Market abuse: Statutory exceptions and defences — What protection is available?

The new offence of market abuse was introduced by the Financial Services and Markets Act 2000 (the Act). The Financial Services Authority (FSA) is required under s. 119 of the Act to issue a code containing ‘guidance’ on market abuse (the Code). In 1998, the FSA published its first consultation on a draft Code of Market Conduct which set out the FSA's proposed market abuse regime. Responses to that consultation formed the basis for preparation of a second consultation and draft Code of Market Conduct, issued in July 2000.1 More recently, Consultation Paper 76 introduced the FSA's Supplement to the Draft Code which deals with some additional elements of the market abuse regime.