EU toughens up market manipulation rules

New framework for market manipulation launched as part of Capital Markets Union project.

The EU has released a revamped framework to address market manipulation in Europe’s financial markets.

Applicable from 3 July, the new framework aims to increase investor protection by allowing deeper and more integrated financial markets as well as increasing regulatory powers.

The resulting rulebook will also contribute to the creation of the upcoming Capital Markets Union.

“I am very pleased that our revamped rulebook against insider dealing and market manipulation is now taking effect,” said Jonathan Hill, former EU Commissioner responsible for Financial Stability, Financial Services and Capital Markets Union who resigned after last week’s Brexit vote.

“Having in place clear rules against misbehaviour on Europe’s financial markets is key for their efficient functioning and investor protection,”

The new rules will both reinforce and replace current EU rules on market integrity that were first introduced in 2003.