50 Amendments of Markus FERBER related to 2021/0385(COD)
Amendment 104 #
Proposal for a regulation
Title 1
Title 1
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of a consolidated tape, optimising the trading obligations and prohibiting receivrules governing payments for forwarding client orders (Text with EEA relevance)
Amendment 109 #
Proposal for a regulation
Recital 6
Recital 6
(6) Article 4 of Regulation (EU) No 600/2014 allows competent authorities to waive the pre-trade transparency requirements for market operators and investment firms operating a trading venue who determine their prices by reference to the midpoint price of the primary market or the most relevant market in terms of liquidity. As there is no justification for excluding the smallest orders from a transparent order book and in order to increase pre-trade transparency and thereby reinforce the price formation process, that waiver should be applicable to orders with a size greater than or equal to twice the standard market size. Where the consolidated tape for shares and exchange-traded funds (ETFs) will provide bid and offer prices from which a midpoint can be derived, the reference price waiver should also be available for systems deriving the midpoint price from the consolidated tape.
Amendment 111 #
Proposal for a regulation
Recital 7
Recital 7
(7) Dark trading is trading without pre- trade transparency, and includes all trading venues operating under a pre-trade transparency waiver and should also encompass Systematic Internalisers when trading above the minimum size or Frequent Batch Auctions (FBAs). Because trades above the large in scale threshold do not participate in the price formation process and shall be protected against market impact, dark trading shall be restricted to trading venues operating using the reference price waiver laid down in Article 4(1), point (a) of Regulation (EU) No 600/2014 and the negotiated trade waiver laid down in Article 4(a) point (a), point (i) of that Regulation. TCurrently, the use of both waivers is capped by the double volume cap (‘DVC’). The DVC is a mechanism that limits the level of dark trading to a certain proportion of total trading in an equity instrument. The amount of dark trading under both waivers in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the Union. When this threshold is breached, dark trading in that instrument on that venue is suspended. Secondly the amount of dark trading in an equity instrument in the Union may not exceed 8% of total trading in that instrument in the Union. When this threshold is breached all dark trading in that instrument is suspended. The DVC faces certain limitations as it only limits dark trading inside the two waivers it covers. The venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended, until the Union wide threshold is breached. This causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. To simplify the double volume cap while keeping its effectiveness, the new single volume cap should rely solely on thean EU-wide threshold. That threshold should be lowered to 7 % to compensate for a potential increase of trading under those waivers as, not be limited to certain waivers, but capture all price-forming transactions below the large-in-scale threshold and subject to the share trading obligation. The volume cap threshold should be determined by ESMA taking into a cconsequence of abolishing the venue specific threshold. unt the impact of the cap on price formation, liquidity, and end investors’ outcome.
Amendment 121 #
Proposal for a regulation
Recital 10
Recital 10
Amendment 128 #
Proposal for a regulation
Recital 11
Recital 11
(11) In order to reinforce the price formation process and to maintain a level playing field between trading venues and systematic internalisers, Article 14 of Regulation (EU) No 600/2014 requires systematic internalisers to make public all quotes in equity instruments placed by that systematic internaliser below the standard market size. Systematic internalisers are free to decide which sizes they quote, as long as they quote at a minimum size of 10% of the standard market size. That possibility, however, has led to very low levels of pre-trade transparency provided by systematic internalisers in equity instruments, and has hampered the achievement of a level playing field. It is therefore necessary to require systematic internalisers to publish firm quotes relating to a minimum of twiceonly quote and trade orders that are large in scale compared to the standard market size.
Amendment 129 #
Proposal for a regulation
Recital 12
Recital 12
Amendment 136 #
Proposal for a regulation
Recital 13
Recital 13
(13) Market participants needbenefit from core market data to be able towhen makeing informed investment decisions. Pursuant to the current Article 27h of Regulation (EU) 600/2014, sourcing core market data about certain financial instruments directly from trading venues and APAs requires that consolidated tape providers enter into separate licensing agreements with all those data contributors. That process is burdensome, costly and time consuming. It has been one of the obstacles to consolidated tape providers emerging on a cross market basis. This obstacle should be removed in order to enable consolidated tape providers to obtain the market data and to overcome licencing issues. Trading venues and APAs, or investment firms and systematic internalisers without intervention of APAs (‘market data contributors’) should be required to submit their market data to consolidated tape providers, and to use harmonised templates respecting high–quality data standards to do so. Only CTPs selected and authorised by ESMA should be able to collectreceive harmonised market data from the individual data sources in accordance with the mandatory contribution rule. To make the market data useful for investors, market data contributors should be required to provide the CTP with market data as close as technically possible to real timwith a delay of one minute.
