Euronext has announced that it has officially acquired a majority share of InsiderLog, in exchange for €5.8 million and an additional “earn-out payment”, to be determined depending on future performance. Euronext hopes that the innovative technology of InsiderLog will enhance and work in tandem with its existing securities offerings.
InsiderLog is a Stockholm-based company, specializing in insider list management solutions. The company enables companies to enter insider data, which can be market sensitive, while simultaneously allowing for the relatively easy monitoring of compliance with Market Abuse Regulation (MAR). In order to comply with MAR, companies are required to create insider lists, which contain information that can influence market prices.
InsiderLog’s system is known to be highly secure, and assists companies with insider list creation, as well as compliance related requirements from regulators in a structured environment. According to its website, InsiderLog itself does not receive access to any of its users’ data, due to high levels of sensitivity and potential market abuse opportunities, thus increasing its appeal to Euronext and its associated issuers.
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All companies that have listed instruments within the European Union are subject to compliance with MAR rules and regulations, thereby increasing the importance and benefits of using InsiderLog’s system. A lack of proper compliance with MAR will entail a penalty of up to €2.5 million, or 2% of their turnover.
Euronext’s acquisition of InsiderLog also coincides with the exchange’s recent shift toward broader goals and aspirations to provide issuers with a comprehensive array of services. The move takes aim at alleviating one of the most critical needs for issuing companies, by enabling a simple and comfortable system that will ensure their MAR compliance requirements.
Last year, Europe’s largest exchange implemented a modified market structure, in an effort to facilitate improvements for mid-cap companies and other listings. Moreover, Euronext also acquired FastMatch, an ECN FX brokerage with a proven and successful track record. The FastMatch acquisition came at a much higher cost of $153 million.