The Hammer and the Saw - A Short Critique of the Recent Compromise Proposal for a Market Abuse Regulation

13 Pages Posted: 26 Dec 2012 Last revised: 24 Jan 2013

See all articles by Jesper Lau Hansen

Jesper Lau Hansen

University of Copenhagen - Faculty of Law (FOCOFIMA)

Date Written: December 26, 2012

Abstract

The Market Abuse Directive comprises two very important instruments to make the securities markets function efficiently: a continuous disclosure obligation and a prohibition against insider dealing. The Directive is currently under reform and will be replaced by a Market Abuse Regulation. However, the most recent proposal for a Regulation appears to confuse the two different instruments, although they are quite distinct and should be used only for the purposes they are designed for. Exploring these purposes in the market context of securities trading, the nature and proper understanding of the two instruments are explored. It is shown that the present proposal contrary to the drafters’ intentions favours short-term speculators to the detriment of issuers and prudent investors interested in long-term viable investment.

Keywords: EU law, EU securities regulation, Financial Market Law, Market abuse, Information regulation

JEL Classification: K22

Suggested Citation

Hansen, Jesper Lau, The Hammer and the Saw - A Short Critique of the Recent Compromise Proposal for a Market Abuse Regulation (December 26, 2012). Nordic & European Company Law Working Paper No. 10-35. Available at SSRN: https://ssrn.com/abstract=2193871 or http://dx.doi.org/10.2139/ssrn.2193871

Jesper Lau Hansen (Contact Author)

University of Copenhagen - Faculty of Law (FOCOFIMA) ( email )

Studiestraede 6
Studiestrade 6
Copenhagen, DK-1455
Denmark

HOME PAGE: http://www.jur.ku.dk

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