The Market Abuse Directive came into effect on 12 October 2004. In the event of a person manipulating a market, the Directive (2003/6/EC in Article 1 (5)) provides a defense if the transaction was legitimate and in accordance with market practices accepted by the competent authority – these are often referred to as ‘Accepted Market Practices’ (AMPs).
The decision to accept any given market practice as an AMP applies only to the practice in question in relation to a specific national market. This reflects the fact that the characteristics of each market may differ and as such, a particular practice may well be appropriate for one market but inappropriate for another where the conditions (such as the market size etc.) differ.
Article 2 of Directive 2004/72/EC implementing the Market Abuse Directive describes the non-exhaustive factors that a competent authority should take into account before deciding whether or not to accept a market practice. Article 3 of Directive 2004/72/EC sets out the process that the competent authority must follow in accepting any given market practice. The competent authority must in particular consult as appropriate relevant bodies such as representatives of issuers, financial services providers, consumers, other authorities and market operators before officially accepting an AMP.
To increase transparency and in accordance with ESMA’s obligations set out in the Directive 2004/72/EC, those AMPs which have been accepted by a national authority can be found below in the section Documents.
Links to useful ‘core' reference documents in relation to Accepted Market Practices and the Market Abuse Directive
Directive 2003/6/EC of 28 January 2003 on insider dealing and market manipulation (market abuse)
Commission Regulation (EC) No 2273/2003 of 22 December 2003 implementing Directive 2003/6/EC as regards exemptions for buy-back programmes and stabilisation of financial instruments
Directive 2003/124EC of 22 December 2003 implementing Directive 2003/6/EC of the European Parliament and of the Council as regards the definition and public disclosure of inside information and the definition of market manipulation
Commission Directive 2004/72/EC of 29 April 2004 implementing Directive 2003/6/EC as regards accepted market practices, the definition of inside information in relation to derivatives on commodities, the drawing up of lists of insiders, the notification of managers' transactions and the notification of suspicious transactions
Market Abuse Directive - Level 3 – first set of CESR guidance and information on the common operation of the Directive (Ref. CESR/04-505b)
Market Abuse Directive - Level 3 – second set of CESR guidance and information on the common operation of the Directive
Market Abuse Directive - Level 3 – third set of CESR guidance and information on the common operation of the Directive