18 Amendments of Sirpa PIETIKÄINEN related to 2011/0296(COD)
Amendment 101 #
Proposal for a regulation
Recital 6
Recital 6
(6) Definitions of regulated market and MTF should be introducclarified and 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 requirementOne 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 105 #
Proposal for a regulation
Recital 7
Recital 7
(7) In order to make European markets more efficient and transparent and to level the playing field between various venues offering trading services it is necessary to introduce a new category of organised trading facility (OTF). This new category is broadly defined so that now and in the future it 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 venuesmake clear that venues that are in the same business are subject to the same rules. The existing trading venues should be able to capture all types of organised execution and arranging of trading. Trading needs to be subject to proper market rules (i.e. transparency, non- discretionary execution, non- discriminatory access, and full market surveillance). Consequently appropriathe organisational requirements and transparency rules which support efficient price discovery need to be applied. The new category includesshould be the same and subject to proper market rules. 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 whether they do multilateral or bilateral trading respectively. The clarified definitions of RMs, MTFs and SIs should also encompasses systems eligible for trading clearing-eligible and sufficiently liquid derivatives. It shall not includeBy contrast, 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 being carried out on over-the-counter (OTC) basis.
Amendment 115 #
Proposal for a regulation
Recital 8
Recital 8
(8) This new category of organised trading facility will complement the existing types of trading venues. While regulated marketse clarification of the existing types of RMs, MTFs, and SIs is needed to ensure that all multilateral and multbilateral trading faciltivities are characterised by non- discretionary execusubject to the same rules. In particular, the clarifications of transactions, the operator of an organisedhe definitions of and the regimes imposed on regulated markets and multilateral trading facilityies should have discretion over how a transaction is to be executedclarify that both trading venues must have non- discretionary execution of transactions. 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 platform, 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 , in addition to other market- facting as systematic internalisers in the OTF operated by themrules.
Amendment 123 #
Proposal for a regulation
Recital 12
Recital 12
(12) The financial crisis exposed specific weaknesses in the way information on trading opportunities and prices in financial instruments other than shares is available to market participants, namely in terms of timing, granularity, equal access, and reliability. Pre- and post-trade transparency requirements taking account of the different characteristics and market structures of specific types of instruments other than shares should thus be introduced. In order to provide a sound transparency framework for all relevant instruments, these should apply to bonds and structured finance products with a prospectus or which are admitted to trading either on a regulated market or are traded on a multilateral trading facility (MTF) or an organised trading facility (OTF), to derivatives which are traded or admitted to trading on regulated markets, MTFs and OTFs or considered eligible for central clearing, as well as, in the case of post- trade transparency, to derivatives reported to trade repositories. Therefore only those financial instruments traded purely OTC which are deemed particularly illiquid or are bespoke in their design would be outside the scope of the transparency obligations. (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment 139 #
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 irregularn OTC basis. 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 148 #
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 and market- facing rules enforced 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 209 #
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 OTFoes bilateral trading;
Amendment 213 #
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 215 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5 a (new)
Article 2 – paragraph 1 – point 5 a (new)
(5 a) 'Multilateral system' should be considered as a system that brings together buying and selling interests in financial instruments, whereby the operator does remains neutral, irrespective of the actual number of orders that are executed in the resulting transactions;
Amendment 216 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5 b (new)
Article 2 – paragraph 1 – point 5 b (new)
(5 b) 'Bilateral system' should be considered as a system that facilitates the buying and selling interests in financial instruments, whereby the operator of the investment firms takes its own capital risk;
Amendment 219 #
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 223 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6 a (new)
Article 2 – paragraph 1 – point 6 a (new)
(6 a) 'OTC (over-the-counter)' means bilateral execution of client orders, other than as a systematic internaliser, whereby a firm is dealing on own account, in an ad-hoc and irregular manner, with wholesale counterparties in sizes above the standard market size;
Amendment 225 #
Proposal for a regulation
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
Amendment 242 #
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 273 #
Proposal for a regulation
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2 a. Competent authorities and ESMA shall comply with the following general principles when granting waivers of transparency: - Transparency waivers shall only be accepted in cases when transparency would have a direct adverse effect for the investor placing the order; - No waiver shall result in a group of investors benefitting from other less informed investors by restricting transparency unduly; - No transparency waiver shall have the effect of limiting transparency on the whole market for the financial instruments to which the waiver applies;
Amendment 399 #
Proposal for a regulation
Title 3
Title 3
Transparency for investment firms trading OTC includingand acting as systematic internalisers
Amendment 630 #
Proposal for a regulation
Article 29 – paragraph 1 a (new)
Article 29 – paragraph 1 a (new)
1a. The access to trade feeds established in Art. 29.1 regarding derivative instruments other than OTC derivatives governed by Regulation [ ] (EMIR) shall only be required from trading venues representing more than 10% of the total European trading in derivative instruments.
Amendment 639 #
Proposal for a regulation
Article 29 – paragraph 4
Article 29 – paragraph 4
4. TFor financial instruments other than OTC derivatives, the competent authority of the trading venue may only deny a CCP access to a trading venue where such access would threaten the smooth or orderly functioning of markets. If a competent authority denies access on that basis it shall issue its decision within two months following receipt of the request referred to in paragraph 2 and provide full reasons to the trading venue and the CCP including the evidence on which its decision is based. For OTC derivatives, access of the CCP to a trading venue shall be granted in accordance with the provisions of Regulation [ ] (EMIR).