1887

oa De Jure - A historical overview of the regulation of market abuse under the Securities Services Act 36 of 2004

 

Abstract

The effects of market abuse have been felt in a number of financial markets globally. South Africa is not an exception. A reputation of high levels of market abuse practices associated with the South African financial markets in the mid 1990s is a case in point. In an attempt to effectively combat market abuse in the South African financial markets, the Securities Services Act4 was enacted to repeal all the flawed provisions of the Insider Trading Act and improve the enforcement of the market abuse prohibition in South Africa. It is against this background that this article provides an overview analysis of the effectiveness of the market abuse regulatory framework under the Securities Services Act to investigate whether it has enhanced market integrity and public investor confidence in the South African financial markets. This is done by examining whether the relevant market abuse legislation is being properly enforced. This is also aimed at increasing awareness on the part of the relevant stakeholders. To this end, the article discusses other additional measures that can, where necessary, be incorporated into the relevant South African market abuse legislation to improve its enforcement. Notably, three forms of market abuse, namely insider trading, prohibited trading practices (trade-based market manipulation) and the publication of false, misleading or deceptive statements relating to listed companies (disclosure-based market manipulation), are prohibited in South Africa. However, notwithstanding the anti-market abuse efforts introduced by the Securities Services Act, more may still need to be done to increase the number of convictions and settlements in cases involving market abuse in South Africa.


Die gevolge van die misbruik van die mark word reeds in 'n aantal van die wêreld se finansiële markte gevoel. Suid-Afrika is nie 'n uitsondering nie. 'n Reputasie van hoë vlakke van die mark misbruik praktyke wat verband hou met die Suid-Afrikaanse finansiële markte in die middel van die 1990's is 'n goeie voorbeeld. In 'n poging om die misbruik van die mark in Suid-Afrika te bekamp, is die Securities Services Act 36 van 2004 verorden ten einde al die gebrekkige bepalings van die Wet op Binnekennistransaksies 135 van 1998, te herroep en te verbeter. Dit is teen hierdie agtergrond dat hierdie artikel 'n oorsig bied sowel as 'n ontleding van die doeltreffendheid van die mark misbruik regulerende raamwerk in terme van die Securities Services Act 36 van 2004 te ondersoek ten einde vas te stel of dit openbare vertroue van beleggers in die Suid-Afrikaanse finansiële markte herstel het. Laasgenoemde word gedoen om bewustheid te verhoog aan die kant van die betrokke rolspelers ten aansien van die vraag of die Suid-Afrikaanse mark misbruik wetgewing behoorlik toegepas word. Die artikel bespreek ook ander maatreëls wat aangewand kan word, waar nodig, ten einde die betrokke Suid-Afrikaanse mark misbruik wetgewing sowel as die toepassing daarvan te verbeter.

Loading

Article metrics loading...

/content/dejure/47/2/EJC166188
2014-01-01
2016-12-06
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error