Opinion of the Commission pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a Directive of the European Parliament and of the Council on insider dealing and market manipulation (market abuse) amending the proposal of the Commission pursuant to Article 250 (2) of the EC Treaty
Date: 2002-12-11
Institutions: European Commission
Subjects: financial legislation, financial market, insider trading, stock-exchange transaction

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 11.12.2002
COM(2002) 724 final

2001/0118 (COD)

OPINION OF THE COMMISSION

pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty,
on the European Parliament's amendments
to the Council's common position regarding the
proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

ON INSIDER DEALING AND MARKET MANIPULATION (MARKET ABUSE)

AMENDING THE PROPOSAL OF THE COMMISSION
pursuant to Article 250 (2) of the EC Treaty

OPINION OF THE COMMISSION

pursuant to Article 251 (2), third subparagraph, point (c) of the EC Treaty,
on the European Parliament's amendments
to the Council's common position regarding the
proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

ON INSIDER DEALING AND MARKET MANIPULATION (MARKET ABUSE)

1.

HISTORY

Date of transmission of the proposal to the EP and the Council
(document COM(2001) 281 final – C5/2001/262 –
2001/0118(COD)1:

01 June 2001

Date  of  the  opinion  of  the  European Economic  and  Social
Committee2:

17 January 2002

Date of the opinion of the European Parliament, first reading3:

14 March 2002

Date of adoption of the common position4:

19 July 2002

Date of the opinion of the European Parliament, second reading5

24 October 2002

2.

SUBJECT OF THE PROPOSAL

The aim of the proposed Directive is to ensure the integrity of European financial markets, to
establish and implement common standards against market abuse throughout Europe, and to
enhance investor confidence in these markets.

To ensure that integrated European financial markets will be well protected, a common legal
framework  is  needed  on  the  prevention,  detection,  investigation  and  punishment  of  market
abuse. Such a framework needs to ensure certainty among market participants over concepts
and enforcement, thereby setting a level playing field for all economic actors in each Member
State.

Therefore, the main objectives of the Directive are:

–  establishing a European wide effect based regime against market abuse;

1

2

3

4

5

OJ. C 240 E, 28.08.2001 p. 265.
OJ. C 80, 03.04.2002 p. 61
Report A 5/2002/69/
…..
…..

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–  committing professionals strongly to transparency and equal treatment;

–  establishing a single administrative authority in each Member State;

–  introducing a minimum set of powers for administrative authorities;

–  introducing administrative sanctions in each Member State;

–  a comprehensive framework for co-operation of competent authorities.

3.

THE COMMISSION'S OPINION ON PARLIAMENT'S AMENDMENTS

Summary

The  Parliament  has  amended  the  Council  common  position  with  5  amendments.  The
Commission accepts all these Parliament's amendments, i.e. Amendments 1 to 5.

Parliament's amendments in second reading

3.1. Amendments accepted by the Commission

All amendments are accepted by the Commission.

Amendment 1, modifying Recital 26, clarifies that manager dealings have to be disclosed on
an individual basis at least, linked to amendment 4 below.

Amendment 2, modifying Recital 36, requires adequate financing of competent authorities by
Member States.

Amendment  3,  modifying  Article  1  (1),  introduces  explicitly  frontrunning  on  commodity
derivative markets into the scope of the Directive.

Amendment 4, modifying Article 6 (4), clarifies that manager dealings have to be disclosed
on an individual basis at least, linked to amendment 1 above.

Amendment  5,  modifying  Article  6  (10),  clarifies  that  rules  governing  the  profession  of
journalists,  including  self-regulation,  have  also  to  be  taken  into  account  when  establishing
implementing measures through comitology procedure.

3.2. Amendments or parts of amendments not accepted by the Commission

None

4.

CONCLUSION

In  accordance  with  Article 250(2)  of  the  Treaty,  the  Commission  amends  its  proposal
accordingly.

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