European Securities and Markets Authority Statement on Good Practices for Pre-Close Calls

The European Securities and Markets Authority has published a statement on good practice in relation to "pre-close calls" (i.e. communication sessions between an issuer and analysts who generate reports on the issuer's financial instruments). The statement seeks to remind issuers about the applicable legislative framework for pre-close calls and encourages them to follow good practices when engaging in such calls, with the goal of maintaining fair, orderly, and effective markets. Following recent media reports suggesting a connection between episodes of high volatility in share prices and pre-close calls, ESMA reminds issuers that any disclosure of inside information should only take place in accordance with the EU Market Abuse Regulation. Consequently, issuers should only share non-inside information during these pre-close calls.

To address potential concerns related to pre-close calls, ESMA recommends several good practices, including:

• Prior to a pre-close call, carrying out an assessment of the information intended to be disclosed, making sure that it is not inside information.
• Informing the public about the upcoming pre-close calls via the issuer’s website, highlighting the relevant details.
• Making the material and documents used in the call simultaneously available on the issuer’s website.

ESMA notes that the analysis of specific episodes and identification of potential breaches of MAR is for national competent authorities.

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