Insights

The European Securities and Markets Authority (“ESMA”) has just updated its question and answer document on the Market Abuse Regulation (“MAR”). The updated document revised the question and answer concerning the interpretation of “persons professionally arranging or executing transactions” and has now clarified that investment  firms providing direct electronic access (DEA providers) with respect to their DEA clients’ trading activity are also deemed to fall within the definition of “persons professionally arranging or executing transactions” and are therefore required to have appropriate and effective arrangements, systems and procedures to detect and report suspicious orders and transactions in terms of article 16 of MAR.

This update comes at an opportune time for the Maltese market since earlier this month, the Malta Financial Services Authority launched a data-gathering exercise to determine which investment services license holders fall within the scope of article 16. Read here for more information.