52 Amendments of Sirpa PIETIKÄINEN related to 2011/0295(COD)
Amendment 67 #
Proposal for a regulation
Recital 13
Recital 13
(13) Legal certainty for market participants should be enhanced through a closer definition of two of the elements essential to the definition of inside information, namely the precise nature of that information and the significance of its potential effect on the prices of the financial instruments, the related spot commodity contracts, or the auctioned products based on the emission allowances. For derivatives which are wholesale energy products, notably information required to be disclosed according to Regulation [Regulation (EU) No…... of the European Parliament and the Council on Wholesale Energy Market Integrity and Transparency] should be considered as inside information, and for commodity contracts, notably information which is required to be disclosed in accordance with legal or regulatory provisions at the Union or national level, market rules, contracts or customs, on the relevant commodity derivative or spot markets.
Amendment 71 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14 a) Trading in financial instruments for which a firm has received a request for a locate of an individual security, or for a confirmation of reasonable expectation of settlement, in order for a client to satisfy the requirements of the "Regulation on Short Selling and certain aspects of Credit Default Swaps" can be legitimate and should not therefore be in itself regarded as insider dealing.
Amendment 77 #
Proposal for a regulation
Recital 14 b (new)
Recital 14 b (new)
(14 b) A person who enters into transactions or issues orders to trade which are suspected as market manipulation may be able to establish that their reasons for entering into such transactions or issuing orders to trade were legitimate and that the transactions and orders to trade were in conformity with accepted practice. A sanction could still be imposed if the competent authority established that there was another, illegitimate, reason behind these transactions or orders to trade.
Amendment 83 #
Proposal for a regulation
Recital 14 c (new)
Recital 14 c (new)
(14 c) A practice that is accepted in a particular market cannot be considered applicable to other markets unless the competent authorities of such other markets have officially accepted that practice.
Amendment 86 #
Proposal for a regulation
Recital 14 c (new)
Recital 14 c (new)
Amendment 91 #
Proposal for a regulation
Recital 18
Recital 18
(18) This Regulation should provide measures regarding market manipulation that are capable of being adapted to new forms of trading or new strategies that may be abusive. To reflect the fact that trading of financial instruments is increasingly automated, it is desirable that market manipulation should be supplemented by examples of specific abusive strategies that may be carried out by algorithmicny available means of trading, including algorithmic and high frequency trading, as defined in MiFID. The examples provided are neither intended to be exhaustive nor are they intended to suggest that the same strategies carried out by other means would not also be abusive.
Amendment 97 #
Proposal for a regulation
Recital 21
Recital 21
(21) In order to ensure uniform market conditions between trading venues and facilities subject to this Regulation, operators of regulated markets, MTFs and OTFs should be required to adopt proportionate structural provisionand maintain effective arrangements and procedures aimed at preventing and detecting market manipulation and abusive practices.
Amendment 98 #
Proposal for a regulation
Recital 22
Recital 22
(22) Manipulation or attempted manipulation of financial instruments may also consist in placing orders which may not be executed. Further, a financial instrument may be manipulated through behaviour which occurs outside a trading venue. Therefore, persons who professionally arrange or execute transactions and are required to have systemand maintain effective arrangements and procedures in place to detect and report suspicious transactions. This should also reportinclude the reporting of suspicious orders and suspicious transactions that take place outside a trading venue.
Amendment 114 #
Proposal for a regulation
Recital 31
Recital 31
(31) Existing telephonerecordings of telephone conversations and data traffic records from investment firms executing transactions, and existing telephone and data traffic records from telecommunication operators constitute crucial, and sometimes the only, evidence to detect and prove the existence of insider dealing and market manipulation. Telephone and data traffic records may establish the identity of a person responsible for the dissemination of false or misleading information, that persons have been in contact at a certain time, and that a relationship exists between two or more people. In order to introduce a level playing field in the Union in relation to the access by competent authorities to telephone and existing data traffic records held by a telecommunication operator or the existing recordings of telephone conversations and data traffic held by an investment firm, competent authorities should be able to require existing telephone and existing data traffic records held by a telecommunication operator orand existing recordings of telephone conversations as well as data traffic held by an investment firm, where a reasonable suspicion exists that such records related to the subject- matter of the inspection may be relevant to prove insider dealing or market manipulation as defined in [new MAD] in violation of this Regulation or Directive [new MAD]. TAccess to telephone and data traffic records doheld by a telecommunications operator does not encompass the content of such recordsthe communication.
