ESMA Guidelines and Recommendations

ESMA issues Opinion on inside information disclosure under the Market Abuse Regulation

ESMA Guidelines and Recommendations

Date: 07 April 2016

On 17 June 2016, the European Securities and Markets Authority (ESMA) issued an Opinion in response to a notification by the European Commission about intended changes on a draft Implementing Technical Standard (ITS) on the disclosure of inside information under the Market Abuse Regulation.

The ITS specify the technical means for disclosure of inside information by issuers of financial instruments and emission allowance market participants (EAMP) and require that information is explicitly marked as inside information and actively disseminated to the media. The Commission proposes that for EAMPs who are also subject to disclosure obligations under the Regulation on Energy Markets Integrity and Transparency (REMIT), compliance with REMIT’s disclosure requirements is sufficient for disclosing inside information under MAR.

In its Opinion, ESMA does not agree with the amendments proposed by the Commission. ESMA considers that the two requirements that the Commission is intending to eliminate (the marking and dissemination of inside information) while reducing slightly the costs of the disclosing companies, would put investors at a disadvantage.

For a copy of the Opinion please see here.