28 Amendments of Sharon BOWLES related to 2010/0251(COD)
Amendment 145 #
Proposal for a regulation
Recital 4
Recital 4
(4) To set an end to the current fragmented situation in which some Member States have taken divergent measures and to restrict the possibility of divergent measures being taken by competent authorities it is important to address the potential risks arising from short selling and credit default swaps in a harmonised manner. The requirements to be imposed should address the identified risks without unduly detracting from the benefits that short selling providhaving a detrimental effect on the functioning of financial markets in the Union and taking into account differences toin the quality and efficiency of markeMember States and the potential economic impact of the requirements.
Amendment 167 #
Proposal for a regulation
Recital 12
Recital 12
(12) In addition to the transparency regime for the disclosure of net short positions in shares,The Commission should conduct a full and thorough analysis of the costs and benefits of introducing a requirement for the marking of sellhort orders that are executed on trading venues as short orders should be introduced to provide supplementary information about the volume of short sales of shares executed on trading venues. Information about short orders should be collated by the trading venue and published in summary form at least daily in order to also help competent authorities and market participants to monitor levels of short selling. Any decision to introduce such marking should be duly justified, and should not pre-empt the results of the Commission's analysis. The analysis should be made public.
Amendment 174 #
Proposal for a regulation
Recital 13
Recital 13
(13) Buying credit default swaps without having a long position in underlying sovereign debt or another position whose value is likely to be negatively impacted by a decline in the creditworthiness of the relevant sovereign can be, economically speaking, equivalent to taking a short position on the underlying debt instrument. The calculation of a net short position in relation to sovereign debt should therefore include credit default swaps relating to an obligation of a sovereign debt issuer. The credit default swap position should be taken into account both for the purposes of determining whether a natural or legal person has a significant net short position relating to sovereign debt that needs to be notified to a competent authority or a significant uncovered position in a credit default swap relating to an issuer of sovereign debt that needs to be notified to the authority.
Amendment 185 #
Proposal for a regulation
Recital 16
Recital 16
(16) Uncovered short selling of shares and sovereign debt is sometimes viewed asmay increasinge the potential risk of settlement failure and volatility. To reduce such risks it is appropriate to place proportionate restallay such concerns and to maintain a consistent international approach it is appropriate to base short sales on previously borrowed securictiones on uncovered short selling. The detailed restr on securities on which there are reasonable grounds to believe the securictions shoules can be borrowed takeing into account the different arrangements currently used for covered short selling. It is also appropriate to include requirements on trading venues relating to buy-in procedures and fines for failed settlement of transactions in those instruments. The buy-in procedures and late settlement requirements should set basic standards relating to settlement discipline.
Amendment 189 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) A common Union settlement discipline is important in order to create well-functioning Union financial markets. The creation of Union settlement discipline, including harmonised cash- compensation rules, penalty regime and harmonised enforcement rules such as buy-ins should be the subject of separate, wider settlement legislation to be proposed by the Commission during 2011.
Amendment 191 #
Proposal for a regulation
Recital 16 a (new)
Recital 16 a (new)
(16a) Sovereign credit default swaps should be based on the insurable interest principle whilst recognising that there can be interests in a sovereign state other than bond ownership.
Amendment 200 #
Proposal for a regulation
Recital 22
Recital 22
(22) In the case of a significant fall in the price of a financial instrument on a trading venue and legitimate concerns regarding a local or Union-wide systemic problem a competent authority should also have the ability to temporarily restrict short selling of the financial instrument on that venuewithin its own jurisdiction or request such restriction in other jurisdictions in order to be able to intervene rapidly where appropriate and for a 24 hour period to prevent a disorderly price fall of the instrument concerned.
Amendment 247 #
Proposal for a regulation
Article 3 – paragraph 6 – subparagraph 1 a (new)
Article 3 – paragraph 6 – subparagraph 1 a (new)
In the case of fund management activities, where different investment strategies are pursued in relation to a particular issuer through separate funds managed by the same fund manager, the calculation of net short and net long positions for the purposes of paragraphs 3, 4 and 5 shall take place at the level of each fund. Where the same investment strategy is pursued in relation to a particular issuer through more than one fund, the net short and net long positions in each of those funds shall be aggregated. Where two or more portfolios within the same entity are managed on a discretionary basis pursuing the same investment strategy in relation to a particular issuer those positions should be aggregated for the calculation of net short positions and net long positions.
