18 Amendments of Elisa FERREIRA related to 2011/0296(COD)
Amendment 98 #
Proposal for a regulation
Recital 6
Recital 6
(6) Definitions of regulated market and MTF should be introduced andclarified and remain closely aligned with each other to reflect the fact that they represent the same organised trading functionality. The definitions should exclude bilateral systems where an investment firm enters into every trade on own account, even as a riskless counterparty interposed between the buyer and seller. The term ‘'system’' encompasses all those markets that are composed of a set of rules and a trading platform as well as those that only function on the basis of a set of rules. Regulated markets and MTFs are not obliged to operate a ‘'technical’' system for matching orders. A market which is only composed of a set of rules that governs aspects related to membership, admission of instruments to trading, trading between members, reporting and, where applicable, transparency obligations is a regulated market or an MTF within the meaning of this Directive and the transactions concluded under those rules are considered to be concluded under the systems of a regulated market or an MTF. The term ‘'buying and selling interests’' is to be understood in a broad sense and includes orders, quotes and indications of interest. The requiremento address one of the main ambiguities created by the original Directive, the definitions of Regulated markets and MTFs should not include any reference to a requirement on these trading venues. The current requirements on these two venue types should be kept the same, but be presented separately from the definitions to ensure that the definition captures the trading functionality which then becomes subject to a clear set of rules. One of the important requirements concerns the obligation that the interests be brought together in the system by means of non- discretionary rules set by the system operator, which means that they are brought together under the system's rules or by means of the system's protocols or internal operating procedures (including procedures embodied in computer software). The term ‘'non-discretionary rules’' means that these rules leave the investment firm operating an MTF with no discretion as to how interests may interact. The definitions require that interests be brought together in such a way as to result in a contract, meaning that execution takes place under the system's rules or by means of the system's protocols or internal operating procedures.
Amendment 102 #
Proposal for a regulation
Recital 7
Recital 7
(7) In order to make European markets more transparent, safer, more efficient, and to level the playing field between various venues offering trading services, it is necessary to introduce a newclarify the existing categoryies of organised trading facility (OTF). This new category is broadly definedtrading venues so that all functionally identical trading is subject to identical rules. These clarifications should cover all the major sources of ambiguity so that now and in the future ithe existing trading venues should be able to capture all types of organised execution and arranging of trading which do not correspond to the functionalities or regulatory specifications of existing venues. Consequently appropriate, identical organisational requirements and transparency rules which support efficient price discovery need to be applied. The new category includesas well as identical rules aimed at ensuring objective, non- discretionary execution and non- discriminatory access to the platforms need to be applied. The clarifications of the RM, MTF and SI definitions should ensure that broker crossing systems, which can be described as internal electronic matching systems operated by an investment firm which execute client orders against other client orders. The new category, are regulated either as MTFs or SIs, depending on which trading functionality they have. The clarified definitions of RMs, MTFs and SIs should also encompasses systems eligible for trading clearing-eligible and sufficiently liquid derivatives. IBy contrast, it shall not include facilities where there is no genuine trade execution or arranging taking place in the system, such as bulletin boards used for advertising buying and selling interests, other entities aggregating or pooling potential buying or selling interests, or electronic post-trade confirmation services., should continue to be defined as OTC. (This amendment (i.e. the deletion of "OTF") applies throughout the text. Adopting it will necessitate corresponding changes throughout including the definition in article 2.)
Amendment 111 #
Proposal for a regulation
Recital 8
Recital 8
(8) This new category of organisede clarification of the existing types of trading venues is needed to ensure that all multilateral and bilateral trading facility will complement the existing types of trading venues. Whiletivities are subject to the same rules. In particular, the clarifications of the definitions of and the regimes imposed on regulated markets and multilateral trading facilities are characterised byshould clarify that both trading venues must have non- discretionary execution of transactions, the operator of an organised trading facility should have discretion over how a transaction is to be executed. The non- discretionary execution of transactions in a RM or MTF is fully separate from, and complementary to, the client-facing requirements imposed on intermediaries when executing client orders. Consequently, conduct of business rules, best execution and client order handling obligations should continue to apply to the transactions concluded on an O RM or MTF operated by an investment firm or a market operator. However, because an OTF constitutes a genuine trading pthe market- facing regulatform, the platform operator should be neutral. Therefore, the operator of an OTF should not be allowed to execute in the OTF any transaction between multiple third-party buying and selling interests including client orders brought together in the system against his own proprietary capital. This also excludes them from acting as systematic internay duties associated with operating a trading platform are different from the client-facing duties of an intermediary, both types of platforms must continue to be subject to the requirement to delisvers in the OTF operated by them non-discretionary execution.
