BETA

74 Amendments of Pascal CANFIN related to 2011/0296(COD)

Proposal for a regulation
Recital 7

(7) In order to make European markets more 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 c~~defined is defined in order to cover only cases where existing categorries~~pond to the functionalities or regulatory specifications of existing venues~~ appear to be inadequately designed. Consequently appropriate organisational requirements and transparency rules which support efficient price discovery need to be applied. The new category includes 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 also encompasses systems eligible for trading clearing-eligible and sufficiently liquid derivatives. 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.

2012/05/14
Committee: ECON

Proposal for a regulation
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.~~

2012/05/14
Committee: ECON

Proposal for a regulation
Recital 35

(35) The provision of services to retail clients should always require the establishment of a ~~branch~~subsidiary company in the Union. The establishment of the branch shall be subject to authorisation and supervision in the Union. Proper cooperation arrangements should be in place between the competent authority concerned and the competent authority in the third country. The provision of services without branches should be limited to eligible counterparties. It should be subject to registration by ESMA and to supervision in the third country. Proper cooperation arrangements should be in place between ESMA and the competent authorities in the third country.

2012/05/14
Committee: ECON

Proposal for a regulation
Recital 37

(37) A range of fraudulent practices have occurred in spot secondary markets in emission allowances (EUA) which could undermine trust in the emissions trading schemes, set up by Directive 2003/87/EC, and measures are being taken to strengthen the system of EUA registries and conditions for opening an account to trade EUAs. In order to reinforce the integrity and safeguard the efficient functioning of those markets, including comprehensive supervision of trading activity, it is appropriate to complement measures taken under Directive 2003/87/EC by bringing emission allowances fully into the scope of this Directive and of Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse)~~, by classifying them as financial instruments~~.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 1 a (new)

Article 1 a Obligation to trade on MIFID recognised markets 1. Retail clients and professional clients shall conclude transactions of normal market size in financial instruments on : (a) regulated markets; (b) MTFs; Where the financial instrument is not available on regulated markets or MTF, professional clients and retail clients may conclude transactions outside of a regulated market or an MTF. This requirement shall not apply to eligible counterparties. 2. Without prejudices to the obligations referred to in Article 24, eligible counterparties shall conclude transactions in financial instruments on : (c) regulated markets; (d) MTFs; (e) OTFs; (f) Systematic internalisers; (g) OTC Eligible counterparties may only conclude OTC transactions when the characteristics of which of the transaction include that they are ad-hoc and irregular and are carried out with wholesale 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.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 5

(5) ‘regulated market’ means a multilateral system, which brings together at least four different and independent participants and where no participant handles more than 30% of orders or transactions 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];

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 6

(6) ‘multilateral trading facility (MTF)’ means a multilateral system which brings together at least four different and independent participants and where not any participant handle more than 30% of orders or transactions, 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];

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 7

(7) ‘organised trading facility (OTF)’ means any system or facility, which is not a regulated market or MTF, operated by an investment firm or a market operator, in which multiple ~~third-~~wholesale counterpartyies buying and selling interests in less liquid financial instruments not listed on an MTF or a regulated market are able to interact in the system in a way that results in a contract in accordance with the provisions of Title II of Directive [new MiFID];

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 7 a (new)

(7 a) 'OTC' means transactions carried out outside a regulated market, a MTF, an OTF or a SI, the characteristics of which include that they are ad-hoc and irregular and are carried out with wholesale 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.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 8

(8) ‘financial instrument’ means those instruments specified in Section C of Annex I of Directive [new MiFID] and in Section CA of Annex I of Directive [new MiFID] for the exclusive purpose of this Directive, the Regulation (EU) No .../... [MiFIR] and of the Regulation (EU) No .../... [Market Abuse Regulation] and the directive (EU) No .../... [Market Abuse Directive];

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 8 a (new)

(8 a) 'wholesale counterparties' are eligible counterparties characterised by dealings above standard market size on a regular basis in a full range of sophisticated products and whose total assets exceed 1 billion euro;

