Doha: The Qatar Financial Markets Authority has recently unveiled the Code of Market Conduct, a pivotal framework aimed at regulating transactions among dealers in the Qatari financial markets. This initiative aligns with the Authority's strategic goals of fostering market development and enhancing participant confidence.
According to Qatar News Agency, the introduction of this Code is part of the Authority's ongoing efforts to bolster confidence in the trading system, safeguard securities owners and dealers, stabilize the financial markets, and mitigate associated risks. The Code is a legislative measure designed to promote fairness, competitiveness, and transparency among financial market participants, while also educating investors on ethical practices and how to avoid illicit activities.
The Code explicitly applies to deceptive or misleading acts in accordance with the Authority's legislation. It serves as a guideline, providing examples of prohibited behaviors in the market. Notably, this Code is the first of its kind issued by the Authority and targets ordinary investors and traders.
Key provisions of the Code highlight actions considered manipulative or misleading, such as promoting securities for ulterior motives, creating false impressions of demand or supply through deceptive order placements, and conducting transactions that give a misleading impression of trading activity. These provisions aim to curb practices that could mislead investors or manipulate market conditions.
The Code also outlines specific actions that could artificially fix or manipulate security prices, including executing orders with the intent to control reference prices, collusion to create unreal prices, and executing orders to manipulate market indicators. However, certain actions, like a company's buyback of its own shares or market maker activities, are not considered manipulative if conducted within the legislative framework.
In essence, the Code of Market Conduct is a significant step towards ensuring a transparent and fair financial market environment in Qatar, safeguarding the interests of all market participants.