-Maintaining confidence in the integrity of the market will be crucial to ensuring the capacity of our securities markets and future pan-European trading platforms to attract investors from all over the world. While the existence of potential threats to the integrity of EU markets has been widely recognised no legislative action, apart from the Insider Dealing Directive 85/592/EEC, has been taken to date.
However, Commission recommendation 77/534/EEC “Concerning a European Code of Conduct relating to Transactions in Transferable Securities” already recognises the potential dangers arising from market manipulation and provides a definition of it. The Code also contains a number of principles concerning not only specific activities which would qualify as market manipulation but also “persons” who because of their position are the most likely candidates for market manipulation.
The objective of the new directive would be then to enhance market integrity and investors confidence by reducing the possibility of market participants to rig EU securities markets. There is a widely shared perception that there is plenty of room for improvement in this area, specially in the case of cross-border transactions. The Commission proposal for a directive to tackle market manipulation will be built on the experience accumulated by the Member States (specially from those which have already legislation to fight against these practices) and the industry and on the work of FESCO (the Forum of European Securities Commissions). The input to be provided by the European industry will be done through the Forum Group.
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