EU instigates new rules to fight insider dealing and market manipulation

Source: European Commission

A revamped EU legal framework, applicable as of 3 July, will ensure even more efficient, transparent and trustworthy European financial markets.

This new rulebook, will increase investor protection and confidence by allowing deeper and more integrated financial markets, and contribute to the creation of the Capital Markets Union. The new framework will strengthen the fight against market abuse across commodity and related derivative markets, explicitly ban the manipulation of benchmarks, such as LIBOR, and reinforce the investigative and sanctioning powers of regulators.

The updated rulebook strengthens and replaces the existing EU rules on market integrity and investor protection, first adopted in 2003. It consists of the Market Abuse Regulation and the Directive on Criminal Sanctions for Market Abuse.

Jonathan Hill, EU Commissioner responsible for Financial Stability, Financial Services and Capital Markets Union said: "I am very pleased that our revamped rulebook against insider dealing and market manipulation is now taking effect. Having in place clear rules against misbehaviour on Europe's financial markets is key for their efficient functioning and investor protection."

Vera Jourová, Commissioner responsible for Justice, Consumers and Gender Equality said: "Administrative authorities will now have greater powers to investigate market abuse and to impose significant fines, while those found guilty of market abuse will be deterred by the prospect of facing jail."

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