12 July 2007

CESR second set of Guidance on Operation of MAD

CESR published its second set of guidance on the implementation of the Market Abuse Directive. CESR developed a common understanding of the following aspects of the Directive and associated issues concerning market abuse. It provides among others a non-exhaustive list of indicative types of events or information which may constitute inside information, and gives illustrative examples of the two circumstances where the Directive generally recognises a potential legitimate delay of disclosure of insider information.

It also covers what can be defined as a client’s pending order and includes factors to be used in an assessment of when inside information would be involved.
Finally to reduce the burdens on issuers that are subject to the jurisdiction of more than one EEA Member State with respect to insider list requirements, CESR is recommending that the relevant competent authorities recognise insider lists prepared according to the requirements of the Member State where the issuer in question has its registered office, thus leading to a mutual recognition system.

Press release
Guidance

© CESR - Committee of European Securities Regulators