Table of Contents 2. Second stage known as Solvency II ............................................................ 331 a) Firstly, pillar I sets out the quantitative requirements, i.e. the rules for the valuation of assets and liabilities, along with the capital requirements and the method of calculating such requirements. ................................................................. 332 b) Secondly, pillar 2 sets out the so‑called qualitative requirements, i.e. the rules of governance and risk management for insurers, including Own Risk and Solvency Assessment (ORSA)............................................................................................................................ 333 c) Thirdly, pillar 3 is concerned with public disclosure and reporting to the supervisory bodies. ................................................. 333 B. Outlook: towards a european insurance contract law? ............333 IX. Financial markets law...............................................................................................337 A. The acquis ..............................................................................................................................337 1. The status of professionals ................................................................................. 338 a) Investment service providers ........................................................................... 339 b) Managers and depositaries of collective investment schemes .................................................................. 339 c) Rating agencies ......................................................................................................... 341 2. The organisation of financial markets ..................................................... 341 a) The structure of financial markets................................................................. 341 b) The regulation of activities ................................................................................ 342 i) Issuers' obligations to provide information .................................................. 342 ii) Takeovers ................................................................................................................ 343 iii) Short selling........................................................................................................... 343 iv) Collateral in the financial markets ................................................................. 344 v) The settlement of transactions ......................................................................... 344 c) Regulation by ESMA ............................................................................................. 346 3. Protection of investors ........................................................................................... 346 a) Protection at the marketing stage.................................................................. 346 b) Protection at the compensation stage ........................................................ 347 4. Sanctions for market abuse ............................................................................... 348 389