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Part B Commentary, 2 Inside Information, Insider Dealing, Unlawful Disclosure of Inside Information, and Market Manipulation, Art.11: Market soundings

Edited By: Marco Ventoruzzo

From: Market Abuse Regulation: Commentary and Annotated Guide (2nd Edition)

Edited By: Marco Ventoruzzo, Sebastian Mock

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 23 July 2024

Insider dealing — Insider trading — Misuse of information — Investment business — Market abuse — Market Abuse Directive (MAD) — Regulated activities

This chapter discusses market soundings, as laid out in Article 11. Article 11 explains that a market sounding ‘comprises the communication of information prior to the announcement of a transaction’. Market soundings are made in order to gauge the interest of potential investors in a possible transaction and the conditions relating to it. Compliance with the market sounding regime provides the prospective offeror of financial instruments protection against presumptions of unlawful disclosure of inside information. Unless disclosure is made in accordance with the requirements for market soundings, the information must be treated in the normal way for disclosures of inside information.

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