The regulation requires that market operators (such as Euronext) and investment firms that operate a trading venue shall establish and maintain effective arrangements systems and procedures aimed at preventing and detecting insider dealing and market manipulation (i.e. market abuse), as well as attempts to engage in such activities. The Regulation also requires market operators and investment firms to notify the AFM - about orders and transactions, as well as cancellations or modifications that could constitute (attempted) market abuse. In such cases, the notification that must be made is referred to as a Suspicious Transaction and Order Report (STOR).
In addition, every person that professionally arranges or executes transactions in financial instruments must establish and maintain effective rules, systems and procedures to detect and notify suspicious orders and transactions. If such a person has a reasonable suspicion that an order and/or transaction in a financial instrument, whether placed or executed on or outside a trading platform, could constitute insider dealing, market manipulation or attempted insider dealing or market manipulation, the person is obliged to notify the AFM without delay.
If a reasonable suspicion exists that an order or transaction represents actual or attempted insider dealing or market manipulation, the order or transaction concerned will be notified to the AFM by the persons who professionally arrange or execute transactions and who are registered in the Netherlands, or whose head office or branch office is in the Netherlands.
If the suspicion of market abuse arises from an order and/or transaction executed through a Dutch company's branch office in another EU Member State, the company will report the suspicion to the competent authority of the Member State in which the branch office is located.