Euronext has purchased a majority share of InsiderLog, a Stockholm-based RegTech company, to help the industry meet compliance requirements associated with the Market Abuse Regulation (MAR).
The pan-European exchange has purchased 80% of the business for €5.8m, plus an earn-out payment depending on future financial performance.
Euronext said the purchase will enable it to capture a ‘sizeable market opportunity’ in insider list management created by the Market Abuse Regulation, which came into force in July 2016 and is in line with Euronext’s strict M&A discipline.
All companies with listed instruments in the European Union are subject to the new MAR insider list requirements, with non-compliance penalties of up to €2.5m or 2% of their turnover. The regulation requires every listed company, their advisors and listed bond issuers to create and manage insider lists for all market sensitive projects.
InsiderLog automates the management of insider lists to save time and ensures compliance with the requirements of the MAR. It supports compliance officers with this responsibility, from the creation of insider lists, to the management of related information collection workflows, including the reporting to regulators in a standardised format. In addition to insider lists, the company also manages the administration of Persons Discharging Managerial Responsibilities (PDMR) and the closed period before each financial report.
Stéphane Boujnah, CEO and chairman of the managing board of Euronext, said: “The acquisition of InsiderLog will address a growing need from issuers in Europe, by helping them manage their insider lists via an efficient and time-saving solution. This acquisition will complement the existing Euronext Corporate Services offering and will deliver further growth and profitability to our shareholders, as announced in our Agility for Growth strategic plan.“
InsiderLog is a web-based, GDPR-compliant platform based on an annual subscription model and has already attracted more than 170 clients including renowned blue chip companies, banks and law firms since its recent creation in November 2016.
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