Amendment 137 #
Proposal for a regulation
Recital 14
Recital 14
(14) Title II and III of Regulation (EU) 600/2014 require trading venues, APAs, investment firms and systematic internalisers (‘market data contributors’) to publish pre-trade data on financial instruments, including bid and offer prices and post-trade data on transactions, including the price and volume at which a transaction in a specific instrument has been concluded. Market participants are not obliged to use the consolidated core market data provided by the CTP. The requirement to publish those preost-trade and post-trade datadata with a delay of one minute should therefore remain applicable to enable market participants to access market data. However, to avoid undue burden on market data contributors, it is appropriate to align the requirement for market data contributors to publish data as much as possible with the requirement to contribute data to the CTP.
Amendment 139 #
Proposal for a regulation
Recital 15
Recital 15
(15) Due to the disparate quality of market data, it is difficult for market participants to compare those data, which devoids data consolidation of much added- value. It is of the utmost importance for the proper functioning of the transparency regime set out in Title II and III of Regulation (EU) 600/2014 and for the consolidation of data by consolidated tape providers that market data are of high quality. It is therefore appropriate to require that those market data comply with high quality standards in terms of both substance and format. It should be possible to change the substance and the format of the data within a short time to allow for changing market practices and insights. Therefore the requirements for the quality of data should specified by the Commission in a Delegated Act and should take into account the advice of a dedicated consultative group, composed of experts from the industry and from public authorities.
Amendment 147 #
Proposal for a regulation
Recital 20
Recital 20
(20) Competition among consolidated tape providers ensures that the consolidated tape is provided in the most efficient way and under the best conditions for users. However, no entity has, up until now, applied to act as a consolidated tape provider. It is therefore considered appropriate to empower ESMA to periodically organise a competitive selection procedure to select a single entity which is able to provide the consolidated tape for each specified asset class. Taking into account the novelty of the proposed scheme, ESMA should only mandate the provision of post-trade transparency data for the first selection procedure that it runs in relation to shares. At least 18 months before the launch of the second selection procedure, ESMA should submit a report to the Commission assessing whether therpursue a careful and sequenced approach starting with those asset classes that would benefit most form an increase isn market demand for extending the data contributed to the tape to pre-trade data. On the basis of such a report, the Commission should be empowered, by way of a delegated act, to further specify the depth of pre-trade data to the tapetransparency. Therefore, the sequence should be: fixed income, derivatives and equities.
Amendment 157 #
Proposal for a regulation
Recital 21
Recital 21
(21) According to data presented in the impact assessment accompanying the proposal for this Regulation, the expected revenue generation for the consolidated tape will vary depending on the precise features of the tape. The expected revenue of the CTP should significantly exceed the cost of its production and therefore help to build a solid revenue participation scheme whereby the CTP and the market data contributors share aligned commercial interests. This principle should not prevent CTPs from making a necessary margin to maintain a viable business model and from using the core market data to offer further analytics or other services aimed to increase the revenue pool. The market data contributors should at least receive a remuneration based on the costs it has incurred in generating and providing the data to the CT.
Amendment 162 #
Proposal for a regulation
Recital 22
Recital 22
(22) There is an objective difference between a venue of primary admission and other trading venues that serve as secondary trading markets. A venue of primary admission admits companies to the public markets, playing a crucial role in the life of a share and for the share’s liquidity. This is particularly true in the case of shares listed on smaller regulated markets which remain typically traded mostly on the venue of primary admission and in the case of SME Growth Markets, which are often the center of liquidity for the securities they offer for trading. When the pre-trade transparent trading of a certain share takes place exclusively or predominantly on the venue of primary admission, such smaller venue plays a more important role in the price formation for that share. The core market data a smaller regulated market or SME Growth Market contributes to the consolidated tape therefore plays a more determining role in the price formation for the shares this venue admits to trading. A preferential treatment in the revenue participation scheme is therefore considered appropriate to allow these smaller exchanges and SME Growth Markets to maintain their local admissions and safeguard a rich and vibrant ecosystem in line with the objectives of the Capital Markets Union.
