The new market abuse regime in Greece: A step towards increased market transparency or a new source of confusion?
| Date | 01 December 2004 |
| Published date | 01 December 2004 |
| Pages | 315-329 |
| DOI | https://doi.org/10.1108/13581980410810867 |
| Author | Panagiotis K. Staikouras |
| Subject Matter | Accounting & finance |
The new market abuse regime in Greece: A
step towards increased market transparency
or a new source of confusion?
Panagiotis K. Staikouras
Received (in revised form): 7th April, 2004
3–5 Papaflessa Street, Galatsi, 111 46, Athens, Greece; e-mail: p.staikouras@lse.ac.uk
Panagiotis K. Staikouras graduated from
the Law Department of the University of
Athens (1994–1998) and successfully
attended the LLM course in Banking and
Finance Law in the University of London
(QMW 1998–1999). He obtained his PhD
from LSE in 2003 (1999–2003). The author
is currently working in Greece as an attor-
ney-at-law (E. Stratigis & Partners Law
Office) and teaches at the University of
Piraeus (Department of Banking and
Finance) as a Research Fellow.
ABSTRACT
KEYWORDS: market abuse, insider trad-
ing, manipulation, enforcement, Greece
The Greek insider trading and market manipula-
tion (market abuse) regime is in the process of
transformation by the new Code on Capital
Market, which internalises the provisions of the
2003 Market Abuse Directive. The new market
abuse prohibition follows an effect-oriented
approach, which, in conjunction with the appli-
cation of strict administrative law sanctions, is
likely to expand the scope of liability. Though,
however, the new market abuse regime will facil-
itate the prosecution of insiders and manipulators,
a number of issues are left open to discussion.
Consequently, supervisory authorities and courts
are required to display particular care in the inter-
pretation and application of the new regime in
order to ensure effective enforcement.
INTRODUCTION
In January 2003, the Market Abuse Direc-
tive (MAD) was finally adopted, follow-
ing consultations which lasted for almost
two years.
1
The MAD has been produced
on the basis of the new faster legislative
procedure introduced by the ‘Wise Men
Committee’ (or ‘Lamfalussy Committee’)
2
.
The new procedure contemplates four
levels. The first level involves the estab-
lishment of basic framework principles for
a particular aspect of securities regulation
in accordance with Art. 251 of the EC
Treaty.
3
The second level comprises the
adoption of detailed technical provisions as
necessary for giving effect to the frame-
work principles;
4
the third level concerns
the consistent and uniform application of
the relevant Community rules at the
national level, while the fourth level refers
to the vigorous enforcement of the Com-
munity rules.
5
The new Directive, which
brings together under the umbrella of
‘market abuse’ provisions covering insider
trading and, for the first time, market
manipulation, is considered to add a new,
powerful ‘weapon’ in the legal ‘arsenal’ of
member states’ competent supervisory
authorities.
Though member states are required to
implement the MAD’s provisions by 12th
October, 2004, the Greek legislator has
already taken care that the new Code on
Page 315
Journal of Financial Regulation and Compliance Volume 12 Number 4
Journal of Financial Regulation
and Compliance, Vol. 12, No. 4,
2004, pp. 315–329
#Henry Stewart Publications,
1358–1988
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