Final Report Draft technical standards on the Market Abuse Regulation 28 September 2015 | ESMA/2015/1455 ESMA REGULAR USE Table of Contents 1 Executive Summary ....................................................................................................... 8 2 Notification and list of financial instruments ...................................................................11 2.1 Introduction ............................................................................................................11 2.2 Feedback from stakeholders ..................................................................................11 3 The conditions for buy-back programmes and stabilisation measures ...........................12 3.1 Introduction ............................................................................................................12 3.2 Buy-back programmes ...........................................................................................13 3.2.1 General conditions that buy-backs must meet .................................................13 3.2.2 Disclosure and reporting obligations ................................................................13 3.2.3 Conditions for trading ......................................................................................15 3.2.4 Restrictions to trading ......................................................................................16 3.3 Stabilisation measures ...........................................................................................17 3.3.1 Restrictions regarding the time of stabilisation measures ................................17 3.3.2 Disclosure and reporting obligations ................................................................18 3.3.3 Price conditions ...............................................................................................19 3.3.4 “Ancillary stabilisation” .....................................................................................19 3.3.5 Sell side trading during stabilisation periods and “refreshing the Greenshoe” ..20 3.3.6 “Block-trades” ..................................................................................................20 4 Market soundings ..........................................................................................................21 4.1 Introduction ............................................................................................................21 4.2 General remarks ....................................................................................................21 4.2.1 Link to the market sounding beneficiary (MSB) ...............................................21 4.2.2 Clarification on ‘Block trades’ ..........................................................................22 4.2.3 Other scope issues .........................................................................................22 4.2.4 Joint market soundings ...................................................................................23 4.2.5 Other remarks .................................................................................................23 4.3 Arrangements prior to conducting a market sounding .............................................23 4.3.1 Determining what information to disclose ........................................................23 4.3.2 Characterising the information to be disclosed ................................................24 4.3.3 Determining which investors to sound .............................................................24 4.4 Timing of market soundings ...................................................................................24 4.5 Obtaining potential investor’s agreement ................................................................24 4.6 Record keeping requirements imposed on the DMP...............................................25 1 ESMA REGULAR USE 4.6.1 General requirements ......................................................................................25 4.6.2 Standard set of information to be provided to potential investors .....................26 4.6.3 Sounding lists ..................................................................................................27 4.6.4 Point of contact at the potential investors ........................................................28 4.6.5 Recorded communications ..............................................................................28 4.7 The DMP’s internal processes and controls............................................................28 4.7.1 Setting up and reviewing the procedure governing market soundings .............28 4.7.2 Employees of the DMP responsible for conducting the market sounding.........28 4.8 Cleansing ...............................................................................................................28 5 Accepted Market Practices ............................................................................................30 5.1 Background/Mandate (extract) ...............................................................................30 5.2 Analysis ..................................................................................................................30 5.3 Approach regarding the extended scope of MAR ...................................................31 5.4 Status of firms performing an AMP .........................................................................32 5.5 Process and requirements conceived to establish, maintain and terminate a market practice .............................................................................................................................32 6 Suspicious transaction and order reporting....................................................................34 6.1 Introduction ............................................................................................................34 6.2 The reporting obligations ........................................................................................34 6.2.1 Attempted market abuse (including reporting of orders) ..................................34 6.2.2 Clarification of trading venues in MiFID II ........................................................35 6.3 Level of suspicion required .....................................................................................35 6.3.1 Timing of STORs .............................................................................................35 6.3.2 Partial view ......................................................................................................36 6.4 Detection ................................................................................................................36 6.4.1 Proactive surveillance .....................................................................................36 6.4.2 Surveillance systems .......................................................................................36 6.4.3 Internal procedures to facilitate detection and reporting ..................................37 6.4.4 Training ...........................................................................................................38 6.5 Tipping off ..............................................................................................................39 6.6 Content of STORs and Template ...........................................................................39 6.7 Record-keeping ......................................................................................................39 7 Technical means for public disclosure of inside information and delays ........................41 7.1 Introduction ............................................................................................................41 7.2 Means for appropriate disclosure of inside information ...........................................42 2 ESMA REGULAR USE 7.2.1 Channels for appropriate public disclosure ......................................................43 7.2.2 Channels for appropriate public disclosure for EAMPs ....................................45 7.2.3 Posting on the issuer’s website .......................................................................49 7.3 Technical means for delaying disclosure of inside information ...............................50 7.3.1 Article 17(4): “General” delay ..........................................................................50 7.3.2 Article 17(5): Delay to preserve the stability of the financial system .................55 8 Format of the insider list and format for updating ...........................................................57 8.1 Background/Mandate .............................................................................................57 8.2 General approach ..................................................................................................57 8.3 Format and template for the insider list ...................................................................58 8.3.1 Competing issues ............................................................................................58 8.3.2 Structure of the insider list ...............................................................................58 8.3.3 Justification for proposed fields on insider lists ................................................59 8.3.4 “Deal specific” and permanent lists ..................................................................61 8.4 Transmission of the insider list upon request ..........................................................61 8.5 SME-growth