BRUSSELS, Sept. 10 (Xinhua) -- A senior official of the European Commission (EC) on Tuesday welcomed the endorsement by the European Parliament (EP) of "tougher rules to better prevent, detect and punish market abuse."
"I welcome the political agreement with Council on the Market Abuse Regulation that Parliament has endorsed today," said European Union Internal Market and Services Commissioner Michel Barnier.
"With this agreement, the European Parliament has made a decisive contribution to the fight against insider dealing and market manipulation," Barnier added in a written statement on the EC's website.
The new rules are enhanced to capture abuse on the "electronic trading platforms" that have proliferated in recent years, and "abusive strategies through high frequency trading" will be clearly prohibited.
"Those who manipulate benchmarks such as the London interbank offered rate (LIBOR) will be guilty of market abuse and face tough fines," the Commissioner said.
Under the new rules, market abuse "occurring across both commodity and related derivative markets" will be prohibited, and cooperation between financial and commodity regulators will be reinforced.
The "deterrent effect" of the legislation will be also greater than today, with the possibility of fines at least up to three times the profit made from market abuse, or at least 15 percent of turnover for companies.