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 29 a (new)

(29 a) 'bona fide hedging transactions' means transactions as defined under Directive [New MIFID]

2012/05/14
Committee: ECON

Proposal for a regulation
Article 2 – paragraph 1 – point 29 b (new)

(29 b) 'excessive speculation' means a trading activity as defined under Directive [New MIFID]

2012/05/14
Committee: ECON

Proposal for a regulation
Article 3 – paragraph 1

1. Regulated markets and investment firms and market operators operating an MTF or an OTF shall make public current bid and offer prices and the depth of trading interests at those prices which ~~are advertis~~can be executed through their systems for shares, depositary receipts, exchange-traded funds, certificates and other similar financial instruments admitted to trading or which are traded on an MTF or an OTF. This requirement shall also apply to actionable indications of interests. Regulated markets and investment firms and market operators operating an MTF or an OTF shall make this information available to the public on a continuous basis during normal trading hours.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 1

1. ~~Competent authorities shall be able to waive the obligation for r~~Regulated markets and investment firms and market operators operating an MTF or an OTF to make public the information referred to in Article 3(1) based on the market model or the type and size of orders in the cases defined in accordance with paragraph 3. In particular, the competent authorities shall be able to waive the obligationmay choose, in respect of orders that are large in scale compared with normal market size for the share, depositary receipt, exchange-traded fund, certificate or other similar financial instrument or type of share, depositary receipt, exchange-traded fund, certificate or other similar financial instrument in question, not to make public the information referred to in Article 3(1).

2012/05/14
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 2

2. Regulated markets and investment firms and market operators operating an MTF or an OTF shall receive an authorisation from the competent authority before using the exemption referred to in paragraph (1). Before granting a waiver in accordance with paragraph 1, competent authorities shall notify ESMA and other competent authorities of the intended use of each individual waiver request and provide an explanation regarding their functioning. Notification of the intention to grant a waiver shall be made not less than 64 months before the waiver is intended to take effect. Within 32 months following receipt of the notification, ESMA shall issue an opinion to the competent authority in question assessing the compatibility of each waiver with the requirements established in paragraph 1 and specified in the delegated act adopted pursuant to paragraphs 3(b) and (c). After receiving the opinion of ESMA, a college chaired by ESMA and which consists of the competent authorities of all the Member States shall within one month reach a joint opinion. Competent authorities shall not grant a waiver to market operators operating an MTF or an OTF without a positive joint opinion from the college. Where that competent authority grants a waiver and a competent authority of another Member State disagrees with this or disagrees with the effective application of the waiver granted, that competent authority may refer the matter back to ESMA, which may act in accordance with the powers conferred on it under Article 19 of Regulation (EU) No 1095/2010. ESMA shall monitor the application of the waivers and shall submit an annual report to the Commission on how they are applied in practice.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 4 – paragraph 2 a (new)

2 a. When executing orders by waiving the obligation to make public the information referred to in Article 3(1) and by using a reference price from another market, regulated markets and investment firms and market operators operating an MTF or an OTF shall ensure that they get faster access to the reference price than any other market participant executing orders on their venue.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 5 – paragraph 1

1. Regulated markets and investment firms and market operators operating an MTF or an OTF shall make public the price, volume and time of the transactions executed in respect of shares, depositary receipts, exchange-traded funds, certificates and other similar financial instruments admitted to trading or which are traded on an MTF or an OTF. Regulated markets and investment firms and market operators operating an MTF or an OTF shall make details of all such transactions public as close to real-time as is technically possible. As regards electronic trading, the delay before post- trade information is available shall not exceed two times the latency for execution.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 5 – paragraph 2

2. Regulated markets and investment firms and market operators operating an MTF or an OTF shall give effective access, on reasonable commercial terms and on a non- discriminatory basis, to the arrangements they employ for making public the information under paragraph 1 to investment firms which are obliged to publish the details of their transactions in shares, depositary receipts, exchange- traded funds, certificates and other similar financial instruments pursuant to Article 19.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 6 – paragraph 1

