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EU require reporting of suspicious orders and transactions

The Council of the European Union announced that its Permanent Committee of Representatives (COREPER) has approved a compromise on the proposed Market Abuse Regulation (MAR).

The compromise agreement is set out in the fourth column of the table included in the note (headed the "25 June Package Text") and in the annex to the note.  This makes clear that any person professionally arranging or executing transactions in financial instruments shall establish and maintain effective arrangements, systems and procedures to detect and report suspicious orders and transactions.  Whenever such a person has a reasonable suspicion that an order or transaction in any financial instrument, whether placed or executed on or outside a trading venue, might constitute insider dealing, market manipulation or an attempt to engage in
insider dealing or market manipulation the person shall notify the competent
authority without delay.

The agreement remains subject to a technical alignment following the outcome of discussions on MiFID II relating to the cross references in MAR to MiFID II legislation.  Political agreement on MAD will enable the Presidency to start negotiations with the Parliament on the proposed Directive on criminal sanctions for insider dealing and market manipulation (CSMAD), with the aim of adopting both CSMAD and MAR at first reading. 

 Related Links:

http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/137623.pdf

Council note

http://register.consilium.europa.eu/pdf/en/13/st11/st11384.en13.pdf

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