The European Economic and Social Committee (EESC) has published its opinion on the proposed Market Abuse Directive and Regulation (MAD and MAR). It agrees with the proposal in principle, but has several concerns:

  • vague definitions and the delegation of detail to ESMA and Level 2 legislation are likely to cause legal uncertainty;
  • the proposals will impose heavy bureaucratic burdens on firms but this will not necessarily lead to improved regulation;
  • while it makes sense to extend the scope of existing rules to cover instruments traded outside regulated markets, the Commission should make clear its intended practical impact of the extension. Currently, it is unclear how OTC financial instruments are to come within the proposal. (Source: EESC publishes MAD opinion)