21.07.2020

Market Abuse Dictionary (Jargon)

This Market Abuse (Jargon) Dictionary is a section of a financial regulatory dictionary. And it has a specific regulation. The language of the financial regulatory field is complex and an entry barrier to understanding its regulation. This work is informative and lacking in scientific character. It is only an approach that facilitates access to a complex subject. This same work and this particular section are available in Spanish.

Por Sanz González , María

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Concept	Definition
DIRECT ELECTRONIC ACCESS	An arrangement where a member or participant or client of a trading venue permits a person to use its trading code so the person can electronically transmit orders relating to a financial instrument directly to the trading venue and includes arrangements which involve the use by a person of the infrastructure of the member or participant or client, or any connecting system provided by the member or participant or client, to transmit the orders (direct market access) and arrangements where such an infrastructure is not used by a person (sponsored access).
COMPETENT AUTHORITY	An authority designated in accordance with Article 22 of Regulation UE 596/2014
NATIONAL REGULATORY AUTHORITY	A national regulatory authority designated in accordance with Article 35(1) of Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in electricity (10) or Article 39(1) of Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas
TRADING VENUE	A regulated market, an MTF or an OTF;
SPOT COMMODITY CONTRACT	A contract for the supply of a commodity traded on a spot market which is promptly delivered when the transaction is settled, and a contract for the supply of a commodity that is not a financial instrument, including a physically settled forward contract
MARKET MAKER	A person who holds himself out on the financial markets on a continuous basis as being willing to deal on own account by buying and selling financial instruments against his proprietary capital at prices defined by him;
EMISSION ALLOWANCE	Emission allowance as described in point (11) of Section C of Annex I to Directive 2014/65/EU, excluding derivatives in emission allowances
COMMODITY DERIVATIVES	Those financial instruments defined in point (44)(c) of Article 4(1) of Directive 2014/65/EU; which relate to a commodity or an underlying referred to in Section C(10) of Annex I to Directive 2014/65/EU; or in points (5), (6), (7) and (10) of Section C of Annex I thereto
ISSUER	A legal entity governed by private or public law, which issues or proposes to issue financial instruments, the issuer being, in case of depository receipts representing financial instruments, the issuer of the financial instrument represented
INVESTMENT FIRM	Any legal person whose regular occupation or business is the provision of one or more investment services to third parties and/or the performance of one or more investment activities on a professional basis. Member States may include in the definition of investment firms undertakings which are not legal persons, provided that: (a)their legal status ensures a level of protection for third parties’ interests equivalent to that afforded by legal persons; and (b)they are subject to equivalent prudential supervision appropriate to their legal form. However, where a natural person provides services involving the holding of third party funds or transferable securities, that person may be considered to be an investment firm for the purposes of this Directive and of Regulation (EU) No 600/2014 only if, without prejudice to the other requirements imposed in this Directive, in Regulation (EU) No 600/2014, and in Directive 2013/36/EU, that person complies with the following conditions: (a)the ownership rights of third parties in instruments and funds must be safeguarded, especially in the event of the insolvency of the firm or of its proprietors, seizure, set-off or any other action by creditors of the firm or of its proprietors; (b)the firm must be subject to rules designed to monitor the firm’s solvency and that of its proprietors; (c)the firm’s annual accounts must be audited by one or more persons empowered, under national law, to audit accounts; (d) where the firm has only one proprietor, that person must make provision for the protection of investors in the event of the firm’s cessation of business following the proprietor’s death or incapacity or any other such event;
INSTITUTION	A credit institution or an investment firm
CREDIT INSTITUTION	An undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account
FINANCIAL INSTITUTION	An undertaking other than an institution, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and point 15 of Annex I to Directive 2013/36/EU, including a financial holding company, a mixed financial holding company, a payment institution within the meaning of Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (23), and an asset management company, but excluding insurance holding companies and mixed-activity insurance holding companies as defined in point (g) of Article 212(1) of Directive 2009/138/E
EXPERT	A person referred to in Article 3(1)(34)(ii) of Regulation (EU) No 596/2014 who repeatedly proposes investment decisions in relation to financial instruments and who:i) claims to have financial experience or knowledgeii) presents his recommendation in a way that makes other people with experience or knowledge in the financial field understand that he also has experience.
