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ESMA Issues Statement on Information Sharing During Pre-Close Calls

ESMA Issues Statement on Information Sharing During Pre-Close Calls

ESMA Information Sharing

The European Securities and Markets Authority (ESMA) has issued its latest statement on information sharing during pre-close calls. This article provides an in-depth explanation of ESMA's statement and its implications.

What is a Pre-Close Call?

A pre-close call is a conference call held by companies to share information with investors and analysts before closing their quarterly or annual financial statements. During this period, companies provide performance forecasts and other critical information. ESMA has established guidelines to ensure transparency and fairness in information sharing during these calls.

Background of ESMA's Statement

Recently, ESMA issued new guidelines on information sharing during pre-close calls. The background of this statement includes efforts to mitigate the risks of information misuse and market manipulation. ESMA emphasizes the importance of companies providing transparent and fair information to the market.

Key Points of the Statement

ESMA's statement includes the following key points:

  • Timely Disclosure of Information: Companies must disclose critical information provided during pre-close calls in a timely manner.
  • Prohibition of Selective Disclosure: To ensure all investors have access to the same information, selective disclosure to specific investors is prohibited.
  • Ensuring Transparency: Companies must have clear policies on how and when information is shared and must adhere to these policies.

Impact on the Market

ESMA's guidelines are an important step in preventing information misuse and market manipulation. This allows investors to make investment decisions based on more reliable information, enhancing market transparency and fairness. For companies, increased transparency contributes to building long-term trust.

Corporate Measures

Companies need to take several measures to comply with ESMA's guidelines. Some of these measures include:

  • Reviewing Information Disclosure Processes: Reviewing and establishing procedures to provide timely and fair information disclosure.
  • Strengthening Internal Controls: Enhancing internal controls to prevent information misuse.
  • Conducting Employee Training: Educating employees about ESMA's guidelines and ensuring compliance.

The Future Indicated by ESMA's Statement

ESMA's statement is a significant step towards enhancing future market transparency and fairness. By adhering to these guidelines, companies can earn market trust, and investors can invest with confidence. ESMA will continue its efforts to promote healthy development in financial markets.

Conclusion

ESMA's statement on information sharing during pre-close calls provides crucial guidelines for ensuring transparency and fairness in information disclosure. By following these guidelines, companies can enhance market trust and achieve long-term growth. Investors, too, can make better investment decisions based on the reliable information provided by these guidelines.

ESMA Issues Statement on Sharing Information During Pre-Close Calls

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David Wilson
Author

David Wilson has extensive experience in currency and commodities trading. He began his career in metal sales and trading at Societe Generale in London. He went on to work as a senior analyst within the FX industry where he developed and refined his own trading and risk management strategies. Having a solid understanding of market dynamics, he founded his own research and asset management services and works with FIXIO to provide timely market commentary on the global financial markets.

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