Amendment 164 #
Proposal for a regulation
Recital 23
Recital 23
(23) Small regulated markets and SME Growth Markets are regulated markets which admit shares of issuers for which trading in the secondary market tends to be less liquid than the trading of shares admitted to trading on larger regulated markets. In order to avoid that lower trading volumes (or nominal values) penalise smaller exchanges and SME Growth Markets in the revenue participation scheme designed for the consolidated tape for shares, data from trades in these less liquid shares should attract a higher remuneration than their notional trading value would indicate. Whether a share is less liquid should be determined on the basis of the proportion of pre-trade transparent liquidity displayed by the regulated market that admits the less liquid share, relative to the average daily trading turnover in that share.
Amendment 167 #
Proposal for a regulation
Recital 24
Recital 24
(24) Given the novelty of the consolidated tape in the context of the EU financial markets, ESMA should be entrusted with providing the European Commission with an assessment of the revenue participation scheme designed for regulated markets in the context of the consolidated tape for shares. This report should be prepared on the basis of at least 12 months of operation of the CTP and subsequently at the request of the Commission, where deemed necessary or appropriate. The assessment should focus in particular on whether the participation of small regulated markets and SME Growth Markets in the revenue of the CTP is fair and effective in safeguarding the role that these markets play in their local financial ecosystem. The Commission should be empowered to revise the mechanism of allocation by way of a delegated act, where necessary or appropriate.
Amendment 174 #
Proposal for a regulation
Recital 32
Recital 32
(32) Financial intermediaries should strive to achieve the best possible price and the highest possible likelihoodquality of execution for trades that they execute on behalf of their clients. To that end, financial intermediaries should select the trading venue or counterparty for executing their client trades solely on the basis of achieving best execution for their clients. It should be incompatible with that principle of best execution that a fFinancial intermediaryies receivesing a payment from a trading counterpart in exchange for ensuring the execution of client trades. Investment firms should be therefore be prohibited from receiving such paymentadhere to strict governance and transparency rules.
Amendment 177 #
Proposal for a regulation
Recital 33
Recital 33
(33) The Commission should adopt the draft regulatory technical standards developed by ESMA regarding the precise characteristics of the deferral regime for non-equity transactions, regarding the provision of information on a reasonable commercial basis, regarding the application of the synchronised business clocks by trading venues, systematic internalisers, APAs and CTPs and regarding characteristics of the public reporting obligation of the CTP. The Commission should adopt those draft regulatory technical standards by means of delegated acts pursuant to Article 290 TFEU and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 225 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – Pararaph 1 – Point 36b – Point b – introductory part
Article 2 – Pararaph 1 – Point 36b – Point b – introductory part
(b) all of the following data on nbon- equids and OTC derivatives subject to the clearing obligation:
Amendment 240 #
Proposal for a regulation
Article 1 – paragraph 4 – point b
Article 1 – paragraph 4 – point b
Regulation (EU) No 600/2014
Article 5 – Paragraph 1
Article 5 – Paragraph 1
1. Trading venues shall suspend their use of the waivers referred to in Article 4(1), point (a), and 4(1), point (b)(iand systematic internalisers shall suspend trading as referred to in paragraph 4(b) where the percentage of this volume traded in the Union in a financial instrument carried out under those waivers exceeds 7% of the total volume traded in that financial instrument in the Union. Trading venues shall base their decision to suspend the use of those waiversexceeds the threshold determined by ESMA in accordance with paragraph 9. Trading venues and systematic internalisers shall base their decision on the data published by ESMA in accordance with paragraph 4, and shall take such decision within two working days after this publication of those data and for a period of six months.;
Amendment 246 #
Proposal for a regulation
Article 1 – paragraph 4 – point d
Article 1 – paragraph 4 – point d
Regulation (EU) No 600/2014
Article 5 – Paragraph 4 – Point b
Article 5 – Paragraph 4 – Point b
(b) the percentage of trading in a financial instrument carried out across the Union under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i) ), and without pre-trade transparency for orders subject to the share trading obligation and outside the waivers referred to in Article 4(1);
Amendment 248 #
Proposal for a regulation
Article 1 – paragraph 4 – point f
Article 1 – paragraph 4 – point f
Regulation (EU) No 600/2014
Article 5 – Paragraph 7
Article 5 – Paragraph 7
7. To ensure a reliable basis for monitoring the trading taking place under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(ias referred to in paragraph 4(b) and for determining whether the limits referred to in paragraph 1 have been exceeded, operators of trading venues and systematic internalisers shall have in place systems and procedures to enable the identification of all trades referred to in paragraph 4(b) which have taken place on their venue under those waivers.;execution venue.