Amendment 119 #
Proposal for a regulation
Recital 32 a (new)
Recital 32 a (new)
(32 a) Early detection and effective investigation of market manipulation poses substantial difficulties for competent authorities. In particular when such manipulation is conducted through order-book activity the fragmentation of trading venues hinders market oversight due to lack of consolidated data. In order to address this shortcoming, an effective mechanism needs to be established to allow cross-market order-book surveillance. To that end, the competent authorities of the issuers' primary listing venue need to monitor order-book data from regulated markets and MTFs on a real-time basis. In accordance with Article 48(2) of Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments1, the competent authorities should be able to delegate surveillance tasks to third parties. This means that a competent authority that receives the data should consolidate order-book data and then forward it to the third party in charge of surveillance. The competent authority should allow that consolidated order-book data to be available upon request to other Member States' competent authorities should they require it for investigative purposes.
Amendment 141 #
Proposal for a regulation
Article 3 – paragraph 3
Article 3 – paragraph 3
3. The Commission shall adopt, by means of delegated acts in accordance with Article 31, measures specifydefining the conditions suchobjectives of the buy-back programmes and stabilisation measures referred to in paragraphs 1 and 2 need to adhere to, including conditions for trading, restricin order to benefit from the exemptions regarding time and volume, disclosure and reporting obligations, and price conditionsferred to in paragraph 1.
Amendment 142 #
Proposal for a regulation
Article 3 – paragraph 3 a (new)
Article 3 – paragraph 3 a (new)
3 a. ESMA shall develop draft regulatory technical standards to specify the conditions such buy-back programmes and stabilization measures referred to in paragraphs 1 and 2 need to adhere to, including conditions for trading, restrictions regarding time and volume, disclosure and reporting obligations, and price conditions. ESMA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by [...] Power is conferred to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation 1095/2010.
Amendment 143 #
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
1. This Regulation does not apply to transactions, orders or behaviou orders carried out in pursuit of monetary, exchange rate or public debt management policy by a Member State, by the European System of Central Banks, by a national central bank of a Member State, by any other ministry, agency or special purpose vehicle of a Member State, or by any person acting on their behalf and, in the case of a Member State that is a federal state, to such transactions, orders or behaviou orders carried out by a member making up the federation. It shall also not apply to such transactions, orders or behaviou orders carried out by the Union, a special purpose vehicle for several Member States, the European Investment Bank, an international financial institution established by two or more Member States, which has the purpose to mobilise funding and provide financial assistance to the benefit of its members that are experiencing or threatened by severe financing problems or the European Financial Stability Facility.
Amendment 147 #
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Amendment 153 #
Proposal for a regulation
Article 5 – paragraph 1 – point 6 a (new)
Article 5 – paragraph 1 – point 6 a (new)
6a. "accepted market practices" shall mean market practices that are accepted by the competent authority in accordance with the procedure laid down in Article 4a.
Amendment 163 #
Proposal for a regulation
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
(b) in relation to derivatives on commodities, information of a precise nature, which has not been made public, relating, directly or indirectly, to one or more such derivatives or to the related spot commodity contract, and which, if it were made public, would be likely to have a significant effect on the prices of such derivatives or related spot commodity contracts; notably information which is required to be disclosed in accordance with legal or regulatory provisions at the Union or national level, market rules, contracts or customs, on the relevant commodity derivatives or spot markets. or to have a distortive effect on the functioning of the commodity derivatives markets or to hinder supervision of the market concerned;
Amendment 173 #
Proposal for a regulation
Article 6 – paragraph 1 – point e
Article 6 – paragraph 1 – point e
(e) information not falling within paragraphs (a), (b), (c) or (d) relating to one or more issuers of financial instruments or to one or more financial instruments, which isalthough not generally available to the public, but is of a type that might reasonably be expected to subsequently require disclosure and which, if it were available to a reasonable investor, who regularly deals on the market and in the financial instrument or a related spot commodity contract concerned, would be regarded as relevant by that person as relevant:- when deciding the terms on which transactions in the financial instrument or a related spot commodity contract should be effected; and- in observing the standards of behaviour reasonably expected of that person in such a position in relation to the market.
