The regulation of Market Abuse – is it time for an alternative approach?

Aristodemou, Marina and Ryder, Nicholas ORCID: https://orcid.org/0009-0008-8712-2946 2026. The regulation of Market Abuse – is it time for an alternative approach? Błachnio-Parzych, Anna and Cornacchia, Luigi, eds. Legal Protection against Financial Market Abuse International and Local Perspectives, The Law of Financial Crime, London: Routledge,

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Abstract

This chapter explores the regulatory framework governing market abuse, particularly focusing on market manipulation, and advocates that an alternative approach is necessary. The introduction provides an overview of the LIBOR and FX benchmark manipulation scandals, highlighting the context and importance of robust regulatory measures. The chapter examines the existing United Kingdom (UK) and European Union (EU) legal frameworks, detailing the roles of the Financial Conduct Authority (FCA) and the European Commission in civil proceedings related to market abuse. The discussion then shifts to corporate liability for economic crime, scrutinising the appropriateness of the failure to prevent offence. It delves into the concept of corporate legal personality and the corporate veil, tracing the evolution of the failure to prevent doctrine and its impact on corporate culture through the adoption of ‘reasonable procedures’. The paper also evaluates the effectiveness of Deferred Prosecution Agreements (DPAs) in cases of market manipulation and insider dealing, providing illustrative examples. Finally, the chapter assesses the role of financial penalties in deterring market abuse and whether they effectively minimise the potential for re-offending. The conclusion synthesises the findings and offers recommendations for improving the current regulatory approach, contemplating whether a failure to prevent offence market abuse is appropriate and whether it could enhance the prevention and prosecution of market abuse more effectively. This comprehensive analysis aims to contribute to the ongoing debate on the optimal regulation of market abuse, ensuring financial markets operate with greater integrity and transparency.

Item Type:	Book Section
Date Type:	Publication
Status:	In Press
Schools:	Schools > Cardiff Law & Politics Schools > Law Research Institutes & Centres > Cardiff Centre for Crime, Law and Justice (CCLJ)
Publisher:	Routledge
ISBN:	978-1032898612
Date of First Compliant Deposit:	28 November 2025
Last Modified:	12 Dec 2025 09:16
URI:	https://orca.cardiff.ac.uk/id/eprint/182748

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