Amendment 251 #
Proposal for a regulation
Article 1 – paragraph 4 – point f a (new)
Article 1 – paragraph 4 – point f a (new)
Regulation (EU) No 600/2014
Article 5 – Paragraph 9
Article 5 – Paragraph 9
(f a) Paragraph 9 is replaced by the following : "ESMA shall develop draft regulatory technical standards to specify the following: (a) the volume cap threshold as outlined in paragraph 1 and the method by which it is defined. When defining the possible threshold, ESMA should take into account the impact of that measure on price formation, liquidity, and end investors’ outcomes; (b) the method, including the flagging of transactions, by which it collates, calculates and publishes the transaction data, as outlined in paragraph 4, in order to provide an accurate measurement of the total volume of trading per financial instrument and the percentages of trading that use those waivers across the Union and per trading venue. ESMA shall submit those draft regulatory technical standards to the Commission by 3 July 2015[six months after the date of entry into force of this amending Regulation. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. ’; ESMA shall review the appropriateness of the level of the volume cap at least every two years and submit updates to the regulatory technical standards if necessary. " Or. en (02014R0600-20220101)
Amendment 255 #
Proposal for a regulation
Article 1 – paragraph 5 a (new)
Article 1 – paragraph 5 a (new)
Regulation (EU) No 648/2012
Article 10 – Paragraph 1
Article 10 – Paragraph 1
(5 a) Article 10, paragraph 1 is replaced by: "'1. Market operators and investment firms operating a trading venue shall make public the price, volume and time of the transactions executed in respect of bonds, structured finance products, emission allowances and derivatives traded on a trading venue. Market operators and investment firms operating a trading venue shall make details of all such transactions public as close to real-time as is technically possible. The publication obligation shall not apply to derivative transactions of non-financial counterparties which are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity of the non- financial counterparty or of that group. " Or. en (02014R0600-20220101)
Amendment 260 #
Proposal for a regulation
Article 1 – paragraph 6 – point a – point i
Article 1 – paragraph 6 – point a – point i
Regulation (EU) No 600/2014
Article 11 – Paragraph 1 – Subparagraph 1
Article 11 – Paragraph 1 – Subparagraph 1
Based on the deferral regime as set out in paragraph 4, competent authorities shall authorise market operators and investment firms operating a trading venue to defer the publication of the price of transactions until the end of the trading day, or the volume of transactions for a maximum of twoone weeks.;
Amendment 268 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 600/2014
Article 13 – Paragraph 3
Article 13 – Paragraph 3
Amendment 279 #
Proposal for a regulation
Article 1 – paragraph 7 d (new)
Article 1 – paragraph 7 d (new)
Regulation (EU) No 600/2014
Article 14
Article 14
Article 14 Obligation for systematic internalisers to make public firm quotes in respect of shares, depositary receipts, ETFs, certificates and other similar financial instruments 1. Investment firms shall make public firm quotes in respect of those shares, depositary receipts, ETFs, certificates and other similar financial instruments traded on a trading venue for which they are systematic internalisers and for which there is a liquid market. Where there is not a liquid market for the financial instruments referred to in the first subparagraph, systematic internalisers shall disclose quotes to their clients upon request. 2. This Article and Articles 15, 16 and 17 shall apply to systematic internalisers when they deal in sizes up to standard market size. Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above standard market size. 3. Systematic internalisers may decide the size or sizes at which they will quote. The minimum quote size shall be at least the equivalent of 10 % of the standard market size of a share, depositary receipt, ETF, certificate or other similar financial instrument traded on a trading venue. For a particular share, depositary receipt, ETF, certificate or other similar financial instrument traded on a trading venue each quote shall include a firm bid and offer price or prices for a size or sizes which could be up to standard market size for the class of shares, depositary receipts, ETFs, certificates or other similar financial instruments to which the financial instrument belongs. The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or other similar financial instrument. 