Brussels, 04/07/2016 (Agence Europe) - On Sunday 3 July, the new legislative framework to step up the fight against abuses on the markets for raw materials and related derivative instruments entered into force (see EUROPE 11438). This framework also explicitly forbids the manipulation of benchmarks, such as LIBOR, and reinforces the investigative and sanctioning powers of the regulators.
“Having in place clear rules against misbehaviour on Europe's financial markets is key for their efficient functioning and investor protection”, said the outgoing Commissioner for Financial Services, Jonathan Hill.
The new directive on criminal sanctions applicable to market abuse adds to the regulation on market abuse. It requires the member states to introduce common definitions of the criminal offences of insider dealing and market manipulation, and to impose maximum criminal penalties for the most serious market abuse offences. The member states have to make sure that such behaviour, including the manipulation of benchmarks, is a criminal offence, punishable with effective sanctions everywhere in Europe. (Original version in French by Elodie Lamer)