(MAD)
The directive on Insider Dealing and Market Manipulation (2003/6/EC). MAD is a measure under the Financial Services Action Plan which defines the behaviour considered to be market abuse and includes preventative measures aimed at making market abuse less likely to occur, including requirements for:
• Companies to maintain insider lists.
• Senior managers and their connected persons to disclose dealings in the company's securities.
• Disclosure and control of inside information.
• Suspicious transaction reporting.
• Disclosure in relation to investment research and recommendations.
MAD applies to any financial instrument admitted to trading on a regulated market or those where a request for admission to trading has been made. The deadline for implementation of MAD was 12 October 2004.
Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.