Amendment 184 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. For the purposes of this Regulation, attempting to engage in insider dealing arises where a person possesses inside information and attempts to acquire or dispose of, for his own account or for the account of a third party, either directly or indirectly, financial instruments to which that information relates. The attempt to cancel or amend an order concerning a financial instrument to which the information relates on the basis of inside information where the order was placed before the person concerned possessed the inside information, shall also be considered an attempt to engage in insider dealing. Making an attempt for the purpose of this article is the taking of any step necessary to effect, cancel or amend a trade.
Amendment 194 #
Proposal for a regulation
Article 7 – paragraph 6 a (new)
Article 7 – paragraph 6 a (new)
6 a. Insider dealing does not arise where the person possessing inside information uses that information in the context of a public takeover bid for the purposes of gaining control of the company to which the information relates or proposing a merger with that company, provided that such information is disclosed in accordance with Article 6 of Directive 2004/25 or in accordance with Article 12 of this Regulation.
Amendment 197 #
Proposal for a regulation
Article 7 – paragraph 7
Article 7 – paragraph 7
7. Where the person referred to in paragraph 1this Article is a legal person, the provisions of that paragraphticle shall not apply to a transaction by the legal person if the legal person had in place effective arrangements which ensure that no person in possession of inside information relevant to the transaction had any involvement in the decision or behaved in such a way as to influence the decision or had any contact with those involved in the decision wherebycarried out by that person if: (a) that person did not encourage, recommend, induce or otherwise influence the natural person who made the decision on its behalf to acquire or dispose of financial instruments to which the information relates; an (b) the legal person had established, implemented and maintained adequate and effective internal arrangements and procedures to ensure that neither the natural person referred to in sub- paragraph (a), nor any other natural person who may have had any influence on the decision to acquire or dispose of those information could have been transmitted or its existence could have been indicatedstruments, was in possession of the inside information referred to in point (a).
Amendment 201 #
Proposal for a regulation
Article 7 – paragraph 8
Article 7 – paragraph 8
8. Paragraph 1This Article shall not apply to transactions conducted in the discharge of an obligation that has become due to acquire or dispose of financial instruments where that obligation results from an agreement concluded, or is to satisfy a legal or regulatory obligation that arose, before the person concerned possessed inside information.
Amendment 206 #
Proposal for a regulation
Article 7 – paragraph 9 a (new)
Article 7 – paragraph 9 a (new)
9 a. A person possessing inside information shall be deemed not to use that information, and therefore not to commit insider dealing, in the following circumstances: (a) when that person is acting as a market maker or as a body authorised to act as a counter party and the acquisition or disposal of financial instruments to which that information relates is made legitimately in the normal course of the exercise of his employment, profession or duties; or (b) when that person is authorised to execute orders on behalf of third parties, and the acquisition or disposal of financial instruments to which the order relates is made to carry out such an order legitimately in the normal course of the exercise of his employment, profession or duties; or
Amendment 217 #
Proposal for a regulation
Article 8 – paragraph 1 – point b
Article 8 – paragraph 1 – point b
(b) entering into a transaction, placing an order to trade or any other behaviour affecting the price, or likely to affect, the price or the normal functioning of one or several financial instruments or a related spot commodity contract, which employs a fictitious device or any other form of deception or contrivance; or
Amendment 228 #
Proposal for a regulation
Article 8 – paragraph 2 – introductory part
Article 8 – paragraph 2 – introductory part
2. For the purposes of this Regulation, an attempt to engage in market manipulation, whether or not it has the intended net effect, shall comprise the following:
Amendment 230 #
Proposal for a regulation
Article 8 – paragraph 2 a (new)
Article 8 – paragraph 2 a (new)
2 a. Making an attempt for the purpose of this article is the taking of any step necessary to effect any of the activities referred to in (a) and (b).