1. Competent authorities shall be able to authorise regulated markets to provide for deferred publication of the details of transactions ~~based on their type or size. In particular, the competent authorities may authorise the deferred publication in respect of transactions that are~~that are exceptionally large in scale compared with the normal market size for that share, depositary receipt, exchange-traded fund, certificate or other similar financial instrument or that class of share, depositary receipt, exchange-traded fund, certificate or other similar financial instrument. Regulated markets and investment firms and market operators operating an MTF or an OTF shall obtain the competent authority's prior approval of proposed arrangements for deferred trade- publication, and shall clearly disclose these arrangements to market participants and the public. ESMA shall monitor the application of these arrangements for deferred trade-publication and shall submit an annual report to the Commission on how they are applied in practice.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1 a (new)

Where a competent authority authorises deferred publication and a competent authority of another Member State disagrees with this or disagrees with the effective application of the authorisation granted, that competent authority may refer the matter back to ESMA, which may act in accordance with the powers conferred on it under Article 19 of Regulation (EU) No 1095/2010.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 6 a (new)

Article 6 a Effectiveness of pre-trade transparency in equity instruments Each year, ESMA shall issue to the European Parliament, the Council and the Commission an opinion on the effectiveness of pre-trade transparency taking into account the developments in financial market. In particular ESMA shall calculate the ratio of transactions that were executed without making public the information referred to in Article 3(1). Where ESMA calculates that more than 10% of transactions are executed without making public the information referred to in Article 3(1) or considers that the effectiveness of pre-trade transparency in equity instruments is not fulfilled, ESMA may issue an opinion on reviewing the waiver referred in Article 4(1). Within 3 months after having received the opinion from ESMA the Commission shall be empowered to adopt delegated acts in accordance with Article 94, reviewing the waiver referred in Article 4(1) to ensure the effectiveness of pre- trade transparency.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 7 – paragraph 2

2. Regulated markets and investment firms and market operators operating an MTF or an OTF shall give effective access, on reasonable commercial terms and on a non- discriminatory basis, to the arrangements they employ for making public the information referred to in the first paragraph to investment firms which are obliged to publish their quotes in bonds, structured finance products, emission allowances and derivatives pursuant to Article 17.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 1

1. ~~Competent authorities shall be able to waive the obligation for r~~Regulated markets and investment firms and market operators operating an MTF or an OTF ~~to make public the information referred to in Article 7(1) for specific sets of products based on the market model, the specific characteristics of trading activity in a product and the~~ may for specific sets of products which are considered as illiquid~~ity~~ in the cases defined in accordance with paragraph 4 not to make public the information referred to in Article 7(1).

2012/05/14
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 2

2. Competent authorities shall be able to waive the obligation for regulated markets and investment firms and market operators operating an MTF or an OTF to make public the information referred to in paragraph 1 of Article 7 ~~based on the type and size of orders and method of trading in accordance with paragraph 4. In particular, the competent authorities shall be able to waive the obligation in respect~~ of orders that are large in scale compared with normal market size for the bond, structured finance product, emission allowance or derivative or type of bond, structured finance product, emission allowance or derivative in question.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 3 a (new)

3 a. When executing orders by waiving the obligation to make public the information referred to in Article 3(1) and by using a reference price from an other market, regulated markets and investment firms and market operators operating an MTF or an OTF or any alternative trading arrangement shall ensure that they get faster access to the reference price than any other market participant executing orders on their venue.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 3

