Topic Information obligations for issuers Spirit and purpose
Article from Issuer Guidelines published by the Federal Financial Supervisory Authority
The spirit and purpose of the privileged treatment under Article 11 of the MAR is to give the capital market participants an opportunity to conduct market soundings even if the underlying facts contain inside information and sounding would therefore also lead to the disclosure of inside information and hence an infringement of point (c) of Article 14 of the MAR.
In line with the MAR recitals, market soundings are, in turn, important for the proper functioning of the financial markets. “They may be particularly beneficial when markets lack confidence or a relevant benchmark, or are volatile.”1
Footnotes:
- 1 Recital (32) of the MAR.
