Hungary: new capital markets regulation

Hungary: new capital markets regulation

New rules have been issued dealing with market manipulation, the acceptability of market practices and disclosure of inside information. The rules are intended to promote greater transparency among market players and offer more protection to investors. The rules list certain types of behaviour by market players which the Hungarian Financial Supervisory Authority will treat as indicating market manipulation, such as false or misleading actions, price securing, using fictitious devices and other forms of deception. There is also an exhaustive list of the factors to be taken into account and the measures to be taken when considering the acceptability of a market practice. In this regard, the Hungarian Financial Supervisory Authority is going to:

• publish on its website its decisions on the acceptability of market practices, including descriptions of those practices, and send them to the Committee of European Securities Regulators as well
• regularly review accepted market practices, taking account of significant changes to the relevant market environment such as changes to trading rules or to market infrastructure
• consult market players and the other competent authorities before making a decision on the acceptability of a particular market practice

There is also a non-exhaustive list of cases when, to protect their legitimate interests, issuers are allowed to delay public disclosure of inside information.

Law: Decree No. 28/2005 of the Hungarian Minister of Finance on the detailed rules of market manipulation, acceptability of market practices and public disclosure of inside information For more information, please contact Dr. Anikó Kircsi at [email protected] or on +361 483 4827.