Market Abuse Regime in Angola
Angola’s market abuse framework is established under the Securities Code and enforced by the Comissao do Mercado de Capitais (CMC). As BODIVA’s equity market grows — with 5 listed companies and 10,328 transactions recorded in 2024 — the integrity of price formation and investor confidence depends on effective prohibition and prosecution of insider trading, market manipulation, and other abusive practices.
Insider Trading
The Securities Code prohibits any person who possesses material non-public information (MNPI) from:
- Trading: Buying or selling securities on the basis of MNPI
- Tipping: Disclosing MNPI to any other person outside the normal course of their duties
- Recommending: Advising others to trade based on MNPI
Insiders include directors, officers, employees, and advisors of listed companies, as well as any person who obtains MNPI through their professional or business relationships. The prohibition extends to all securities traded on BODIVA.
Market Manipulation
The CMC prohibits activities that distort or are likely to distort the fair price formation of securities:
| Prohibited Conduct | Description |
|---|---|
| Wash Trading | Simultaneous buy and sell orders by the same person to create false trading volume |
| Spoofing | Placing orders with the intent to cancel before execution, creating false market signals |
| Price Manipulation | Transactions executed to artificially inflate or deflate a security’s price |
| Dissemination of False Information | Spreading misleading information to influence trading decisions |
| Front-Running | Trading ahead of a client order or material announcement |
CMC Enforcement Powers
The CMC has broad enforcement authority for market abuse violations:
- Administrative sanctions: Fines of up to Kz 500 million for entities and Kz 100 million for individuals
- Market bans: Temporary or permanent prohibition from trading on BODIVA
- License revocation: Withdrawal of broker, dealer, or fund manager licenses
- Criminal referral: Serious cases may be referred to the Procuradoria-Geral da Republica for criminal prosecution
- Disgorgement: The CMC may order the return of profits derived from abusive trading
Reporting Obligations
Licensed intermediaries and listed companies have obligations to support market abuse detection:
- Brokers must report suspicious orders and transactions to the CMC
- Listed companies must maintain insider lists and restrict trading during closed periods (typically 30 days before earnings announcements)
- Directors and senior managers must disclose their own transactions in the company’s securities within 5 business days
Closed Periods and Trading Restrictions
Listed company insiders are prohibited from trading during closed periods, which typically cover:
- 30 days before publication of annual or semi-annual financial results
- Any period during which MNPI exists regarding the company
- The period between a board decision on material events and the public announcement
Investor Protections
Investors who suffer losses due to market abuse may seek civil remedies through Angolan courts. The CMC also accepts complaints regarding suspected market abuse by any market participant.
For the full set of conduct rules, see CMC regulations.