What commonly characterizes market abuse or insider dealing?

Using non-public information for profit is a hallmark of market abuse or insider dealing. This practice involves taking advantage of confidential information that is not available to the general public to execute trades that lead to a financial gain. It undermines the principles of fair trading and market integrity, as it creates an uneven playing field where individuals with inside information can profit at the expense of other investors who do not have access to such information.

Market abuse is prohibited under financial regulations as it erodes trust in financial markets. Regulatory authorities monitor transactions and promote transparency to prevent these unethical practices. In contrast, reputable business practices, regulation compliance, and community engagement in finance—while important in their own rights—do not directly relate to the manipulative behaviors associated with insider trading. Thus, the use of non-public information for profit distinctly captures the essence of market abuse.