The Financial Supervision Commission (FSC) has adopted 3 - level guidance on the common operation of the Market Abuse Directive issued by the Committee of European Securities Regulators (CESR).

The FSC’s decision is a response to recent developments in the financial markets sector and is designed to counteract issues of price manipulation and disclosure of misleading information.

The CESR guidance is intended to protect the integrity of financial markets and increase investor confidence in securities and derivatives. It contains:

  • Guidance on what CESR members consider ‘market manipulation’ and accepted market practice
  • A common format for reporting suspicious transactions
  • Analysis of the definition of ‘inside information’( ie when it is legitimate to delay disclosure of inside information)
  • Harmonized requirements for maintaining insiders lists and implementing a system for mutual recognition of these across multiple jurisdictions

Law: Directive 2003/6/EO of the European Parliament and of the Council of 28 January 2003 on Insider Dealing and Market Manipulation; Measures against Market Abuse with Financial Instruments Act