04 December 2013

Market Abuse Regulation: ESMA Discussion Paper on possible implementing measures

Harvey Knight
Partner | UK

The European Securities and Markets Authority (ESMA) has published a Discussion Paper setting out its initial views on the implementing measures it is required to develop under the Market Abuse Regulation (MAR).

The MAR implementing measures takes the form of delegated acts of the European Commission, regulatory technical standards (RTS) and guidelines and are central to the new EU market abuse and insider dealing regime as they set out how MAR’s scope is to be implemented in practice by market participants, trading platforms, investors, issuers and persons related to financial markets.

The Discussion Paper, which is based on the level 1 compromise text of MAR that was agreed by the Commission, the European Parliament and the Council of the EU in trialogue on 24 June 2013 covers the ten areas of MAR where ESMA is required to provide input. These include:

  • conditions to be met by buyback programmes and stabilisation measures to benefit from the exemption from market abuse prohibitions;
  • arrangement and procedures required for market soundings, from the perspective of both the market participants (generally sell side firms) conducting market soundings and the participant being sounded out;
  • indicators and signals of market manipulation;
  • criteria to establish accepted market practices;
  • arrangement, systems and procedures to put in place for the purpose of suspicious transactions and order reporting as well as content and format;
  • issues relating to public disclosure of inside information and the conditions for delay;
  • format for insider lists;
  • issues concerning the reporting and public disclosure of managers’ transactions;
  • arrangements for fair presentation and disclosure of conflicts of interests by producers and disseminators of investment recommendations; and
  • reporting of violations and related procedures.

Stakeholders are invited to respond to proposals before 27 January 2014 and ESMA will consider responses in the first quarter of 2014 and will further consult on its draft technical advice on delegated acts in spring 2014. It will also carry out a full consultation on its draft RTS, although the timing for this consultation will depend on the date of publication of MAR in the Official Journal.

Category: Article