Amendment 237 #
Proposal for a regulation
Article 8 – paragraph 3 – point b
Article 8 – paragraph 3 – point b
(b) the buying or selling of financial instruments at the closeany stage of the trading period of the market with the effect or intention of misleading investors acting on the basis of the displayed prices, including the closing prices,
Amendment 241 #
Proposal for a regulation
Article 8 – paragraph 3 – point c – introductory part
Article 8 – paragraph 3 – point c – introductory part
(c) the sending of orders to a trading venue by means of algorithmic trading, includingany available means of trading, including electronic means such as algorithmic and high frequency trading, without an intention to trade but for the purpose of: distorting the fair functioning of the markets, including:
Amendment 253 #
Proposal for a regulation
Article 8 – paragraph 4 a (new)
Article 8 – paragraph 4 a (new)
4 a. Trading venues must ensure that they have regimes in place, as outlined in [MiFID Article 59], to ensure that no person, or persons acting in collaboration can secure a dominant position over the supply of, or demand for, a financial instrument or related spot commodity contracts which have the effect of fixing, directly or indirectly, purchase or sale prices or creating other unfair trading conditions.
Amendment 255 #
Proposal for a regulation
Article 8 – paragraph 4 b (new)
Article 8 – paragraph 4 b (new)
4 b. In order to ensure orderly markets, market participants are obliged to disclose additional information to the trading venue and the competent authority in order to facilitate the ability of a market operator to detect abusive behaviour and conduct an investigation. This information is comprised of the following: a) who stands behind an order; b) how the transaction was executed; what strategy was used to execute;
Amendment 256 #
Proposal for a regulation
Article 8 – paragraph 5
Article 8 – paragraph 5
5. The Commission may adopt, by means of delegated acts in accordance with Article 31, measuresESMA shall develop draft regulatory technical standards to specifying the indicators laid down in Annex I, in order to clarify their elements and to take into account technical developments on financial markets. . ESMA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by [....]*. Power is conferred to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation 1095/2010. ___________ *OJ please insert date: 12 months after the date of entry into force of this Regulation.
Amendment 260 #
Proposal for a regulation
Article 9 – paragraph 1 – point a
Article 9 – paragraph 1 – point a
(a) engage or attempt to engage in insider dealing; or
Amendment 262 #
Proposal for a regulation
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
Operators of trading venues shall have in place rules to avoid abusive order entry. Those rules shall provide that market participants that make more than [to be specified] ratio of orders to transactions pay an additional fee. The ratio shall be established by ESMA based upon the results of a feasibility study. The amount of the fee shall be established by the operator of the trading venue.
Amendment 268 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Any person professionally arranging or executing transactions in financial instruments shall have systemeffective arrangements and procedures in place to detect and report orders and transactions that might constitute insider dealing, market manipulation or an attempt to engage in market manipulation or insider dealing. If that person reasonably suspects that an order or transaction in any financial instrument, whether placed or executed on or outside a trading venue, might constitute insider dealing, market manipulation or an attempt to engage in market manipulation or insider dealing, the person shall notify the competent authority without delay.
Amendment 284 #
Proposal for a regulation
Article 12 – paragraph 5 – subparagraph 1 a (new)
Article 12 – paragraph 5 – subparagraph 1 a (new)
The competent authority shall, where appropriate, keep ESMA informed of developments in accordance with Article 18(1) of Regulation (EU) No 1095/2010.
Amendment 294 #
Proposal for a regulation
Article 12 – paragraph 9 – subparagraph 1 – introductory part
Article 12 – paragraph 9 – subparagraph 1 – introductory part
ESMA shall develop draft implementingregulatory technical standards to determine:
Amendment 295 #
Proposal for a regulation
Article 12 – paragraph 9 – subparagraph 1 – indent 1
Article 12 – paragraph 9 – subparagraph 1 – indent 1
– the technical meaconditions for appropriate public disclosure of inside information as referred to in paragraphs 1, 6 and 7;
Amendment 298 #
Proposal for a regulation
Article 12 – paragraph 9 – subparagraph 2
Article 12 – paragraph 9 – subparagraph 2
ESMA shall submit the draft implementingregulatory technical standards referred to in the first subparagraph to the Commission by [...]*. ___________ * OJ: please insert date: 12 months after the date of entry into force of this Regulation.
Amendment 299 #
Proposal for a regulation
Article 12 – paragraph 9 – subparagraph 3
Article 12 – paragraph 9 – subparagraph 3
Power is conferred to the Commission to adopt the implementingregulatory technical standards referred to in the first subparagraph in accordance with Articles 150 to 14 of Regulation 1095/2010.
