The EBF supports the fight against market abuse. The introduction of greater harmonisation in this area is particularly welcomed. However, the review of the market abuse framework has not achieved sufficient legal certainty.
The proposed Market Abuse Regulation (MAR) should restrict its scope to instruments admitted to trading on regulated markets, MTFs and OTFs designated by the European Securities and markets Authority (ESMA) on the basis of criteria specified in the Regulation. ESMA should coordinate, with the cooperation of national competent authorities, the creation of a consolidated list of instruments traded across all relevant EU trading facilities.
The proposed definition of inside information in article 6(1)(e) and 6(3) greatly expands the range of information that could be considered as inside. Co-legislators should clarify that information would only be considered “inside” if it is price sensitive, hence deleting article 6(1)(e).
MAR should be amended to make clear that it is legitimate for a person to deal in financial instruments where the inside information does not have a material influence on the decision to deal. Furthermore, MAR should be amended to include existing defences included in the Market Abuse Directive (MAD) concerning the use of inside information.
The EBF supports that the existing definition of market manipulation covers “any other behaviour” so long as comprehensive, indicative examples of behaviour that shall be considered as market manipulation are provided. The proposed prohibition of attempts to engage in market manipulation is supported. Explicit mention to manipulative strategies such as quote stuffing, layering and spoofing are welcomed.
The Federation welcomes a degree of harmonisation with regard to the consideration of insider dealing and market manipulation as criminal offences.
Full position
© EBF
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