AI Summary of Article 52 Suspension and removal of financial instruments from trading on a regulated market
This document outlines the obligations of market operators regarding the suspension or removal of financial instruments from trading. Operators must act in compliance with regulated market rules and ensure that their actions do not significantly harm investor interests or impede market order. If a financial instrument is suspended, related derivatives must also be suspended unless such action would cause notable disruption.
The competent authorities are tasked with coordinating the suspension processes across regulated markets, MTFs, and OTFs, especially under circumstances of suspected market abuse or non-disclosure of inside information. ESMA is to develop technical standards to refine these regulatory requirements.
Article 52 Suspension and removal of financial instruments from trading on a regulated market
1. Without prejudice to the right of the competent authority under Article 69(2) to demand suspension or removal of a financial instrument from trading, a market operator may suspend or remove from trading a financial instrument which no longer complies with the rules of the regulated market unless such suspension or removal would be likely to cause significant damage to the investors' interests or the orderly functioning of the market.
2. Member States shall require that a market operator that suspends or removes from trading a financial instrument also suspends or removes the derivatives as referred to in points (4) to (10) of Section C of Annex I that relate or are referenced to that financial instrument where necessary to support the objectives of the suspension or removal of the underlying financial instrument. The market operator shall make public its decision on the suspension or removal of the financial instrument and of any related derivative and communicate the relevant decisions to its competent authority.