WpHG

WpHG stands for Wertpapierhandelsgesetz, the German Securities Trading Act. It is a key piece of German financial market regulation that governs the trading of securities and the conduct of market participants within Germany’s securities markets. The act aims to protect investors, ensure market integrity, and promote transparent and orderly trading.

The scope of the WpHG covers providers of investment services (such as banks and other authorized financial institutions), market operators, and issuers of securities. It sets licensing and organizational requirements for investment firms, regulates the admission of securities to trading on regulated markets or multilateral trading facilities, and imposes disclosure and information duties on issuers and market participants. The act also addresses conduct of business standards, market transparency, and the operational rules governing trading venues.

A core area of the WpHG concerns market integrity. It prohibits insider dealing and market manipulation and provides rules on the handling of insider information, disclosure obligations, and the use of confidential information. Enforcement and supervision under the WpHG are primarily carried out by BaFin, with cooperation from the Deutsche Bundesbank in related financial market infrastructure matters.

Relation to European law is a feature of the WpHG, as it has been amended to reflect EU directives and regulations, including MiFID I and II and the Market Abuse Regulation. Through these amendments, the WpHG aligns German securities regulation with broader EU standards while retaining national specifics.

In summary, the WpHG shapes licensing, trading venue requirements, market transparency, and anti‑abuse provisions to safeguard the German securities market.