3. Regulated markets and investment firms and market operators operating an MTF or an OTF shall obtain an authorisation from the competent authority before using the exemption referred to in paragraph (1) and (2). Before granting a waiver in accordance with paragraphs 1 and 2, competent authorities shall notify ESMA and other competent authorities of the intended use of waivers and provide an explanation regarding their functioning. Notification of the intention to grant a waiver shall be made not less than 64 months before the waiver is intended to take effect. Within 32 months following receipt of the notification, ESMA shall issue an opinion to the competent authority in question assessing the compatibility of each individual waiver request with the requirements established in paragraphs 1 and 2 and specified in the delegated act adopted pursuant to paragraph 4(b). Where that competent authority grants a waiver and a competent authority of another Member State disagrees with this, or with the effective application of the waiver granted that competent authority may refer the matter back to ESMA, which may act in accordance with the powers conferred on it under Article 19 of Regulation (EU) No 1095/2010. ESMA shall monitor the application of the waivers and shall submit an annual report to the Commission on how they are applied in practice.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 3 – subparagraph 1 (new)

After receiving the opinion of ESMA, a college chaired by ESMA and which consists of the competent authorities of all the Member States shall within one month reach a joint opinion. A competent authority shall not grant a waiver to market operators operating an MTF or an OTF without a positive joint opinion from the college.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 8 – paragraph 4 – point b – point iii

(iii) a list of instrument which are considered as illiquid based on the liquidity profile, including the number and type of market participants in a given market and any other relevant criteria for assessing liquidity;

2012/05/14
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 1

1. Regulated markets and investment firms and market operators operating an MTF or an OTF shall make public the price, volume and time of the transactions executed in respect of bonds and structured finance products admitted to trading on a regulated market, an MTF, an OTF or any other trading arrangement or for which a prospectus has been published, emission allowances and for derivatives admitted to trading or which are traded on an MTF or an OTF. Regulated markets and investment firms and market operators operating an MTF or an OTF shall make details of all such transactions public as close to real- time as is technically possible. As regards electronic trading, the delay before post- trade information is available shall not exceed two times the latency for execution.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 9 – paragraph 2

2. Regulated markets and investment firms and market operators operating an MTF or an OTF shall give effective access, on reasonable commercial terms and on a non- discriminatory basis, to the arrangements they employ for making public the information under the first paragraph to investment firms which are obliged to publish the details of their transactions in bonds, structured finance products, emission allowances and derivatives pursuant to Article 20.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 1

Competent authorities shall be able to authorise regulated markets and investment firms and market operators operating an MTF or an OTF to provide for deferred publication of the details of transactions ~~based on their type or size. In particular, the competent authorities may authorise the deferred publication in respect of transactions that are~~that are significantly large in scale compared with the normal market size for that bond, structured finance product, emission allowance or derivative or that class of bond, structured finance product, emission allowance or derivative.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 2 a (new)

Where a competent authority authorises deferred publication and a competent authority of another Member State disagrees with this or disagrees with the effective application of the authorisation granted, that competent authority may refer the matter back to ESMA, which may act in accordance with the powers conferred on it under Article 19 of Regulation (EU) No 1095/2010.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 12 – paragraph 1

1. Regulated markets, MTFs and OTFs shall make the information published in accordance with Articles 3 to 10 available to the public on a reasonable commercial basis and ensure an effective non- discriminatory access to the information. The information shall be made available free of charge 15 minutes after the publication of a transaction.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 14 – paragraph 1 a (new)

1 a. Systematic internalisers shall execute the orders they receive at least within the spread of the most liquid venues listing the financial instruments traded or any most favourable price for their client.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 14 – paragraph 3

3. Systematic internalisers may also execute orders they receive from their professional clients at prices different than their quoted ones without having to comply with the requirements established in paragraph 2, in respect of transactions where execution in several securities is part of one transaction or in respect of orders that are subject to conditions other than the current market price.deleted

2012/05/14
Committee: ECON

Proposal for a regulation
Article 19 – paragraph 1

1. Investment firms which, either on own account or on behalf of clients, conclude transactions in shares, depositary receipts, exchange-traded funds, certificates or other similar financial instruments admitted to trading on a regulated market or which are traded on an MTF or an OTF, shall make public the volume and price of those transactions and the time at which they were concluded. This information shall be made public through an APA as close to real-time as is technically possible. As regards electronic trading, the delay before post-trade information is available shall not exceed two times the latency for execution.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 20 – paragraph 1

