Market Integrity

Opinion on the intended accepted market practice on liquidity contracts notified by the CMVM

Link to the revised template describing the Portuguese AMP as established by a decision of the Portuguese CMVM of 9 November 2017 and published in accordance with Article 2 (3) of Commission Delegated Regulation  (EU) 2016/908: https://www.esma.europa.eu/sites/default/files/cmvm_annex_-_amp_on_liquidity_contracts.pdf

The European Securities and Markets Authority (ESMA) has updated its Questions & Answers (Q&A) document regarding the implementation of the Market Abuse Regulation (MAR).The European Securities and Markets Authority (ESMA) has updated its Questions & Answers (Q&A) document regarding the implementation of the Market Abuse Regulation (MAR).

The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of MAR and its implementing measures. Today’s Q&A include an update of the Q&A clarifying the scope of firms subject to the MAR provision to detect and report suspicious orders and transactions and new detailed answers on:

  • the scope of the financial instruments subject to the market sounding regime under MAR; and
  • the persons subject to the insider list requirements.

MAR is intended to guarantee the integrity of European financial markets and increase investor confidence. Any unlawful behaviour in the financial markets is prohibited. The concept of market abuse typically consists of insider dealing, unlawful disclosure of inside information, and market manipulation.

The European Securities and Markets Authority (ESMA) has issued an official opinion agreeing to the renewal of the emergency short selling prohibition, for a period of two month, by the Comisión Nacional del Mercado de Valores (CNMV) on net short positions in Liberbank, S.A. (Liberbank) shares under the Short Selling Regulation.

The measure is expected to enter into force on 12 July 2017 at 23:59 CET, and to be applicable until 12 September 2017 at 23:59 CET. It temporarily prohibits transactions in any shares, either directly or through related instruments and irrespective of the venue or market in which the transactions leading to those positions are conducted. The measure does not apply to market-making activities, trading in index-related instruments or short positions entered into to hedge positions on convertible bond or subscription rights.

The short selling measure applies to any natural or legal person, irrespective of their country of residence.

ESMA considers that the current circumstances related to Liberbank constitute an adverse scenario for the Spanish financial system, and that the proposed measure is appropriate and proportionate to address the threat in the Spanish financial markets.

The European Securities and Markets Authority (ESMA) issues today a public consultation regarding its future technical advice to the European Commission (EC) on the Short-Selling Regulation (SSR).

ESMA publishes this consultation paper to seek the views of market participants on the three main elements of its advice to the EC:

  • the scope and functioning of the exemption for market making activities;

  • the procedure for imposing a short term ban on short-selling in case of a significant fall in price of a financial instrument; and

  • the transparency of net short positions, and the related reporting and disclosure requirements.

ESMA will evaluate to what extent the SSR has achieved its original objectives in terms of relevance, effectiveness, coherence, and efficiency. To improve the Regulation, the technical advice will propose potential changes to the legal framework.  

In order to prepare its technical advice, ESMA is inviting investors, market participants and any other interested stakeholders to provide responses to the questions outlined in the consultation paper and any other issues they may want to raise.

ESMA expects to deliver its final advice to the EC by 31 December 2017. This technical advice is one of the follow up actions announced by the EC in its Communication on the Call for Evidence on the EU regulatory framework for financial services published on 23 November 2016.

The closing date for responses is 4 September 2017.

Consultation on the evaluation of certain aspects of the Short-Selling Regulation

Responding to this paper

ESMA invites comments on all matters in this paper and in particular on the specific questions summarised in Annex 1. Comments are most helpful if they:

  • respond to the question stated;
  • indicate the specific question to which the comment relates;
  • contain a clear rationale; and
  • describe any alternatives ESMA should consider.

ESMA will consider all comments received by 4 September 2017 COB.

The European Securities and Markets Authority (ESMA) has updated today its Questions & Answers (Q&A) document regarding the implementation of the Market Abuse Regulation (MAR).

The purpose of this Q&A document is to promote common supervisory approaches and practices in the application of the MAR and its implementing measures. Today’s Q&As include a new detailed answer on closely related persons in the context of manager’s transactions.

MAR is intended to guarantee the integrity of European financial markets and increase investor confidence. Any unlawful behaviour in the financial markets is prohibited. The concept of market abuse typically consists of insider dealing, unlawful disclosure of inside information, and market manipulation.

The European Securities and Markets Authority (ESMA) has published its Q&A on practical questions regarding the implementation of the Benchmarks Regulation (BMR).

The Q&A include two answers regarding the transitional provisions under the BMR, clarifying which benchmarks supervised entities will be allowed to use after 1 January 2018 thanks to the transitional provisions.

The purpose of this document is to be a practical convergence tool used to promote common supervisory approaches and practices in the application of the BMR. It should also help investors and other market participants by providing clarity on the requirements. ESMA will periodically review these Q&A and update them where required.