MARKET ABUSE IN MODERN FINANCIAL SYSTEMS: DETECTION, REGULATION, AND ENFORCEMENT

Abstract

Market abuse, encompassing insider trading and market manipulation, poses significant risks to the fairness and transparency of financial markets. This article explores the evolution of market abuse regulation across different jurisdictions, evaluates the effectiveness of enforcement mechanisms, and highlights emerging challenges such as high-frequency trading and cross-border violations. Drawing from international literature and regulatory practices, the study finds that while legal frameworks have become more robust, enforcement remains inconsistent. The article concludes by recommending enhanced surveillance technologies, cross-border cooperation, and stronger penalties to improve deterrence and maintain market integrity.