Response to ESMA Consultation: Review of Market Abuse Regulation: 29 November 2019

On 3 July 2016, the majority of the provisions of the Market Abuse Regulation (“MAR”) came into effect in the E.U. and the U.K.  MAR harmonised the market abuse regime across the E.U. and expanded the scope of the core prohibitions against insider dealing, unlawful disclosure of inside information and market manipulation.

On 3 October 2019, the European Securities and Markets Authority (“ESMA”) issued a Consultation Paper as part of a review of certain aspects of MAR.  The FMLC submitted a response drawing attention to complexities in respect of two areas.  First, the FMLC urges that the definition of inside information is not amended.  While the current definition is not perfect, the expansion by MAR of the definition had several knock-on effects for market participants.  The market has, however, adapted to the change and adopted appropriate practices. Tweaking the definition so soon after the last set of amendments will increase legal uncertainty and cause market disruption. Second, the FMLC considers whether spot FX contracts should be brought within the scope of MAR.

The letter which the FMLC submitted to ESMA with the Consultation Response Form is available to download.