STAKE-BUILDING	An acquisition of securities in a company which does not trigger a legal or regulatory obligation to make an announcement of a takeover bid in relation to that company
GROUP	A parent undertaking and all its subsidiary undertakings
BENCHMARK	Any rate, index or figure, made available to the public or published that is periodically or regularly determined by the application of a formula to, or on the basis of the value of one or more underlying assets or prices, including estimated prices, actual or estimated interest rates or other values, or surveys, and by reference to which the amount payable under a financial instrument or the value of a financial instrument is determined
INFORMATION RECOMMENDING OR SUGGESTING AN INVESTMENT STRATEGY	Information: (i)produced by an independent analyst, an investment firm, a credit institution, any other person whose main business is to produce investment recommendations or a natural person working for them under a contract of employment or otherwise, which, directly or indirectly, expresses a particular investment proposal in respect of a financial instrument or an issuer; or (ii)produced by persons other than those referred to in point (i), which directly proposes a particular investment decision in respect of a financial instrument
FINANCIAL INSTRUMENT	(1)Transferable securities; (2)Money-market instruments; (3)Units in collective investment undertakings; (4)Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, emission allowances or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash; (5)Options, futures, swaps, forwards and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event; (6)Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market, a MTF, or an OTF, except for wholesale energy products traded on an OTF that must be physically settled; (7)Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in point 6 of this Section and not being for commercial purposes, which have the characteristics of other derivative financial instruments; (8)Derivative instruments for the transfer of credit risk; (9)Financial contracts for differences; (10)Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market, OTF, or an MTF; (11) Emission allowances consisting of any units recognised for compliance with the requirements of Directive 2003/87/EC (Emissions Trading Scheme).
COMMODITY	Any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products, and energy such as electricity
ELECTRONIC MEANS	Electronic equipment for processing (including digital compression), storage and transmission of data using cables, radio, optical technologies or other electromagnetic .
SPOT MARKET	A commodity market in which commodities are sold for cash and promptly delivered when the transaction is settled, and other non-financial markets, such as forward markets for commodities
SME GROWTH MARKET	A MTF that is registered as an SME growth market in accordance with Article 33 of MiFID II
REGULATED MARKET	A multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments – in the system and in accordance with its non-discretionary rules – in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III of MiFID II
ALGORITHMIC TRADING	Trading in financial instruments where a computer algorithm automatically determines individual parameters of orders such as whether to initiate the order, the timing, price or quantity of the order or how to manage the order after its submission, with limited or no human intervention, and does not include any system that is only used for the purpose of routing orders to one or more trading venues or for the processing of orders involving no determination of any trading parameters or for the confirmation of orders or the post-trade processing of executed transactions;
SUSPICIOUS TRANSACTION AND ORDER REPORT	The communication of suspicious orders and transactions, including cancellations and modifications, which may constitute insider trading, market manipulation or attempts to operate insider information or manipulate the market, carried out in accordance with Article 16(1) and (2) of Regulation (EU) No 596/2014;
ORDER	Each of the orders, including each of the quotes, regardless of whether its object is the initial presentation, modification, updating or cancellation of an order and regardless its type.
