CESR Chairman, Arthur Docters van Leeuwen, commented:
"The Market Abuse Directive is the first Lamfalussy Directive and stands as a testament to the efficacy of the process designed by the Committee of Wise Men. The speed and accuracy with which CESR's advice has become legislation, is a tribute to the quality of the work done by all those involved in the drafting process, both within CESR and the Commission. The constructive support from the Council, in the form of the European Securities Committee (ESC), and the European Parliament, whose combined efforts to reach agreement on the final text have contributed greatly to the quality of the legislation ultimately adopted. There can be no doubt that the success of the outcome also reflects the value of extensive consultation with stakeholders and its key role in the Lamfalussy process."
The advice from CESR upon which the Commission has based its legal text was produced by the CESR Expert Group on Market Abuse under the Chairmanship of Professor Stavros Thomadakis, Chairman of the Hellenic Capital Markets Commission.
Mr Thomadakis said that:
"A key principle established in the EU's level 1 Directive is the need to enhance the efficiency, transparency and integrity of Europe's financial markets for all participants while ensuring that the imposition of additional regulatory requirements upon those participants is appropriate and proportionate. It is therefore pleasing to see that this balance underpins this level 2 legislation which is so closely based on CESR's advice. Sufficient legal certainty and clarity has been provided with regard to confidentiality, disclosure and the creation of records but excessive and onerous new requirements have not been imposed. I am sure that this package of Level 1 and Level 2 EU Legislation will greatly enhance investors' confidence in Europe's Financial Markets."
This implementing legislation, which will come into force at the latest in October 2004, defines further what will be considered to constitute market abuse and clarifies the confidentiality obligations on issuers and others who generate inside information (2003/124/EC). The legislation sets out the framework for the fair presentation of investment recommendations and the disclosure of conflicts of interest (2003/125/EC). Finally, it produces detailed rules for the creation of Europe-wide safe harbours for share buy-backs and the stabilisation of new issues (2273/2003).
