Which of the following is true about market abuse?

• A. It is always civil
• B. Insider dealing and market manipulation may be criminal offences
• C. It has no penalties
• D. It only applies to commodities markets

Answer: (B)

Market abuse involves actions that harm market integrity, such as using confidential price‑sensitive information to trade or attempts to mislead others to move prices. The statement that insider dealing and market manipulation may be criminal offences is correct because these behaviours are treated as illegal crimes in many jurisdictions, with potential prosecutions and penalties rather than only civil remedies. Laws and regulations in place around market abuse aim to protect investors and ensure fair trading, and they can lead to fines, imprisonment, or other sanctions. It’s not limited to civil action, and it isn’t restricted to commodities markets—the reach includes a wide range of markets, including equities, bonds, derivatives, and commodities.