1. Investment firms which, either on own account or on behalf of clients, conclude transactions in bonds and structured finance products admitted to trading on a regulated market or for which a prospectus has been published, emission allowances and derivatives which are clearing-eligible or are reported to trade repositories in accordance with Article [6] of Regulation [EMIR] or are admitted to trading on a regulated market or are traded on an MTF or an OTF shall make public the volume and price of those transactions and the time at which they were concluded. This information shall be made public through an APA as close to real-time as is technically possible. As regards electronic trading, availability of post-trade information shall not exceed two times the latency for execution.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 1

1. Investment firms which execute transactions in financial instruments shall report details of such transactions to the competent authority as quickly as possible, and no later than the close of the following working day. The competent authorities shall, in accordance with Article 89 of Directive [new MiFID], establish the necessary arrangements in order to ensure that ESMA and the competent authority of the most relevant market in terms of liquidity for those financial instruments also receives this information.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 2

2. The obligation laid down in paragraph 1 shall not apply to financial instruments which are not admitted to trading or traded on an MTF or an OTF, to financial instruments whose value does not depend on that of a financial instrument admitted to trading or traded on an MTF or an OTF, nor to financial instruments which do not or are not likely to have an effect on a financial instrument admitted to trading or traded on an MTF or an OTF.deleted

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 3

3. The reports shall, in particular, include details of the type, the class of assets, the names and numbers of the instruments bought or sold, the quantity, the dates and times of execution, the transaction prices, a designation to identify the clients on whose behalf the investment firm has executed that transaction, a designation to identify the persons and the computer algorithms within the investment firm responsible for the investment decision and the execution of the transaction, and means of identifying the investment firms concerned. Additionally, for transactions related to commodity derivatives, the report shall indicate whether such transactions qualify as bona-fide hedging transaction. For transactions not carried out on a regulated market, MTF or OTF, the reports shall also include a designation identifying the types of transactions in accordance with the measures to be adopted pursuant to Article 19(3)(a) and Article 20(3)(a).

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 4

4. Investment firms which transmit orders shall include in the transmission of that order all the details required for the purposes of paragraphs 1 and 3. Instead of including a designation to identify the end clients on whose behalf the investment firm has transmitted that order or a designation to identify the persons and the computer algorithms within the investment firm responsible for the investment decision and the execution of the transaction, an investment firm may also choose to report the transmitted order in accordance with the requirements under paragraph 1.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 5 a (new)

5 a. In reporting the designation to identify the clients as required under paragraphs 3 and 4, investment firms shall use: (i) a Legal Entity Identifier established to identify clients who are a legal entity, in the form of a 20 digit alphanumeric code; (ii) an identifier attributed in accordance with the regulatory technical standards developed by ESMA for natural persons and entities not subject to the attribution of a Legal Entity Identifier. To that end, each Member State shall define an identifier allowing identification of its nationals and of every legal entity established on its territory. It shall be determined by the Member State at least at its national level so that each national or legal entity located in that Member State shall have a unique identifier. Each Member State shall also be in a position to transmit every national identifier in the transaction reports to other Member States pursuant to paragraphs 1 and 7, without prejudice to the applicable provisions [Directive 95/46/EC and revising texts] on the protection of individuals with regard to the processing of personal data and on the free movement of such data. Each Member State shall ensure that these identifiers allow other Member States to promptly obtain the identity of the client, either through the transmission of the client identity (name) itself, or through a mechanism providing for the client's identity (name) without requiring the submission of an ad hoc request to the relevant investment firm.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 6

6. The reports shall be made to the competent authority either by the investment firm itself, an ARM acting on its behalf or by the regulated market or MTF or OTF through whose systems the transaction was completed. Trade- matching or reporting systems, including trade repositories registered or recognised in accordance with Title VI of Regulation [ ] (EMIR), may be approved by the competent authority as an ARM. In cases where transactions are reported directly to the competent authority by a regulated market, an MTF, an OTF or an ARM, the obligation on the investment firm laid down in paragraph 1 may be waived. In cases where transactions have been reported to a trade repository in accordance with article [7] of Regulation [ ] (EMIR) and where these reports contain the details required under paragraphs 1 and 3, including the relevant regulatory technical standards regarding the form and content of reports, and are systematically transmitted to the relevant competent authority within the time limit set by paragraph 1, the obligation on the investment firm laid down in paragraph 1 shall be considered to have been complied with.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 8 – subparagraph 1 – point c a (new)