Amendment 270 #
Proposal for a regulation
Article 6
Article 6
Amendment 276 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
A trading venue that has shares admitted to trading shall establish proceduror an investment firm which executes orders on behalf of clients in those instruments outside a trading venue shall establish procedures for exceptional circumstances that ensure that natural or legal persons executing orders on the trading venue or through the investment firm are in a position to mark sell orders as short orders if the seller is entering into a short sale of the share. The trading venue shall publish at least daily a summary of the volume of orders marked as short orders.
Amendment 286 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1 a (new)
Article 7 – paragraph 1 – subparagraph 1 a (new)
Amendment 329 #
Proposal for a regulation
Article 12 – paragraph 1 – introductory part
Article 12 – paragraph 1 – introductory part
1. A natural or legal person may only enter into a short sale ofhold a net short position in a share admitted to trading on a trading venue or a short sale of a sovereign debt instrument wherewhere, at the end of the trading day in which that position was reached, one of the following conditions is fulfilled:
Amendment 338 #
Proposal for a regulation
Article 12 – paragraph 1 – point a
Article 12 – paragraph 1 – point a
(a) the natural or legal person has borrowed the share or sovereign debt instrumenthas repurchased the share;
Amendment 352 #
Proposal for a regulation
Article 12 – paragraph 1 – point c
Article 12 – paragraph 1 – point c
(c) the natural or legal person has an arrangement with a third party under which that third party has confirmed that the share or sovereign debt instrument has been located and reserved for lending for the natural or legal personey have reasonable grounds to believe that the share can be borrowed so that settlement can be effected when it is due.
Amendment 361 #
Proposal for a regulation
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
1a. A natural or legal person may enter into credit default swap transactions relating to an obligation of a Member State or the Union only where that person has a long position in the sovereign debt of that issuer or other demonstrable interests in the sovereign state.
Amendment 379 #
Proposal for a regulation
Article 13 – paragraph 1 – introductory part
Article 13 – paragraph 1 – introductory part
1. A trading venue that has shares or sovereign debt admitted to trading shall ensure that it, or the central counterparty that provides clearing services for the trading venue, has procedures in place which comply with all of the following requirements:have in place rules to ensure that settlement can take place when it is due. Those rules, which should include buy-in facilities, shall be effective, proportionate and dissuasive to abuse.
Amendment 382 #
Proposal for a regulation
Article 13 – paragraph 1 – point a
Article 13 – paragraph 1 – point a
Amendment 387 #
Proposal for a regulation
Article 13 – paragraph 1 – point b
Article 13 – paragraph 1 – point b
Amendment 390 #
Proposal for a regulation
Article 13 – paragraph 1 – point c
Article 13 – paragraph 1 – point c
Amendment 394 #
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 1
Article 13 – paragraph 2 – subparagraph 1
Amendment 397 #
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 2
Article 13 – paragraph 2 – subparagraph 2
Amendment 401 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
Amendment 403 #
Proposal for a regulation
Article 13 a (new)
Article 13 a (new)
Amendment 464 #
Proposal for a regulation
Article 18 – paragraph 1 – point b a (new)
Article 18 – paragraph 1 – point b a (new)
(ba) the measure will not have a detrimental effect on the efficiency of financial markets, including reducing liquidity in those markets or creating uncertainty for market participants, which is disproportionate to its benefits.
Amendment 465 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
2. A measure under paragraph 1 may apply to credit default swap transactions of a specific class or to specific credit default swap transactions. The measure may apply in circumstances or be subject to exceptions specified by the competent authority. Exceptions may in particular be specified to apply to market making activities and primParagraph 1 shall not apply unless the competent authority of the Member State which has issued the relevant sovereign debt has taken a similary market activitieseasure.
Amendment 492 #
Proposal for a regulation
Article 24 – paragraph 1 – subparagraph 1 – point a
Article 24 – paragraph 1 – subparagraph 1 – point a
(a) require natural or legal persons who have net short positions in relation to a specific financial instrument or class of financial instrumentshare admitted to trading on a trading venue to notify a competent authority or to disclose to the public details of any such position above the threshold referred to in Article 7(2);
Amendment 495 #
Proposal for a regulation
Article 24 – paragraph 1 – subparagraph 1 – point d
Article 24 – paragraph 1 – subparagraph 1 – point d
Amendment 496 #
Proposal for a regulation
Article 24 – paragraph 1 – subparagraph 2
Article 24 – paragraph 1 – subparagraph 2
A measure may apply in circumstances or be subject to exceptions specified by the relevant competent authorityies. Exceptions may in particular be specified to apply to market making activities and primary market activities.