July 2010

LSEG Response to Commission CP on the Market Abuse Directive

The London Stock Exchange Group has responded the European Commission’s Consultation on a revision of the Market Abuse Directive (MAD). 

We welcome the review of the Market Abuse Directive, and the opportunity this brings to ensure we have a robust and effective framework for tackling market abuse in Europe.  We agree with the Commission that the provisions of MAD which apply to secondary market trading activity (being Articles 1 to 5 on insider dealing and market manipulation), should be extended to MTFs.   However, we believe that care must be taken regarding the provisions in MAD which apply to issuers with respect to disclosure obligations.  In this area, a key aspect of the Commission's review is to ensure that an 'exchange regulated market' such as the AIM market can continue to operate under its existing regulatory framework, which is tailored specifically for small and growing companies.  We also do not agree with an adapted market abuse regime for smaller companies within the Regulated Market framework. This may create confusion amongst issuers and investors as well as compromise investor protection principles.

Downloads
LSEG Response to Commission CP on the Market Abuse Directive (file pdf - 2 MB)