Part B Commentary, 1 General Provisions, Art.6: Exemption for monetary and public debt management activities and climate policy activities

Abstract

This chapter analyses Article 6, which allows for a broad exemption from the Market Abuse Regulation for certain public entities. Since Article 2 states that the Market Abuse Regulation applies to all financial instruments admitted to certain markets, it also covers financial instruments being issued by public entities. While there is a need for a prohibition of insider dealing and market manipulation regarding financial instruments being issued by public entities, an unlimited application of the Market Abuse Regulation also creates a significant risk for public entities and their representatives to violate these prohibitions. This is where Article 6 comes in. However, the value of such a privilege is doubtful since it creates a significant risk for market abuse in the markets for these financial instruments, and therefore a higher risk of market failure.