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European securities regulators have finalized arrangements to combat abusive trading through cooperative enforcement and information sharing.

On Tuesday, the European Securities and Markets Authority (ESMA) issued a final report setting out cooperation arrangements between regulators to enable the efficient exchange of information and  obligations designed to prevent market abuse.

The report noted that there is a long history of cooperation among the international community of securities regulators to fight market abuse, including cross-border enforcement mechanisms developed by the International Organization of Securities Commissions.

“These internationally recognized arrangements are based on robust international standards. They have been used for many years already and proven helpful to ensure an efficient cooperation with third country supervisory authorities,” the report said, adding that, “these arrangements are widely accepted throughout the community of securities regulators.”

“As markets’ integration further increases, smooth cooperation between authorities, entities and public bodies is paramount in order to identify and deter abusive behaviour,” the ESMA said.

The ESMA has submitted the arrangements to the European Commission for final approval. Once fully implemented, they will become part of the single rulebook for Europe’s securities markets.