cepPolicyBrief
Financial Markets
Criminal Sanctions for Insider Dealing and Market Manipulation (Directive)
cepPolicyBrief
A general prohibition of insider dealing has a positive impact on growth and employment. However, due to the unclear terminology, the application of criminal law to market manipulation leads to legal uncertainty. The EU has the competency only subject to the condition that the introduction of EU-wide sanction rules is “essential”. Currently this is rather questionable.