EU consults on how to implement market abuse rules for carbon players

Market participants have until October to comment on how to implement rules that obligate them to report suspicious trades under EU regulation to combat market abuse and manipulation.

The European Securities and Markets Authority (ESMA) launched a consultation on the Market Abuse Regulation (MAR) on Wednesday, in addition to the already ongoing consultations on the update Markets in Financial Instruments Directive and Regulation. MAR came into force on 2 July 2014.

Specifically, the latest consultation paper focuses on technical advice for MAR. “This includes minimum thresholds for the purpose of the exemption for certain participants in the emission allowance market from the requirement to publicly disclose inside information,” ESMA said on the European Commission’s climate action website. The MAR consultation closes on 15 October 2014 and is available here .

The consultation covers five areas relating to the implementation of MAR, and poses a total of 19 questions. The sections covered include how to specify indicators of market manipulation; minimum thresholds to exempt participants in the carbon market from having to publicly disclose inside information; identifying which authority is best placed to notify the authorities of any delays by traders to publicly disclose inside information; how to report infringements; and special rules for managers’ transactions.

With respect to the already-ongoing consultations Markets in Financial Instruments Directive, or MiFID, which redefines EU allowances as financial derivatives, interested parties can respond to the technical advice consultation paper here as well as the draft technical standards here ; both by 1 August 2014. Marie-Louise du Bois