(c a) the criteria defining bona-fide hedging activities related to the commodity, and the related evidence required from investment firms to support their claim that a transaction meets the criteria defined.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 8 – subparagraph 1 – point c b (new)

(c b) the conditions upon which national identifiers are developed, attributed and maintained, by Member States, and the conditions under which these national identifiers are used by investment firms so as to provide, pursuant to paragraphs 3 to 5, for the designation to identify the clients in the transaction reports they are required to establish pursuant to paragraph 1;

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 – paragraph 8 – subparagraph 1 – point c c (new)

(c c) the arrangements Member States have to put in place to ensure that any Member States have an effective access to the identity (name) of investment firms' clients through a system aimed at decoding national client identification codes without requiring the submission of ad hoc requests to the relevant investment firm.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 23 a (new)

Article 23 a Obligation to supply instrument reference data 1. With regard to instruments admitted to trading on regulated markets, or traded on multilateral trading facilities [or organized trading facilities], these trading venues shall systematically supply ESMA and competent authorities with identifying instrument reference data for the purpose of transaction reporting under Article 21. This reference data for a given instrument shall be submitted to ESMA and competent authorities before trading commences in that particular instrument. With regard to other instruments, ESMA and competent authorities shall ensure that trade associations and other similar bodies that collect and distribute instrument reference data, supply them with relevant reference data. 2. The obligation laid down in paragraph 1 only applies to the financial instruments specified in Article 23(2). It therefore shall not apply to any other instrument. 3. The instrument reference data referred to in paragraph 1 shall be updated whenever relevant so as to ensure its appropriateness. 4. In order to allow competent authorities to monitor, pursuant to Article 21, the activities of investment firms to ensure that they act honestly, fairly and professionally and in a manner which promotes the integrity of the market, ESMA and the competent authorities shall establish the necessary arrangements in order to ensure that: (a) ESMA and the competent authorities effectively receive the instrument reference data pursuant to paragraph 1; (b) the quality of the data so received is appropriate for the purpose of transaction reporting under Article 21; (c) the instrument reference data received pursuant to paragraph 1 is efficiently exchanged between the relevant competent authority(ies). 5. ESMA shall develop draft regulatory technical standards to determine: (a) data standards and formats for the instrument reference data in accordance with paragraph 1, including the methods and arrangements for supplying the data and any update thereto to ESMA and competent authorities, and the form and content of such data; (b) the measures and conditions that are necessary in relation to the arrangements to be made by ESMA and the competent authorities pursuant to paragraph 4. ESMA shall submit those draft regulatory technical standards to the Commission by ...*.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."

2012/05/14
Committee: ECON

Proposal for a regulation
Article 24 – paragraph 1 – point c

(c) OTFs where the derivative is not traded on a regulated market or an MTF; or

2012/05/14
Committee: ECON

Proposal for a regulation
Article 24 – paragraph 1 a (new)

1 a. Financial counterparties as defined in Article 2(6) and non financial counterparties that do not meet the conditions referred to in Article [5(1b)] of Regulation [ ] EMIR shall conclude transactions which are not intragroup transactions as defined in Article [2a] of Regulation [ ] (EMIR) with other financial counterparties as defined in Article 2(6) or non financial counterparties that meet the conditions referred to in Article [5(1b)] of Regulation [ ] (EMIR) in derivatives that are admitted to be traded in the trading venues referred to in paragraph 1 only in such trading venues. ESMA shall regularly monitor the activity in derivatives which have not been declared subject to the trading obligation in order to identify cases where a particular class of contracts may pose systemic risk and to prevent regulatory arbitrage between derivative transactions submitted and non submitted to the trading obligation.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 24 – paragraph 4 a (new)