4. Shares, depositary receipts, ETFs, certificates and other similar financial instruments shall be grouped in classes on the basis of the arithmetic average value of the orders executed in the market for that financial instrument. The standard market size for each class of shares, depositary receipts, ETFs, certificates and other similar financial instruments shall be a size representative of the arithmetic average value of the orders executed in the market for the financial instruments included in each class. 5. The market for each share, depositary receipt, ETF, certificate or other similar financial instrument shall be comprised of all orders executed in the Union in respect of that financial instrument excluding those that are large in scale compared to normal market size. 6. The competent authority of the most relevant market in terms of liquidity as defined in Article 26 for each share, depositary receipt, ETF, certificate and other similar financial instrument shall determine at least annually, on the basis of the arithmetic average value of the orders executed in the market in respect of that financial instrument, the class to which it belongs. That information shall be made public to all market participants and communicated to ESMA which shall publish the information on its website. 7. In order to ensure the efficient valuation of shares, depositary receipts, ETFs, certificates and other similar financial instruments and maximise the possibility of investment firms to obtain the best deal for their clients, ESMA shall develop draft regulatory technical standards to specify further the arrangements for the publication of a firm quote as referred to in paragraph 1, the determination of whether prices reflect prevailing market conditions as referred to in paragraph 3, and of the standard market size as referred to in paragraphs 2 and 4. ESMA shall submit those draft regulatory technical standards to the Commission by 3 July 2015. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. is deleted " Or. en (02014R0600-20220101)
Amendment 280 #
Proposal for a regulation
Article 1 – paragraph 8 – point a
Article 1 – paragraph 8 – point a
Regulation (EU) No 600/2014
Article 14 – Paragraph 2 and 3
Article 14 – Paragraph 2 and 3
Amendment 290 #
Proposal for a regulation
Article 1 – paragraph 8 – point b
Article 1 – paragraph 8 – point b
Regulation (EU) No 600/2014
Article 14 – Paragraph 6a
Article 14 – Paragraph 6a
Amendment 294 #
Proposal for a regulation
Article 1 – paragraph 8 ba (new)
Article 1 – paragraph 8 ba (new)
Regulation (EU) No 600/2014
Article 14 a (new)
Article 14 a (new)
Amendment 296 #
Proposal for a regulation
Article 1 – paragraph 8 c (new)
Article 1 – paragraph 8 c (new)
Regulation (EU) No 600/2014
Article 15 – paragraph 1
Article 15 – paragraph 1
Amendment 299 #
Proposal for a regulation
Article 1 – paragraph 8 a (new)
Article 1 – paragraph 8 a (new)
Regulation (EU) No 600/2014
Article 15 – paragraph 4
Article 15 – paragraph 4
(b) paragraph 4 is deleted.;
Amendment 301 #
Proposal for a regulation
Article 1 – paragraph 8 a (new)
Article 1 – paragraph 8 a (new)
Regulation (EU) No 600/2014
Article 15 – paragraph 5
Article 15 – paragraph 5
Amendment 304 #
Proposal for a regulation
Article 1 – paragraph 8 f (new)
Article 1 – paragraph 8 f (new)
Regulation (EU) No 600/2014
Article 16
Article 16
Article 16 is amended as follows: (a) paragraph 1 is replaced by the following: ‘The competent authorities shall check the following: (a) that investment firms regularly update bid and offer prices published in accordance with Article 14 and maintain prices which reflect the prevailing market conditions; (b) that investment firmsfirms that meet the definition of systematic internaliser comply with the conditions for order execution laid down in Article 15(1); (b) that firms that meet the definition of systematic internaliser comply with the conditions for price improvement laid down in Article 15(2).’;
Amendment 307 #
Proposal for a regulation
Article 1 – paragraph 8 h (new)
Article 1 – paragraph 8 h (new)
Regulation (EU) No 600/2014
Article 17 – Paragraph 3
Article 17 – Paragraph 3
