CESR has issued a “FAQ” Document on Accepted Market Practices with regard to the Market Abuse Directive which came into effect on 12 October 2004. In the event of a person manipulating a market, the Directive provides a defence if the transaction was legitimate and in accordance with market practices accepted by the competent authority, referred to as 'Accepted Market Practices' (AMPs).
The decision to accept any given market practice as an ‘AMP’ applies only to the practice in question in relation to a specific national market. This reflects the fact that the characteristics of each market may differ and as such, a particular practice may well be appropriate for one market but inappropriate for another where the conditions differ.
The competent authority must in particular consult as appropriate relevant bodies such as representatives of issuers, financial services providers, consumers, other authorities and market operators before officially accepting an AMP.
Accepted Market Practices - Frequently Asked Questions
© CESR - Committee of European Securities Regulators
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