On 3 February 2015, the European Securities and Markets Authority (ESMA) published its technical advice to the European Commission on possible delegated acts under the Market Abuse Regulation (Regulation 596/2014) (MAR) in a Final Report.
The draft technical advice covers recommendations in the following areas:
- examples of practices that may constitute market manipulation as well as proposing additional indicators of market manipulation.
- minimum thresholds for the purpose of the exemption for certain participants in the emission allowance market from the requirement to publicly disclose inside information.
- how to determine to which regulator delays in disclosure of inside information need to be notified.
- clarification of the enhanced disclosure of managers’ transactions.
- clarification of the transactions that can be allowed by the issuer during a closed period when normally trading by managers is prohibited.
- procedures and arrangements to ensure sound whistleblowing infrastructures.
In some cases, ESMA has modified its technical advice in the light of comments received in its consultation in July 2014 on MAR.
Next steps
ESMA will send this technical advice to the European Commission for its consideration in drafting its implementing standards regarding MAR. ESMA’s regulatory technical standards (RTS) on MAR are intended to be delivered in July 2015. Under European law, these delegated acts should be adopted by the European Commission so that they enter into force 24 months after the entry into force of MAR. MAR entered into force on 2 July 2014 so the delegated acts would need to be in force by July 2016.
The Flaw 