(8 c) Article 17 is amended as follows: (a) paragraph 3 is replaced by the following: ‘3. In order to ensure the efficient valuation of shares, depositary receipts, ETFs, certificates and other similar financial instruments and maximise the possibility for investment firms to obtain the best deal for their clients, the Commission shall adopt delegated acts in accordance with Article 50 specifying: (a) the criteria specifying when a quote is published on a regular and continuous basis and is easily accessible as referred to in Article 15(1) as well as the means by which investment firms may comply with their obligation to make public their quotes, which shall include the following possibilities: i. through the facilities of any regulated market which has admitted the financial instrument in question to trading; ii. through an APA; iii. through proprietary arrangements; (b) the criteria specifying those transactions where execution in several securities is part of one transaction or those orders that are subject to conditions other than current market price as referred to in Article 15(3); (c) the criteria specifying what can be considered as exceptional market conditions that allow for the withdrawal of quotes as well as the conditions for updating quotes as referred to in Article 15(1); (dthose transactions where execution in several securities is part of one transaction or those orders that are subject to conditions other than current market price as referred to in Article 15(3); (b) the criteria specifying when the number and/or volume of orders sought by clients considerably exceeds the norm as referred to in paragraph 2.; (ec) the criteria specifying when prices fall within a public range close to market conditions as referred to in Article 15(2).’;
Amendment 309 #
Proposal for a regulation
Article 1 – paragraph 9
Article 1 – paragraph 9
Regulation 600/2014 (EU)
Article 17a – Paragraph 2
Article 17a – Paragraph 2
2. The application of the tick sizes set in accordance with Article 49 of Directive 2014/65/EU shall not prevent systematic internalisers from matching orders large in scale at mid-point within the current bid and offer prices. Matching orders at mid- point within the current bid and offer prices below large in scale but above twice the standard market size shall be allowed in so far as those tick sizes are complied with.;
Amendment 322 #
Proposal for a regulation
Article 1 – paragraph 10
Article 1 – paragraph 10
Regulation (EU) No 600/2014
Article 22a – paragraph 1
Article 22a – paragraph 1
1. MAll market data contributors shall, with regard to shares, ETFs and bonds that are traded on a trading venue, and with regard to OTC derivatives as defined in Article 2(7) of Regulation (EU) No 648/2012 that are subject to the clearing obligation as referred to in Article 4 of that Regulation, provide the CTP with all the market data as set out in Article 22b(2) as needed for the CTP to be operational. Those market data shall be provided in a harmonised format, through a high quality transmission protocol, and as close to real-time as is technically possiblwith a delay of one minute.
Amendment 345 #
Proposal for a regulation
Article 1 – paragraph 10
Article 1 – paragraph 10
Regulation (EU) No 600/2014
Article 22b – paragraph 1
Article 22b – paragraph 1
Amendment 350 #
Proposal for a regulation
Article 1 – paragraph 10
Article 1 – paragraph 10
Regulation (EU) No 600/2014
Article 22b – Paragraph 2– first subparagraph
Article 22b – Paragraph 2– first subparagraph
2. The Commission shall be empowered to adopt delegated acts in accordance with Article 50 to specify the quality and the substance of the market data and, the quality of the transmission protocol, measures to address erroneous trade reporting and enforcement standards in relation to data quality.
Amendment 354 #
Proposal for a regulation
Article 1 – paragraph 10
Article 1 – paragraph 10
Regulation (EU) No 600/2014
Article 22b – Paragraph 2 – third subparagraph
Article 22b – Paragraph 2 – third subparagraph
For the purposes of the first subparagraph, the Commission shall take into account the advice from ESMA and from the technical exp, ESMA's stakeholdert group established in accordance with paragraph 2s, feedback received via public consultations, international developments, and standards agreed at Union or international level. The Commission shall ensure that the delegated acts adopted take into account the reporting requirements laid down in Articles 3, 6, 8, 10, 14, 18, 20, 21 and 27g.
