The FMLC has responded to ESMA’s consultation on the MAR review. Its response makes 2 key points:
- although the current definition of market abuse is not perfect, it should not be changed now, given the efforts market participants went to to adopt the previous change not long ago;
- that there would be not only technical difficulties in bringing spot FX contracts within MAR (such as that there is no issuer) but also there would need to be rafts of exemptions for the regime to be workable and even then market participants would have trouble identifying what is relevant as inside information given the nature of spot FX. FMLC also feels the issues are covered under the FX Global Code already and that this should not be disrupted.