The European Securities and Markets Authority (ESMA) has issued a statement reminding issuers to be mindful of the legislative framework applicable to "pre-close period calls" and encouraging them to adhere to good practices during such calls to promote maintaining fair, orderly, and efficient markets.

Given recent media reports implying a correlation between high stock price volatility and "pre-close period calls," ESMA reminds issuers that any disclosure of insider information should only occur in compliance with the Market Abuse Regulation (MAR). Therefore, issuers should only share non-insider information during these "pre-close period calls."

In order to address potential issues related to pre-close period calls, ESMA recommends following several best practices, including:

• Assessing the information intended for disclosure before pre-close period calls to ensure it is not insider information.
• Publicly announcing upcoming pre-close period calls on the issuer's website, highlighting relevant details (date, location, topic, and participants).
• Providing materials and documents used during pre-close period calls on the issuer's website simultaneously.

Pre-close period calls are communication sessions between issuers and analysts who generate research, forecasts, and recommendations related to the issuer's financial instruments. These calls typically occur before the release of interim or annual financial reports, during which issuers refrain from providing additional information or updates. The outcomes of pre-close period calls can influence market expectations and instrument prices.