Amendment 363 #
Proposal for a regulation
Article 1 – paragraph 15
Article 1 – paragraph 15
Regulation (EU) No 600/2014
Article 27da – Paragraph 1
Article 27da – Paragraph 1
1. By [OP insert date 3 months as of entry into force]Once the delegated act referred to in Article 22b has been adopted and ESMA has concluded that available market data for the respective asset class is of sufficient quality, ESMA shall organise a selection procedure for the appointment of the CTP for bonds for a five year term. ESMA shall organise a separate selection procedure for each of the following asset classes: shares, exchange traded funds, bonds and derivatives (or relevant subclasses of derivatives). 12 months after the entry into force of the CT for bonds ESMA shall organise a separate selection procedure for the appointment of the CTP for derivatives (or relevant subclasses of derivatives) for a five year term. 24 months after the entry into force of the CT for bonds ESMA shall organise a separate selection procedure for the appointment of the CTP for shares and exchange traded funds for a five year term.
Amendment 387 #
Proposal for a regulation
Article 1 – paragraph 15
Article 1 – paragraph 15
Regulation (EU) No 600/2014
Article 27da – paragraph 3
Article 27da – paragraph 3
3. The first selection procedure organised for sharall asset classes shall only invite bids for the provision of a consolidated tape containing post trade data. Prior to subsequent selection procedures, ESMA shall assess market demand and revenue impacts on regulated markets and based on that assessment, report to the Commission on the opportunity of adding best bids and offers and corresponding volumes to the tape. Based on that report and on the experience gained further to the first selection procedure, the Commission is empowered to adopt a delegated act specifying the appropriate level of pre-trade data to be contributed to the CTP with a delay of one minute.
Amendment 408 #
Proposal for a regulation
Article 1 – paragraph 15
Article 1 – paragraph 15
Regulation (EU) 600/2014
Article 27da – Paragraph 5
Article 27da – Paragraph 5
5. ESMA shall adopt a fully reasoned decision selecting and authorising the entities operating the consolidated tapes within 3 months as of initiation of the selection procedure referred to in paragraph 2. Such reasoned decision shall specify the conditions under which the CTPs shall operate, and in particular the level of fees referred to in paragraph 2, point (g) and for shares the level of the participation referred to in paragraph 3, in particular for smaller regulated markets. Once authorized and mandated by ESMA, the consolidated tape provider should be granted a transition period of 6 months to ensure the operational and technical set- up in accordance with the respective regulatory technical standards before the operation of the consolidated tape goes live. During this transition period, the CTP shall allow data providers to connect and test the connection to the CTP for data contribution.
Amendment 417 #
Proposal for a regulation
Article 1 – paragraph 16
Article 1 – paragraph 16
Regulation (EU) 600/2014
Article 27h – paragraph 1 – subparagraph 1 – point c
Article 27h – paragraph 1 – subparagraph 1 – point c
(c) in the case of market data concerning shares, redistribute part of their revenues for the purposes of covering the cost related to mandatory contribution and of ensuring a fair level of participation for regulated markets, and in particular smaller regulated markets and SME Growth Markets, in the revenue generated by the consolidated tape, in accordance with Article 27da(4);
Amendment 421 #
Proposal for a regulation
Article 1 – paragraph 16
Article 1 – paragraph 16
Regulation (EU) No 600/2014
Article 27h – paragraph 1 – subparagraph 1 – point d
Article 27h – paragraph 1 – subparagraph 1 – point d
(d) make consolidated core market data, for the provision of which the CTP is selected in accordance with Article 27da, available in accordance with the data quality requirements set out in Article 22b to users into a continuous electronic data stream on non-discriminatory terms as close to real time as technically possiblwith a delay of one minute;
Amendment 423 #
Proposal for a regulation
Article 1 – paragraph 16
Article 1 – paragraph 16
Regulation (EU) No 600/2014
Article 27h – Paragraph 1 – first subparagraph - point fa (new)
Article 27h – Paragraph 1 – first subparagraph - point fa (new)
(f a) ensure that the use of core market data is strictly limited to the collection, consolidation, and redistribution of such data. Any additional value-added services should be subject to additional licensing terms set out by each market data contributor.
