Regulation

Esma warns of ‘unlawful disclosure’ in pre-close calls

Volatility around the time of pre-close calls is ‘raising suspicion about disclosure of inside information’

Verena Ross, the watchdog’s chair, is trying to make sure select analysts don’t get privileged information ahead of others
Verena Ross, the watchdog’s chair, is trying to make sure select analysts don’t get privileged information ahead of others Photo: Kiyoshi Ota/Getty Images

The European Securities and Markets Authority has warned firms holding pre-close calls with analysts not to disclose inside information.

The regulator said the use of pre-close calls — a common practice in Europe where firms speak with equity researchers prior to the blackout period before results — carries “inherent risks of inadvertent unlawful disclosure.”

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