Regulatory Alerts2022-07-13
Added · Updated
Commission Delegated Regulation (EU) 2022/1959 on contractual templates for liquidity contracts on SME growth markets
The European Commission adopted Delegated Regulation (EU) 2022/1959 to supplement Regulation (EU) No 596/2014 by establishing regulatory technical standards for liquidity contracts involving shares of issuers on SME growth markets. Issuers must use the prescribed contractual template, which mandates the opening of a dedicated liquidity account and imposes specific resource, price, and volume limits to prevent market abuse. The regulation sets maximum daily trading volumes at 25% for illiquid shares and 15% for liquid shares, alongside caps on allocated resources ranging from EUR 500,000 to EUR 20 million depending on share liquidity. It also requires issuers to publish transparency information on their websites and limits the variable remuneration of liquidity providers to ensure market integrity.