MAR's unintended consequences

Author: | Published: 6 Mar 2018

The regulation is driving debt issuers away from the EU and undermining the CMU’s core objectives

Compared to the framework it substitutes, the Market Abuse Regulation (MAR) extends the application of inside information disclosure, inside information control, senior managers' share dealings and share repurchase requirements to all issuers that have applied to have their securities admitted to trading not only on EU regulated markets but also on EU multilateral trading facilities (MTFs). MAR applies the same rules on market abuse for debt as it does for equity instruments even though the potential risk of market abuse via debt instruments is far lower. This one-size-fits-all approach, along with the divergences of international rules, is driving debt issuers away from the EU, which is unlikely to suit the Capital Markets Union (CMU) Action Plan's ambitious objectives....