It was enacted in 2003 and later revised in 2014, making it a key component of the EU's efforts to regulate and maintain fair and transparent financial markets.
The MAD applies to all financial instruments listed on an EU regulated market, including stocks, bonds, derivatives, and commodities.
The lack of clear regulations and the rise of complex financial instruments have made market abuse more widespread and harder to detect.
[citation needed] The main objective of the MAD is to increase market integrity, maintain investor confidence, and protect the overall stability of the financial system in the EU.
The revised MAD II has further strengthened the EU's ability to detect and prevent market abuse, especially with the introduction of stricter sanctions and the expansion of its scope to cover new financial instruments and techniques.