Rovas, Nikolaos

2015-09-27T05:57:10Z

https://repository.ihu.edu.gr//xmlui/handle/11544/285

The Notion of Insider Trading and Market Manipulation in E.U. Legislation

Insider trading in securities--Law and legislation

en

http://creativecommons.org/licenses/by-nc/4.0

2013-12

I. THE EVOLUTION OF EU LEGISLATION A. HARMONIZATION BASED ON E.C.J. CASE LAW APPROACH B. THE SINGLE EUROPEAN ACT 1986 (SEA) C. THE ADOPTION OF FSAP D. THE FOUR LEVEL APPROACH Da. The Two Committees Db. The Four Levels E. THE REGULATION AND DIRECTIVE PROPOSAL Ea. The Reasons i. OTC Markets ii. MFT iii. HFT iv. The LIBOR Scandal Eb. Objectives of the new Regulation i. Keeping pace with market developments ii. Reinforcing regulators' investigative and sanctioning powers iii. Reducing administrative burdens on SME issuers II. THE NECESSITY OF INSIDER TRADING/DEALING PROHIBITION AND THE UNDERLYING PRINCIPLES A.THE NECESSITY OF INSIDER TRADING/DEALING PROHIBITION Aa. The opinion against the prohibition Ab. The opinion for the prohibition B.THE UNDERLYING PRINCIPLES Ba. Investor/consumer protection Bb. Protection of competition/ fair market practices Bc. Transparency 4 Bd. Market efficiency Be. Integrity Bf. Due skill care and diligence Bg. Responsible and effective control of affairs with adequate risk-management systems III. INSIDER DEALING ELEMENTS A. THE STRUCTURE OF THE OFFENCE B. THE MEANING OF INSIDER C. THE INSIDE INFORMATION Ca. Precise nature Cb. Made Public Cc. Directly or indirectly related to one or more issuers of financial instruments or to one or more financial instruments Cd. Significant effect on the prices of those financial instruments or on the price of related derivative financial D. SUBJECTIVE ELEMENT Da. The distinction between primary and secondary insiders Db. The” Spector case” Dc. Critique IV. MARKET MANIPULATION A. DEFINITION Aa. The Market Abuse Directive Definition Ab. The Market Abuse Regulation Definition Ac. One more general definition Ad. The ECJ 22.03.2012 decision B. PRACTICES CONSIDERED TO BE MARKET MANIPULATION Ba. False/Misleading Transactions Examples i. Wash trades 5 ii. Painting the tape iii. Improper matched orders iv. Placing orders with no intention of executing them Bb. Price Positioning i. Marking the close ii. Colluding in the after market of an Initial Public Offer iii. Abusive squeeze iv. Creation of a floor in the price pattern v. Excessive bid-ask spreads vi. Trading on one market to improperly position the price of a financial instrument on a related market Bc. Transactions involving fictitious devices/deception i. Concealing ownership ii. Dissemination of false or misleading market information through media, including the internet, or by any other means (in some jurisdictions this is known as 'scalping') iii. Pump and dump iv. 'Trash and cash' v. Opening a position and closing it immediately after its public disclosure Bd. Dissemination of false and misleading information i. Spreading false/misleading information through the media ii. Other behaviour designed to spread false/misleading information iii. An Example iv. ECJ Jurisprudence on Dissemination of false and misleading information V. ENFORCEMENT AND SAFE HARBORS A. ENFORCEMENT 6 B. SAFE HARBORS REGARDING INSIDER DEALING Ba. Trading in own shares Bb. Obligations Arisen before the possession of the information Bc. Market Makers Bd. Access due to a Takeover bid Be. Disclosure in the normal course of the exercise of his employment, profession or duties C. SAFE HARBORS FOR MARKET MANIPULATION

Papadopoulos, Thomas

Kotsiris, Lampros

ihu

true