The Spanish National Securities Market Commission (CNMV) informed on January 13, 2020 of its decision to render ineffective the criteria addressed to issuers of securities for their discretionary treasury stock transactions, published in 2013. These criteria consisted of a number of recommendations on trading conditions and transparency when carrying out discretionary treasury stock transactions (not performed within buy-back programs or under liquidity contracts).

Following entry into force of the European Market Abuse Regulation (Regulation 596/2014) and its full transposition into Spanish law, the CNMV now considers that those criteria on discretionary treasury stock transactions are scarcely compatible with that Regulation, therefore it has decided to consider them no longer valid and render them ineffective.

It also explained that every transaction for trading in own shares entails a risk for market integrity, thus making a restrictive approach reasonable in this sphere which limits the safe harbor regime to the two cases offered in the Regulation: stabilization and buy-back programs and market accepted practices (liquidity contracts).

Any trading with own shares that does not comply with these provisions will be subject to any measures that may be adopted by the CNMV to verify compliance with the prohibition of market abuse practices or insider trading contained in that EU Market Abuse Regulation.