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Today, the European Securities and Markets Authority (“ESMA”) has published its Annual Report on Suspicious Transaction and Order Reports (“STORs”),which aims at providing the market with insight over the use of STORs in different EU jurisdictions, and how this key information tool has evolved over time considering the Market Abuse Regulation regime. This Report is primarily based on information and data gathered for the previous year, i.e. 2023, but also includes data from previous years to provide comprehensive overviews.
STORs are a fundamental tool for National Competent Authorities (“NCAs”) to detect, monitor and investigate practices relating to market abuse. MAR requires persons professionally arranging or executing transactions, market operators and investment firms that operate a trading venue to report without delay orders and transactions, including any cancellation or modification thereof, that could constitute insider dealing, market manipulation or attempted insider dealing or market manipulation to the NCA of the trading venue. Furthermore, Commission Delegated Regulation (EU) 2016/957[1] further specifies the appropriate arrangements, systems and procedures to prevent and detect market abuse as well as notification templates to be used for reporting suspicious practices.
In 2023, NCAs received a total of 6,530 STORs (a rise by 12% compared to 2022), whereby Germany received the majority of STORs (33%) followed by France (18%), Sweden (9%), and the Netherlands and Italy (5% each). Although no figures were provided, the number of STORs received by the Malta Financial Services Authority remains low.
The authors would like to thank Mr Luca Formosa for his assistance in the drafting of this news item.
Author: Jonathan Camilleri, Beppe Degiorgio
Footnotes
[1] Commission Delegated Regulation (EU) 2016/957 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the appropriate arrangements, systems and procedures as well as notification templates to be used for preventing, detecting and reporting abusive practices or suspicious orders or transactions.