Amendment 133 #
Proposal for a regulation
Recital 16
Recital 16
(16) An investment firm executing client orders against own proprietary capital should be deemed a systematic internaliser, unless the transactions are carried out outside regulated markets, MTFs and OTFs on an occasional, ad hoc and irregular basin an over-the-counter (OTC) basis. OTC trading refers to bilateral trading outside systematic internalisers on an occasional, ad hoc and irregular basis with eligible counterparties and at sizes above standard market size. Any platform by definition cannot be considered as OTC since it cannot be ad hoc or irregular. Any trading that combines the characteristics of multilateral and bilateral trading should also not be considered as OTC, and instead be split into its separate multilateral and bilateral components. Systematic internalisers should be defined as investment firms which, on an organised, frequent and systematic basis, deal on own account by executing client orders outside a regulated market, an MTF or an OMTF. In order to ensure the objective and effective application of this definition to investment firms, any bilateral trading carried out with clients should be relevant and quantitative criteria should complement the qualitative criteria for the identification of investment firms required to register as systematic internalisers, laid down in Article 21 of Commission Regulation No 1287/2006 implementing Directive 2004/39/EC. While an OTF is any system or facility in which multiple third party buying and selling interests interact in the system, aA systematic internaliser should not be allowed to bring together third party buying and selling interests.
Amendment 146 #
Proposal for a regulation
Recital 18
Recital 18
(18) It is not the intention of this Regulation to require the application of pre-trade transparency rules as well as other market-facing rules imposed on trading venues to transactions carried out on an OTC basis, the characteristics of which includare that they are bilateral, ad-hoc and irregular and are carried out with wholesaeligible counterparties and are part of a business relationship which is itself characterised by dealings above standard market size, and where the deals are carried out outside the systems usually used by the firm concerned for its business as a systematic internaliser.
Amendment 166 #
Proposal for a regulation
Recital 31
Recital 31
Amendment 168 #
Proposal for a regulation
Recital 32
Recital 32
Amendment 172 #
Proposal for a regulation
Recital 33
Recital 33
Amendment 204 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2 a (new)
Article 2 – paragraph 1 – point 2 a (new)
(2 a) 'Multilateral system' means a system that brings together or facilitates the bringing together of buying and selling interests in financial instruments, whereby the operator does not take on capital risk, irrespective of the actual number of orders that are executed in the resulting transactions;
Amendment 205 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2 b (new)
Article 2 – paragraph 1 – point 2 b (new)
(2 b) 'Bilateral system' means a system that brings together or facilitates the buying and selling interests in financial instruments, whereby the operator of the investment firms takes on capital risk;
Amendment 206 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
(3) ‘systematic internaliser’ means an investment firm which, on an organised, frequent and systematic basis, deals on own account by executing client orders outside a regulated market or an MTF or an OTFcarries out bilateral trading;
Amendment 211 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
(5) ‘regulated market’ means a multilateral system operated and/or managed by a market operator, which brings together or facilitates the bringing together of multiple third-party buying and selling interests in financial instruments – in the system and in accordance with its non-discretionary rules – in a way that results in a contract, in respect of the financial instruments admitted to trading under its rules and/or systems, and which is authorised and functions regularly and in accordance with the provisions of Title III of Directive [new MiFID];
Amendment 217 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6
Article 2 – paragraph 1 – point 6
(6) ‘multilateral trading facility (MTF)’ means a multilateral system, operated by an investment firm or a market operator, which brings together multiple third-party buying and selling interests in financial instruments – in the system and in accordance with non-discretionary rules – in a way that results in a contract in accordance with the provisions of Title II of Directive [new MiFID];
Amendment 221 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6 a (new)
Article 2 – paragraph 1 – point 6 a (new)
(6 a) 'Over-the-counter (OTC) trading' means any bilateral trading which is, cumulatively, carried out by a broker outside a platform on its own account on an occasional, ad hoc and irregular basis with eligible counterparties and always at sizes above standard market size;
Amendment 240 #
Proposal for a regulation
Article 2 – paragraph 1 – point 25
Article 2 – paragraph 1 – point 25
(25) ‘trading venue’ means any regulated market, MTF or OTFSystematic Internaliser.
Amendment 598 #
Proposal for a regulation
Article 28
Article 28
Amendment 621 #
Proposal for a regulation
Article 29
Article 29
Amendment 657 #
Proposal for a regulation
Article 30
Article 30