The Market Abuse Directive creates a harmonised framework for protecting the integrity of the financial markets by preventing insider dealing and market manipulation. It defines and prohibits both forms of market abuse and provides for a number of preventive measures such as prompt disclosure of inside information and management transactions or safeguards of impartiality of investment research.

Among other things, the directive acknowledges there are legitimate economic reasons for trading in own shares in ‘buy-back’ programmes and for stabilising a new securities issue and provides for “safe harbours” for such activities if certain conditions are met. IPMA and then ICMA have been active in giving feedback to the Commission on the appropriateness and workability of these conditions, both in the negotiation and implementation phase.

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