EU directive Absolutely MAD

EU directive misses the mark

The unfortunately named Market Abuse Directive is living up to its acronym. This EU regulation seeks to set in place a common framework for preventing insider dealing, market manipulation and full disclosure of information to market participants. It implements all sorts of sensible things such as listing persons with access to inside information. Another rule requires researchers to declare possible conflicts of interest.

But the section of the regulations that governs market manipulation might well prove to be counter-productive.

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