Consulation on MAD Level 3

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CESR is continuing in its efforts to prepare ground for convergent implementation and application of the Market Abuse regime by ensuring that a common approach to the operation of the Directive takes place throughout the EU amongst supervisors. In July 2007, CESR confirmed that CESR-Pol will undertake another stream of Level 3 work on market abuse on the basis of the mandate given by CESR to CESR-Pol concerning Level 3 of the Market Abuse Directive (MAD) (Ref. CESR/04-10c) which should be read in conjunction with the Terms of Reference of CESR-Pol (Ref. CESR/06-114 replacing CESR/02-070b) and in the light of the responses to the Call for Evidence (Ref. CESR/06-664).

In its Work Program (Ref. CESR/07-416), CESR informed the market about the issues to be covered in its 3rd set of guidance regarding the common operation of the Market Abuse Directive (MAD). The first two issues (requirements for insider lists and suspicious transaction reports) have already been considered in the earlier consultation paper (Ref. CESR /08-274). As that consultation paper made clear, the guidance relating to stabilisation and buy-back programmes was to be consulted on later. Ultimately, all issues will be integrated into one final set of a 3rd set of Guidance. Thus, CESR intends to prepare one feedback statement for both its consultation papers.

Interested parties are invited to submit their comments on the draft guidance set out in this paper and send their responses via CESR's website (www.cesr.eu) under the sections

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Confederation of Danish Industry
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CFA Institute Centre for Financial Market Integrity
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City of London Law Society
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Banking Italian Banking Association
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Issuers Union of listed companies
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