Market Abuse Directive

The Directive ("Directive") aims at increasing and stabilising investors’ confidence in the European Union securities market, making it more competitive and contributing to its completion and full transparency. The Directive defines both the concept of "insider dealing" and of "market manipulation" and covers a wide scope of financial instruments thus reflecting the increasing number of financial products.

Generally, any financial instrument admitted to trading on a regulated market (within the meaning of Directive 93/22/EC on investment services in the securities field) in at least one Member State, or for which a request for admission to trading on such a market has been made, falls within the scope of its regulation. Prohibitions provided for in the Directive shall not apply to trading in company’s own shares or to the stabilisation of a financial instrument provided, however, that such trading is carried out in accordance with implementing measures to be adopted by the Commission.

Under Article 5 of the Directive, any person is prohibited from engaging in market manipulation. Member States are required to ensure that issuers of financial instruments inform the public as soon as possible of inside information directly relevant to them (including posting such information on the Internet for an appropriate period of time). Issuers may postpone such disclosure for legitimate reasons. However, Member States may require that an issuer inform without delay the competent authority of such decision. The Directive imposes an obligation on managers of an issuer or persons closely associated with them to notify to the competent authority the existence of transactions conducted on their own account relating to shares of the respective issuer. Public access to such information is to be made available.

Each Member State is obliged to designate a single administrative authority to ensure that the provisions adopted pursuant to this Directive are applied. The Directive also encourages further co-operation amongst national supervisory authorities while they are to be supported and extended in terms of competence. Council Directive 89/592/EEC on coordinating regulations on insider dealing is repealed as of 12 April 2003. Member States are obliged to implement the Directive by 12 October 2004.

Separately, acceding Member States may, in duly substantiated cases, as provided under Article 55 of the Act of Accession, apply for temporary derogations from the Directive, as it was adopted between 1st November 2002 and the date of signature of the Treaty of Accession.