SUSPICIOUS ORDERS	The communication of suspicious orders and transactions, including cancellations and modifications, which may constitute insider trading, market manipulation or attempts to operate insider information or manipulate the market, carried out in accordance with Article 16(1) and (2) of Regulation (EU) No 596/2014;
MARKET OPERATOR	A person or persons who manages and/or operates the business of a regulated market and may be the regulated market itself
EMISSION ALLOWANCE MARKET PARTICIPANT	Any person who enters into transactions, including the placing of orders to trade, in emission allowances, auctioned products based thereon, or derivatives thereof and who does not benefit from an exemption pursuant to the second subparagraph of Article 17(2) of Regulation EU 596/2014
DISCLOSING MARKET PARTICIPANT	A person who falls into any of the categories set out in points (a) to (d) of Article 11(1) or of Article 11(2 of Regulation 59672014), and discloses information in the course of a market sounding
PERSON	A natural or legal person
PERSON DISCHARGING MANAGERIAL RESPONSIBILITIES	A person within an issuer, an emission allowance market participant or another entity referred to in Article 19(10) of Regulation (EU) No 596/2014, who is: (a)a member of the administrative, management or supervisory body of that entity; or(b)a senior executive who is not a member of the bodies referred to in point (a), who has regular access to inside information relating directly or indirectly to that entity and power to take managerial decisions affecting the future developments and business prospects of that entity
PERSON CLOSELY ASSOCIATED	(a)a spouse, or a partner considered to be equivalent to a spouse in accordance with national law; (b)a dependent child, in accordance with national law; (c)a relative who has shared the same household for at least one year on the date of the transaction concerned; or (d)a legal person, trust or partnership, the managerial responsibilities of which are discharged by a person discharging managerial responsibilities or by a person referred to in point (a), (b) or (c), which is directly or indirectly controlled by such a person, which is set up for the benefit of such a person, or the economic interests of which are substantially equivalent to those of such a person
WHOLESALE ENERGY PRODUCT	The following contracts and derivatives, irrespective of where and how they are traded: (a)contracts for the supply of electricity or natural gas where delivery is in the Union; (b)derivatives relating to electricity or natural gas produced, traded or delivered in the Union; (c)contracts relating to the transportation of electricity or natural gas in the Union; (d)derivatives relating to the transportation of electricity or natural gas in the Union. Contracts for the supply and distribution of electricity or natural gas for the use of final customers are not wholesale energy products. However, contracts for the supply and distribution of electricity or natural gas to final customers with a consumption capacity greater than the threshold set out in the second paragraph of Article 2(5) of Regulation 1227/2011 shall be treated as wholesale energy products
PERSON PROFESSIONALLY ARRANGING OR EXECUTING TRANSACTIONS	A person professionally engaged in the reception and transmission of orders for, or in the execution of transactions in, financial instruments
BUY-BACK PROGRAMME	Trading in own shares in accordance with Articles 21 to 27 of Directive 2012/30/EU of the European Parliament and of the Council
INVESTMENT RECOMMENDATIONS	Information recommending or suggesting an investment strategy, explicitly or implicitly, concerning one or several financial instruments or the issuers, including any opinion as to the present or future value or price of such instruments, intended for distribution channels or for the public
DATA TRAFFIC RECORD	Records of any data processed for the purpose of the conveyance of a communication on an electronic communications network or for the billing thereof
MULTILATERAL TRADING FACILITY (MTF)	A multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments – in the system and in accordance with non-discretionary rules – in a way that results in a contract in accordance with Title II of MiFID II Directive;
ORGANISED TRADING FACILITY or OTF	A multilateral system which is not a regulated market or an MTF and in which multiple third-party buying and selling interests in bonds, structured finance products, emission allowances or derivatives are able to interact in the system in a way that results in a contract in accordance with Title II of MiFID II Directive
HIGH-FREQUENCY ALGORITHMIC TRADING TECHNIQUE	An algorithmic trading technique characterised by: (a)infrastructure intended to minimise network and other types of latencies, including at least one of the following facilities for algorithmic order entry: co-location, proximity hosting or high-speed direct electronic access; (b) system-determination of order initiation, generation, routing or execution without human intervention for individual trades or orders; and (c) high message intraday rates which constitute orders, quotes or cancellations;