Brussels, 17/11/2003 (Agence Europe) - The European Commission has launched further consultation on measures for implementation of the Market Abuse Directive. Adopted in December 2002 and in force since April 2003, the directive is aimed at combating insider dealing and other forms of market manipulation.
In a working document, the Commission specifies the principles that must followed by the national control authorities in order to assess whether diffusion of information comes under "normal market practice" or whether it is insider dealing and "market manipulation" (Article 1 par. 1/2 of the Directive). These guidelines suggest among other things that the level of transparency of the market should be assessed as well as its degree of liquidity or the impact of these practices on supply and demand. Also, the Commission considers that the relevant authorities should regularly revise their positions on accepting practices, or not, and not systematically reject new practices on the market. The document specifies how lists of "insiders" should be completed, updated and diffused. They should indicate above all the identity, function, reasons for which a person is included on the list and the dates for updating the list of insiders. The document states, moreover, information to be provided on persons discharging managerial responsibilities within an issuer of financial instruments, and procedures for notification of doubtful operations.