The European Commission has welcomed the European Parliament's approval at second reading yesterday of a proposed directive on insider dealing and market manipulation.
The European Parliament has issued a new directive that it hopes will combat insider trading and market manipulation.
The new guidelines, which will go to the EU's Council of Ministers, are a major step forward in integrating European financial markets and are likely to come into force at the beginning of next year, according to EU internal markets Commissioner Mr Frits Bolkestein.
When implemented, markets across Europe will allow for a greater degree of information exchange than before between national regulatory authorities, ensuring the same framework for the enforcement of regulations throughout the EU.
This, Mr Bolkestein said, would reduce potential inconsistencies and confusion close off any loopholes. The directive covers insider dealing and market manipulation. The same framework will be applied for both categories of market abuse and will reduce the number of different rules and standards across the European Union.
"Europe has no truck with the type of greedy financial cheats who have caused so many recent problems," Mr Bolkestein said.
The directive will cover all financial instruments admitted to trading on at least one regulated market in the European Union, including primary markets.
It will also apply to all transactions concerning those instruments, whether those transactions are undertaken on regulated markets or elsewhere.