Amendment 309 #
Proposal for a regulation
Article 13 – paragraph 4
Article 13 – paragraph 4
4. The Commission shall adopt, by means of delegated acts in accordance with Article 31, measures determining the content of a list as referred to in paragraph 1, includingESMA shall develop draft regulatory technical standards to determine the information as to the identities and the reasons for persons to be included on an insider list, and as referred to in paragraph 1, and to specify the conditions under which issuers of a financial instrument or emission allowance market participants, or entities acting on their behalf, are to draw up such a list, including the conditions under which such lists are to be updated, the time for which they are kept, and the responsibilities of the persons thereon.. ESMA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by [...]*. Power is conferred to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation 1095/2010. _____________ * OJ: please insert date: 12 months after the date of entry into force of this Regulation.
Amendment 318 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. Paragraph 1 shall not apply to transactions totalling under EUR 20,000 over the period of a calendar year.
Amendment 325 #
Proposal for a regulation
Article 14 – paragraph 6
Article 14 – paragraph 6
6. The Commission shall adopt, by means of delegated acts in accordance with Article 31, measures specifying the professional functions of persons who are considered to discharge managerial responsibility as referred to in paragraph 1, the types of association, including by birth as well as under civil and contractual law, considered to create a close personal association, the characteristics of a transaction referred to in paragraph 2 which trigger that duty, and the information that must be made public and the means of informing the public.
Amendment 326 #
Proposal for a regulation
Article 14 – paragraph 6 a (new)
Article 14 – paragraph 6 a (new)
6 a. ESMA shall develop draft regulatory technical standards to [specify the professional functions of persons who are considered to discharge managerial responsibility as referred to in paragraph 1,] the characteristics of a transaction referred to in paragraph 2 which trigger that duty, and the information that must be made public and the means of informing the public. ESMA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by [....]* Power is conferred to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation 1095/2010. ___________ *OJ: please insert date: 12 months after the date of entry into force of this Regulation.
Amendment 332 #
Proposal for a regulation
Article 17 – paragraph 2 – point a
Article 17 – paragraph 2 – point a
(a) requesthave access to any document in any form, and to receive or take a copy thereof;
Amendment 338 #
Proposal for a regulation
Article 17 – paragraph 2 – point f
Article 17 – paragraph 2 – point f
(f) require existing telephone and existing data traffic records held by a telecommunication operator or by an investment firm, where a reasonable suspicion exists that such records related to the subject-matter of the inspection may be relevant to prove insider dealing or market manipulation as defined in[new MAD] in violation of this Regulation or Directive [new MAD]; these records shall however not concern the content of the communication to which they relate.]recordings of telephone conversations, electronic communications and data traffic records held by an investment firm;
Amendment 343 #
Proposal for a regulation
Article 17 – paragraph 2 – point f a (new)
Article 17 – paragraph 2 – point f a (new)
(f a) require existing telephone and existing data traffic records held by a telecommunication operator, where such records may be relevant to prove insider dealing or market manipulation in violation of this Regulation or directive [new MAD]. The records referred to in this point shall not include the content of voice communications by telephone.
Amendment 346 #
Proposal for a regulation
Article 17 – paragraph 2 – point f b (new)
Article 17 – paragraph 2 – point f b (new)
(f b) request the freezing and/ or sequestration of assets;
Amendment 348 #
Proposal for a regulation
Article 17 – paragraph 2 – point f c (new)
Article 17 – paragraph 2 – point f c (new)
(f c) suspend trading of the financial instrument concerned;
Amendment 349 #
Proposal for a regulation
Article 17 – paragraph 2 – point f d (new)
Article 17 – paragraph 2 – point f d (new)
(f d) require temporary cessation of any practice that is contrary to the provisions of this regulation;
Amendment 351 #
Proposal for a regulation
Article 17 a (new)
Article 17 a (new)
Amendment 364 #
Proposal for a regulation
Article 25 – paragraph 1 – point a
Article 25 – paragraph 1 – point a
(a) a person engages or attempts to engage in insider dealing in breach of Article 9;
Amendment 396 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
The Commission shall be empowered to adopt delegated acts in accordance with Article 32 concerning the supplementing and amending of the conditions forobjectives of buy- back programmes and stabilisation of financial instruments, the definitions in this Regulation, the conditions for drawing up insider lists, the conditions relating to managers' transactions and the arrangements for persons who provide information that may lead to the detection of breaches of this Regulation.
Amendment 399 #
Proposal for a regulation
Article 35
Article 35