4 a. ESMA shall define targets by asset class for increased legal, process and product standardisation, as well as targets by asset class for the proportion of trading of OTC derivatives taking place on regulated venues, and make arrangements to monitor achievements of these targets.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 28 a (new)

Article 28 a Clearing obligation for equities and bonds traded on regulated markets, MTF and OTF The operator of a regulated market, an MTF, or an OTF shall ensure that all transactions in equities and bonds that are concluded on a regulated market, an MTF and OTF are cleared by a CCP when a CCP accepts to clear that financial instrument.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 30 – paragraph 1 – subparagraph 1 – introductory part

Where the value of any financial instrument is calculated by reference to a benchmark, a person with proprietary rights to the benchmark shall ensure that CCPs and trading venues are permitted, for the purposes of ~~trading and~~providing client services in relation to the operation of a trading venue or clearing, non- discriminatory access to:

2012/05/14
Committee: ECON

Proposal for a regulation
Article 30 – paragraph 1 – subparagraph 1 – point b

(b) licences for the use of the information referred to in paragraph 1(a) adequate for the purposes of providing client services in relation to the operation of a trading venue or clearing.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 30 – paragraph 3 – point a a (new)

(aa) the uses to be covered by the licences referred to in paragraph 1(b);

2012/05/14
Committee: ECON

Proposal for a regulation
Article 31 – title

ESMA ~~powers to temporarily intervene~~intervention powers

2012/05/14
Committee: ECON

Proposal for a regulation
Article 31 – paragraph 2 – point a

(a) the proposed action addresses a threat to investor protection or to the orderly functioning, economic utility and integrity of financial markets or to the stability of the whole or part of the financial system in the Union;

2012/05/14
Committee: ECON

Proposal for a regulation
Article 34 – paragraph 2

2. After receiving notification of any measure under Article 83(5) of Directive [new MiFID] ESMA shall record the measure and the reasons thereof. In relation to measures pursuant to Article 72(1) subparagraph (f) and (g) of Directive [new MiFID], it shall maintain and publish on its website a database with summaries of the measures in force including details on the person or class of persons concerned, the applicable financial instruments, any quantitative and qualitative measures or thresholds such as the maximum number of contracts and the market and notional values of gross and open positions persons can enter into before a limit is reached, any exemptions thereto, and the reasons thereof.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 1 – introductory part

1. In accordance with Article 9(5) of Regulation (EU) No 1095/2010, ESMA shall, where allny of the conditions in paragraph 2 are satisfied, take one or more of the following measures:

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 1 – point b

(b) after analysing the information obtained, require any such person or class of investors to take steps to reduce the size of the position or exposure;

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 1 – point c

(c) limit the ability of a person from entering into a commodity derivative or prohibit new classes of contracts.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – introductory part

Without prejudice to the measures foreseen in article 59 of the MiFID directive ESMA shall only take a decision under paragraph 1 if ~~all~~one or more of the following conditions are fulfilled:

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point a

(a) the measures listed in points (a) to (c) of paragraph 1 address a threat to the efficient and orderly functioning and integrity of financial markets including in relation to delivery arrangements for physical commodities by leading to excessive speculation and market manipulation, increased volatility or distortion of price discovery, or the stability of the whole or part of the financial system in the Union or distorts risk management functions of commodity markets;

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 3 – point a

(a) ~~does significantly~~ addresses the threat to the efficient and orderly functioning and integrity of financial markets or of delivery arrangements for physical commodities, or the stability of the whole or part of the financial system in the Union or ~~significantly~~ improve the ability of competent authorities to monitor the threat;

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 3 – point c

(c) does not have a detrimental effect on the efficiency of financial markets, including reducing liquidity required by bona fide hedging transactions in those markets or creating uncertainty for market participants, that is disproportionate to the benefits of the measure.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 6

