Cesr: More market abuse guidance needed

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PARIS - The Committee of European Securities Regulators (Cesr) has released its third set of guidance and information on the European Commission's Market Abuse Directive, but says more might still be needed.

The document follows Cesr's second issuance of guidance on the directive in July 2007, at which point it was confirmed Cesr would issue a second stream of Level 3 guidance work, resulting in the new paper.

Cesr's paper includes chapters on suspicious transaction reports (STRs), insider lists, stabilisation and buy-back programmes, and the two definitions of inside information, after a previous consultancy paper provoked industry queries.

The paper is a conclusion to two separately released consultation papers: the first on insider lists and STRs, and the second on stabilisation and the definition of insider information.

The first approach is often viewed as reflecting shareholders' property rights in information, and rests on the existence of fiduciary relationships.

The second notion emphasises equality of access to information about a company by all participants in a securities market and sets aside the property concept.

Cesr's guidance includes a feedback statement on the two consultations, together with the reminder that further guidance might be needed.

The guidance can be read here.