European Parliament declared war to financial market manipulators, endorsing new legislative proposals which foreseen four years of jail for those who act in illegal way. The draft has been approved in Strasbourg by the large majority of the members of the Parliament (618 votes to 20, with 43 abstentions), and now will be discussed into the Council. The draft rules lay down tougher criminal penalties, including prison terms, for «serious market abuses such as unlawful disclosure of information, insider dealing or market manipulation and also inciting, aiding or abetting them». To ensure that these penalties apply EU-wide, all member states would have to require their judges to sentence maximum penalty offenders to «no less than four years in jail for the most serious forms of insider dealing or market manipulation and no less than two years for unlawful disclosure of information». Furthermore, ander the new rules the definitions of offences and the penalties applied for them would be harmonised. Market manipulation offences punishable by a four-year jail term would include entering into a transaction or placing an order which gives false or misleading signals about the supply, demand or price of one or more financial instruments or providing false or misleading inputs to manipulate the calculation of benchmarks, such as the London Interbank Offered Rate (LIBOR) or Euro Interbank Offered Rate (EURIBOR). Insider dealing offences punishable by fouryears’ imprisonment include those in which «inside information is used with intent to buy or sell financial instruments or to cancel or amend an order».
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