PROHIBITION OF MARKET ABUSE – EUROPEAN LAW AND THE LAW OF THE REPUBLIC OF SERBIA

Abstract

Market abuse encompasses trading based on insider information and market manipulation. Such unfair market activities can endanger the entire market and, in their most intense and most pronounced form, seriously disrupt market dynamics, conferring undue advantages to certain participants, thus undermining principles of fair competition. Therefore, when defining legal regulations in the field of market abuse prohibition in a country, understanding the morphology of the market is crucial. It is important to consider both positive and negative consequences for the country’s market economy, if the goal is to form a transparent, integrated and efficient market, which would be attractive to investors based on such characteristics and thereby contribute to the economic growth and development of the country. The Republic of Serbia still lacks sufficiently developed mechanisms and appropriate legal solutions necessary for the functioning of a market economy, but its advantage lies in the model, experience, and judicial practice of developed markets within the member states of the European Union.

Keywords

• Market abuse
• insider information
• market manipulation
• market structures
• legal regulations
• European Union