IRELAND Law and Practice Contributed by: Niall Esler, Shane Martin, James O’Doherty and Laura Whitson, Walkers
benefit from any third party for their execution on a particular execution venue, or for forward - ing orders of those clients to any third party for their execution on a particular execution venue. Under MiCAR, CASPs receiving and transmit - ting orders for crypto-assets on behalf of clients are prohibited from receiving any remuneration, discount or non-monetary benefit in return for routing orders received from clients to a particu - lar trading platform or to another CASP. 6.8 Market Integrity Principles In addition to domestic requirements, Ireland has implemented EU securities markets legisla - tion, some of which is directly applicable. This legislation includes: • the Prospectus Regulation; • the Market Abuse Regulation; • the Transparency Directive; • the Short Selling Regulation; • the Securities Financing Transaction Regula - tion; • Regulation 648/2012 on OTC Derivatives, Central Counterparties and Trade Reposito - ries (EMIR); and • MiFID II. The Market Abuse Regulation (Regulation (EU) 596/2014 – MAR) establishes a common EU reg - ulatory framework on insider dealing, the unlaw - ful disclosure of inside information and market manipulation ( “market abuse” ), and measures to prevent market abuse. It applies to MiFID II financial instruments admitted to trading on an EU-regulated market or for which a request for admission to trading has been made, as well as any MiFID II financial instruments traded on an MTF, admitted to trading on an MTF or for which a request for admission to trading on an MTF has been made, or traded on an OTF and certain
other financial instruments, the price or value of which depends or has an effect on the price or value of the above and emission allowances. MAR can apply to other instruments and is not limited to transactions, orders or behaviour on a trading venue. Market manipulation, as defined under the Euro - pean Union (Market Abuse) Regulations 2016 (the “MAR Regulations” ), is an offence in Ireland. MiCAR introduces provisions to prevent and prohibit market abuse involving certain crypto- assets, as well as white paper requirements for crypto-asset issuances. 7. High-Frequency and Algorithmic Trading 7.1 Creation and Usage Regulations The primary method of regulating these tech - nologies is under the MiFID Regulations. The definition of algorithmic trading contained in the MiFID Regulations is limited to trading in MiFID II financial instruments. For asset classes outside the scope of regula - tion under the MiFID Regulations, it would be important to consult the requirements applicable to the particular asset class. 7.2 Requirement to Be Licensed or Otherwise Register as Market Makers When Functioning in a Principal Capacity Market makers in financial instruments will gen - erally require authorisation under MiFID and must comply with specific rules if engaging in algorithmic trading to pursue a market-making strategy.
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