6. ESMA shall publish on its website notice of any decision to impose or renew any measure referred to in subparagraph (c) of paragraph 1. The notice shall include details on the person or class of persons concerned, the applicable financial instruments, the relevant quantitative and qualitative measures such as the maximum number of contracts and the value of the gross or open position the person or class of persons in question can enter into, and the reasons thereof.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 4

4. Before deciding to undertake or renew any measure referred to in paragraph 1, ESMA shall notify relevant competent authorities of the measure it proposes. In case of a request under subparagraph (a) or (b) of paragraph 1 the notification shall include the identity of the person or persons to whom it was addressed and the details and reasons thereof. In case of a measure under subparagraph (c) of paragraph 1 the notification shall include details on the person or class of persons concerned, the applicable financial instruments, the relevant quantitative and qualitative measures such as the maximum number of contracts and the value of the gross or open position the person or class of persons in question can enter into, and the reasons thereof.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 10

10. ~~The Commission shall adopt by means of delegated acts in accordance with Article 41 measures specifying~~ESMA shall submit draft regulatory technical standards specifying the measures, criteria and factors t~~o be~~hat it shall taken into account ~~by ESMA~~ in determining when a threat to the orderly functioning and integrity of financial markets including in relation to delivery arrangements for physical commodities, or the stability of the whole or part of the financial system in the Unionthe circumstances referred to in paragraph 2(a) arise.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 10 – subparagraph 1 a (new)

ESMA shall submit those draft regulatory technical standards to the Commission by [31 December 2012]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in paragraph 10 in accordance with Articles 10 to 14 of Regulation (EU) N° 1095/2010.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 10 a (new)

10a. For the purpose of effectively carrying its duties in relation to commodities markets and coordinating supervisory activities between the designated national competent authorities with responsibility for those markets, ESMA shall establish a specific commodities division.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 35 – paragraph 10 b (new)

10b. ESMA shall develop in close coordination with the ESRB and other relevant sectoral supervisors from the Union and third countries draft regulatory technical standards specifying a set of relevant indicators and thresholds required for the monitoring of the characteristics of underlying commodity markets as well as the details of the granular and aggregate information to be provided by market participants, Regulated markets, MTF, OTFs, OTC dealers and trade repositories authorized under Regulation [EMIR] to the relevant competent authorities, ESMA and the ESRB. These indicators shall in particular be used by competent authorities and the ESMA division on commodities to proceed to a regular and granular in-depth review of patterns of production, consumption, intermediation, transportation, estimated and official levels of inventories including prepaid contracts, spared capacities, long- term supply and demand trends of underlying commodity markets as well as market volatility and correlation patterns with other assets and classes of assets. ESMA shall submit drafts for those regulatory technical standards to the Commission by [31 December 2012]. Power is delegated to the Commission to adopt regulatory technical standards referred to in paragraph 2 in accordance with Articles 10 to 14 of Regulation (EU) N° 1095/2010.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 37 – paragraph 1 – subparagraph 2 – point e a (new)

(ea) the third country applies reciprocal access conditions for EU-based investment firm and a mutual recognition regime has been implemented in that third country.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 45 – paragraph 2

~~2. The Commission may adopt by means of~~ delegated acts in accordance with Article 41 measures specifying an extension to the period of application of paragraph 2, taking into account the equivalence decisions already adopted by the Commission in accordance with Article 37 and expected developments in the regulatory and supervisory framework of third countries.

2012/05/14
Committee: ECON

Proposal for a regulation
Article 46 – paragraph 2

This Regulation shall apply from [124 months after the entry into force of this Regulation], except for Articles 2(3), 4(3), 6(2), 8(4), 10(2), 11(2), 12(2), 13(7), 14(5), 14(6), 16(3), 18(2,), 18(3), 19(3), 20(3), 23(8), 24(5), 26, 28(6), 29(6), 30(3), 31, 32, 33, 34 and 35, which shall apply immediately following the entry into force of this Regulation.

2012/05/14
Committee: ECON