d’abus de marché permettrait d’éviter les révisions successives de la norme nationale et européenne afin de conférer à l’abus de marché des règles propices à l’intégrité et à l’efficience du marché. Une fois la notion d’abus de marché définie avec précision, sa lutte préventive ou répressive ne pourra être que renforcée. Pour autant, la nouvelle coexistence de la répression administrative et de la répression criminelle de l’abus de marché en droit financier européen conduit à s’interroger sur l’application du principe non bis in idem en la matière. Afin de rendre effective cette refonte, il est ainsi primordial que le droit de la responsabilité civile vienne soutenir le droit de la répression de l’abus de marché. Finalement, pour maintenir la place financière européenne comme une place concurrentielle, il est essentiel que la refonte de l’abus de marché ne se fasse pas de manière déséquilibrée en faveur de l’impératif d’intégrité et au détriment de l’efficience du marché. On ne doit pas omettre que le droit des abus de marché est un droit économique au service de l’efficience du marché. / Following notorious financial scandals, and looking at the evolution of the financial markets and the new technologies, the European Union has reinforced the market abuse's European legal framework in the name of markets integrity. Far from being a mere grouping of financial offenses, the concept of market abuse could be analyzed as a real legal construct. Henceforth, testing a generic definition of the market abuse would allow clarifying its scope and guiding its implementation. Studying the meaning of the market abuse notion would avoid the successive revision of the national and European norm in order to provide the market abuse rules suitable to the market integrity and efficiency. Once the market abuse notion precisely defined, its preventive or repressive fighting could only be reinforced. However, the new coexistence of the administrative and criminal repressions of the market abuse in European financial law leads to some interrogations regarding the non bis idem principle application. In order to make the recast efficient, it is mandatory for the civil responsibility law to sustain the market abuse repressive law. Eventually, in order to maintain the European financial market competitiveness, it is essential that the market abuse recast is not unbalanced in favor of the integrity requirement and against the market efficiency. We shall not forget that the market abuse law is an economic law serving the market efficiency.

Bien que les recherches sur l'adoption obligatoire des IFRS ne montrent pas une amélioration claire de la qualité de l'information financière (augmentation de la transparence et/ou de la comparabilité des états financiers), elles mettent quasiment toutes en évidence des impacts bénéfiques pour ce qui concerne la liquidité, l'asymétrie d'information ou le coût du capital des entreprises qui les ont adoptées. Dans l'Union Européenne (UE), l'adoption obligatoire des IFRS a coïncidé avec l'adoption de la directive sur les abus de marché (MAD). Tandis que l'adoption obligatoire des IFRS a eu lieu en 2005, la date d'adoption de MAD varie entre 2004 et 2007 selon le pays de l'UE considéré. En outre, les IFRS et MAD ont le même objectif. Il s'agit d'accroître la transparence des entreprises cotées, soit par l'amélioration de la qualité de l'information financière (IFRS), soit en interdisant toute communication sélective afin que les investisseurs bénéficient tous de la même information au même moment (MAD). Notre première étude a pour objectif de dissocier les impacts respectifs de l'adoption de MAD et de l'adoption des IFRS sur la liquidité des titres afin de déterminer l'effet spécifique de chaque règlementation. Nos résultats suggèrent qu'une partie importante des effets traditionnellement attribués aux IFRS provient de l'adoption simultanée de la directive sur les abus de marché. Notre deuxième étude porte sur le rôle de l'environnement informationnel. Examiner comment l'environnement informationnel affecte les effets de MAD et des IFRS sur la liquidité des titres est crucial pour déterminer si toutes les entreprises bénéficient identiquement de ces règlementations. En utilisant la taille des entreprises et le suivi des analystes financiers comme mesures de l'environnement informationnel des entreprises, nous montrons que les petites entreprises et les entreprises peu suivies par les analystes sont celles qui bénéficient le plus de l'introduction des IFRS. En revanche, les grandes entreprises et les entreprises fortement suivies par les analystes sont celles qui bénéficient le plus de l'adoption de MAD. Notre troisième étude traite de l'efficacité des modalités d'application de ces réglementations (enforcement). Nous montrons que les effets des IFRS et de MAD sur la liquidité des titres des entreprises soumises à ces réglementations dépendent fortement des modalités visant à garantir leur bonne application. En la matière, il est toutefois essentiel de bien dissocier les effets imputables à l'une de ces réglementations de ceux imputables à l'autre. Au total, nous mettons en garde les chercheurs à ne pas attribuer abusivement d'éventuels effets observés à une règlementation, notamment à l'adoption des IFRS, sans impérativement tenir compte de l'adoption concomitante d'autres réglementations, notamment MAD pour ce qui concerne l'Union Européenne. / While prior research on mandatory IFRS adoption fails to provide evidence of improvement in the quality of financial reporting (increased transparency and/or comparability), it provides almost unanimous evidence of beneficial capital-market impacts. Within the European Union (EU), mandatory IFRS adoption coincides with the adoption of the Market Abuse Directive (MAD). While the mandatory adoption of IFRS took place in 2005, MAD was passed between 2004 and 2007 depending on the EU country under consideration. Furthermore, both IFRS and MAD aim towards increased transparency, either by improving the quality of financial reporting (IFRS) or by prohibiting selective disclosures to enhance common information available to all market participants (MAD). Our first essay aims to disentangle the respective market impacts of MAD adoption and IFRS adoption in order to determine the specific effect of each regulation. Our evidence suggests that a significant part of the capital market effects usually attributed to IFRS comes, at least to some extent, from the contemporaneous adoption of the Market Abuse Directive. Our second essay focuses on the role of information environment. Investigating how information environment affects the market impacts of both MAD adoption and IFRS adoption is crucial to determine whether all firms benefit identically from these regulations. Using firm size and analyst following as proxies capturing firms' information environment, we provide evidence showing that small firms and firms with weak analyst following are those that benefit the most from the introduction of the IFRS mandate. In contrast, large firms and firms with high analyst coverage benefit the most from MAD adoption. Our third essay analyzes the role of enforcement. We find that the effectiveness of both IFRS and MAD is hampered by different enforcement levels across firms and countries. Moreover, the observed capital-market outcomes on one regulation differ if the effects of both regulations are not clearly dissociated. Thus, we caution researchers not to attribute capital-market outcomes primarily or solely to one regulation without taking into account the concomitant adoption of the other one.