Market abuse: The new challenges further to ESMA’s technical advice to the European Commission on the review of the Market Abuse Regulation

Abstract

In September 2020, ESMA issued its technical advice to the European Commission on a potential review of the European Union (EU) Market Abuse Regulation. This paper describes ESMA’s main proposals for a legislative change and the relevant rationale, also vis-à-vis the feedback received to the public consultation. It also analyses why, in several instances, ESMA did not propose a legislative change to the European Commission, discussing the alternative tools at ESMA’s disposal and the Authority’s commitment to issue further guidance to the market participants. The paper also highlights the several instances where ESMA, whilst not making any express proposal for a legislative change, took the opportunity to express its views on number of grey areas that still call for a regulatory clarification. For each of the main areas touched by the ESMA’s advice are highlighted the rationale and the implications for supervised entities and investors.