22 November 2001

ECB opinion on Market Abuse

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The ECB considers that the proposed directive constitutes an important step towards the harmonisation of the currently divergent national rules addressing market manipulation and insider dealing. On specific points, it makes the following comments:

The core definitions related to the purpose of the protection of market integrity should be clarified, so as to avoid any discrepancy between the various national laws of the Member States.

Consistency should be ensured between the proposed Directive and the future ISD, particularly regarding legal concepts used, and the allocation of responsibilities between the different parties.

Potential benefits could arise in a closer cooperation between the administrative authorities and the competent authorities in charge of supervising credit institutions, investment firms, insurance undertakings, and perhaps, collective investment undertakings to the extent that they are distinct from the designated administrative authorities.

It should be further considered how the pursuit of the convergence of supervisory practices could be best fostered to ensure a level playing field. A committee of representatives of the administrative authorities in charge of promoting convergence might be valuable.

See full ECB paper

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