Comply with Market Abuse Regulation as per MiFID & MiCAR in 2025

1. What does MAR compliance mean under MiFID II?

Investment firms authorised under MiFID II are already subject to MAR obligations. These include: 

• Insider dealing: Prohibition on trading financial instruments based on inside information. 

• Unlawful disclosure: Prohibition on sharing confidential information outside the normal course of duties. 
• Market manipulation: Prohibition on creating false or misleading signals on price, supply, or demand. 

Firms must also maintain systems and procedures to detect suspicious activity and submit Suspicious Transaction and Order Reports (STORs) promptly to CySEC. 

MAR obligations apply broadly: not only to investment firms under MiFID II but also to buy-side firms, proprietary traders, and even non-financial companies when they trade financial instruments.

2. What are some examples of market manipulation? 

The Market Abuse Regulation (MAR) and national frameworks provide detailed illustrations of manipulative practices, including:

• Wash trades and matched orders, creating artificial trading activity.
• Pump-and-dump or trash-and-cash schemes, where misleading information inflates or depresses asset prices.
• Layering and spoofing, where large orders are placed and later withdrawn to create false signals. 
• Spreading false information, including through media or online platforms, with the intent to mislead investors.

The LIBOR scandal remains one of the most striking examples, where benchmark manipulation by major banks distorted global markets and resulted in billions of euros in fines and criminal prosecutions.

3. How does MiCAR address market abuse in crypto-assets?

The Markets in Crypto-Assets Regulation (MiCAR), effective from 30 December 2024, introduces binding rules to address market abuse in crypto-asset markets. Key provisions include: 

• Article 87: Definition of inside information specific to crypto-assets.
• Article 88: Obligation on issuers and offerors to disclose inside information promptly and maintain public access for at least five years. 
• Article 89: Prohibition of insider dealing in crypto-assets, including the use of confidential order information. 
• Article 90: Prohibition of unlawful disclosure of inside information. 
• Article 91: Prohibition of market manipulation, covering deceptive practices, false information dissemination, and unfair trading conditions.
• Article 92: Requirement for crypto-asset service providers to establish systems for prevention, detection, and reporting of market abuse. 

4. What powers does CySEC have in supervision and enforcement? 

As the competent authority in Cyprus, the Cyprus Securities and Exchange Commission (CySEC) supervises and enforces compliance with MAR and MiCAR. CySEC’s powers include:

• Accessing documents, trading data, and telecom records. 
• Conducting on-site inspections and seizing evidence. 
• Requesting asset freezes and suspending trading.
• Imposing administrative fines, public warnings, and bans on individuals. 

Administrative fines can reach up to €5 million for natural persons and €15 million or 15% of annual turnover for legal persons, depending on the type and severity of the infringement. 

CySEC has already imposed significant penalties under MAR for failures in surveillance systems, delayed suspicious transaction reporting, and inadequate monitoring arrangements. 

5. How can SALVUS assist you?

At SALVUS, we assist regulated entities in strengthening their compliance frameworks against market abuse risks. Our support includes:

• Drafting and providing support to complete the Suspicious Transaction and Order Reports (STORs) in line with regulatory expectations. 

• Preparing internal policies and training programs tailored to MAR and MiCAR requirements. 

• Providing ongoing compliance support during CySEC inspections and supervisory reviews. 

Our team ensures that firms meet their obligations under both MiFID II and MiCAR, safeguarding investor trust while avoiding regulatory and reputational risks. 

If you are interested in Comply with Market Abuse Regulation as per MiFID & MiCAR in 2025, reach out to us at info@salvusfunds.com we’re ready to answer your questions.

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The information provided in this article is for general information purposes only. You should always seek professional advice suitable for your needs.