Amendment 432 #
Proposal for a regulation
Article 1 – paragraph 16
Article 1 – paragraph 16
Regulation (EU) 600/2014
Article 27h – Paragraph 4
Article 27h – Paragraph 4
4. After 128 months of full operation of the CTP for shares, ESMA shall provide the Commission with a motivated opinion on the effectiveness and fairness of the level of participation of regulated markets, and in particular of smaller regulated markets and SME Growth Markets, in the revenues generated by the CTP as set out in accordance with the second subparagraph of paragraph 1. The Commission may request ESMA to provide further opinions, where necessary or appropriate. The Commission shall be empowered to adopt a delegated act in accordance with Article 50 to revise the allocation key for the revenue redistribution, where appropriate.;
Amendment 450 #
Proposal for a regulation
Article 1 – paragraph 26
Article 1 – paragraph 26
Regulation (EU) No 600/2014
Article 39 a (new) – title
Article 39 a (new) – title
Article 39a Ban on payment forRules on execution and forwarding of retail client orders for execution
Amendment 456 #
Proposal for a regulation
Article 1 – paragraph 26
Article 1 – paragraph 26
Regulation (EU) No 600/2014
Article 39a
Article 39a
(1) Investment firms acting on behalf of clients shall not receive any fee or commission or non-monetary benefits from any third party for forwarding client orders to such third party for their execution.; , unless the investment firm complies with all of the following conditions: i) the investment firm obtains the client’s explicit consent to the arrangement; ii) the investment firm complies with the obligation to execute orders on terms most favourable to the client as provided for in Article 27 of Directive 2014/65/EU at all times; iii) the client is informed about the applicable costs and charges in line with Article 24(4) of Directive2014/65/EU and Article 50 of Commission Delegated Regulation (EU) 2017/565; iv) the fee, commission or non-monetary benefit meets the quality enhancement test as provided for in Article 11 of Commission Delegated Directive (EU) 2017/593; (2) An investment firm that routes client orders to a particular execution venue as defined in Article 64(1) of Commission Delegated Regulation (EU) 2017/565 in exchange of a payment from such a venue shall make available to the public on a annual basis, and within one month after the end of the year in consideration, a report that discloses at least: (i) for each of the top five execution venues the net aggregate amount of any payment for order flow received from that execution venue during the year in consideration, and the number and value of orders routed to such execution venue in exchange for this payment ; (ii) a disclosure of the material aspects of the firm's relationship with each of the top five execution venues , including a description of any arrangement for payment for order flow and a description of any terms of such arrangements that may influence a firm’s order routing decision. (3) ESMA shall develop draft regulatory technical standards to determine the content and the format of information to be published in accordance with paragraph 2 by investment firms that receive payments for order flow. ESMA shall submit those draft regulatory technical standards to the Commission by [9 months after entry into force of the Amending Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. (4) Every year, ESMA shall publish a report analysing the content of the reports published in accordance with paragraph 2 by investment firms that receive payments for order flow. That report shall provide a detailed account of the development of the reception of payments for order flows by investment firms in the EU, and analyse whether the receipt of payment for order flow is incompatible with the requirement to execute orders from retail clients on terms most favourable to them.
Amendment 462 #
Proposal for a regulation
Article 1 – paragraph 26 a (new)
Article 1 – paragraph 26 a (new)
Regulation (EU) No 600/2014
Article 49 – Paragraph 2 – point b a (new)
Article 49 – Paragraph 2 – point b a (new)
(26 a) in Article 49(2), the following point is added: ‘(ba) in the case of shares with a non- EEA ISIN, or shares referred to in Article 23(1), point (a), for which the venue that is the most relevant market in terms of liquidity is in a third country, venues may apply the same tick size that applies on that venue.’;
Amendment 463 #
Proposal for a regulation
Article 1 – paragraph 28 – point a
Article 1 – paragraph 28 – point a
Regulation (EU) No 600/2014
Article 52 – Paragraph 11 - Introductory part
Article 52 – Paragraph 11 - Introductory part
11. Three yearEighteen months after the first authorisation of a consolidated tape, the Commission shall, after having consulted ESMA, submit a report to the European Parliament and to the Council on the following:
Amendment 464 #
Proposal for a regulation
Article 1 – paragraph 28 – point a
Article 1 – paragraph 28 – point a
Regulation (EU) No 600/2014
Article 52 – Paragraph 12
Article 52 – Paragraph 12
12. If by [OP insert date 1 year as of entry into force], no consolidated tape has emerged through the selection procedure organised by ESMA as referred to in Article 27da, the Commission shall review the framework and may accompany that review, where appropriate and after having consulted ESMA, with a legislative proposal setting out how ESMA should provide a consolidated tape.;addressing the identified shortcomings.