ACT supports extension of Market Abuse Directive

The European Commission has published a review of the Market Abuse Directive (MAD). The directive currently covers disclosure of inside information, insider trading and market manipulation in regulated markets.

The proposals are to extend the scope to include additional markets including MTFs (Multilateral Trading Facilities) and to refine and extend some specifics such as the definition of inside information for Commodity Derivatives, bring in an offence of attempts at market manipulation and bring derivatives within scope where the underlying instrument is traded on a market that is covered by MAD.

The ACT has responded to the public consultation and broadly welcomed the measures which should improve integrity in the financial markets. There are, however, some details which will require carefully crafted definitions. The ACT has also proposed that the UK rules prohibiting trading whilst in possession of Relevant Information Not Generally Available (RINGA) should be applied across the whole of the EU.

The ACT published The New Market Abuse and Disclosure Regime in the UK - A Guide for Listed Companies to coincide with the implementation of the MAD in the UK in 2005.