Can Dissemination of True Information Constitute Market Manipulation?

Abstract

This article discusses whether dissemination of true information can amount to market manipulation under the 2014 Market Abuse Regulation (MAR). Market manipulation typically involves misinformation, which can be seen as a form of lying, but it can also occur when material facts are omitted, making truthful statements misleading. A reasonable investor test helps determine when true information becomes misleading and thus potentially violates the ban on market manipulation under MAR. Nordic case law, which is discussed in this article, highlights how misleading statements, even if factually correct, can violate the ban on market manipulation.