86. Market Abuse

A Person must not, in the AIFC or elsewhere, directly or indirectly:

• (a) acquire or dispose of, or attempt to acquire or dispose of, for his own account or for the account of a third party, either directly or indirectly, an Investment, on the basis of Inside Information relating to the Investment; or
• (b) disclose Inside Information to another Person otherwise than in the proper course of the exercise of his employment, profession or duties; or
• (c) recommend or induce any Person, on the basis of Inside Information, to acquire or dispose of an Investment to which that information relates; or
• (d) effect, or participate in effecting, transactions or orders to trade (otherwise than for legitimate reasons in conformity with accepted market practice on the relevant market) which:

(i) give, or are likely to give a false or misleading impression as to the supply of, or demand for, or as to the price or value of, one or more Investments; or

(ii) secure the price of one or more Investments at an abnormal or artificial level; or

• (e) effect, or participate in effecting, transactions or orders to trade which employ fictitious devices or any other form of deception or contrivance; or
• (f) disseminate, or cause the dissemination of, information by any means which gives, or is likely to give, a false or misleading impression as to an Investment by a Person who knew or could reasonably be expected to have known that the information was false or misleading.

87. Rules relating to Market Abuse

The AFSA may issue Rules in respect of the scope and effect of section 86, including:

• (a) the meaning of Inside Information;
• (b) particular types of conduct that are to be regarded as contravening or not contravening section 86;
• (c) particular types of conduct that are not to be regarded as contravening section 86; and
• (d) reasons which may or may not be regarded as legitimate, and practices that may or may not be regarded as accepted market practice for the purposes of section 86(d), and such Rules will be binding on all Persons to whom section 86 relates.