Commission Announces Proposals for New Market Abuse Legislation
October 20, 2011
On the same day that it announced the new MiFID regime, the European Commission also published its proposals for a new regulation and directive devoted to tackling the issue of market abuse.
Among the key features of the proposals are:
- criminal sactions for traders who have incited, aided or abetted market abuse;
- applicability to a wider range of financial instruments and contracts;
- broadening of the definition of market manipulation; and
- a clearer definition of 'inside information'.
The proposals will now pass to the European Parliament and the Council for negotiation and adoption. It is expected that the regulation will become applicable two years after its entry into force and that the directive will be transposed into the laws of Member States within two years.