[ParlTrack]

Proposal for a regulation
Recital 4

(4) To date, however, no supervised entity has applied for authorisation to act as a CTP. ESMA has identified three main obstacles that have prevented supervised entities to apply for registration as a CTP33 . First, a lack of clarity as to how the CTP is to procure market data from the various execution venues or from the data reporting service providers concerned. Second, insufficient quality in terms of harmonisation of the data reported by those execution venues to allow for a cost- efficient consolidation. Third, a lack of commercial incentives to apply for authorisation as a CTP. It is therefore necessary to remove those obstacles. Such removal requires, first, that all trading venues and systematic internalisers (‘SIs’) provide CTPs with market data (provision rule). It secondly requires an improvement of the data quality by harmonising the data reports that trading venues and SIs should submit to the CTP. Finally, it requires that the data collected by the CTP contain at minimum as close to real time as it is technically possible pre- and post trade information for shares, and as close to real time as it is technically possible post trade information for bonds. __________________ 33 ESMA MiFID II/MiFIR Review Report No. 1 on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments.

2022/10/20
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Recital 19 a (new)

(19 a) Market participants and ESMA have shown that the existing reporting regime can create uncertainty about who should report transactions and can lead to double reporting. The problem is particularly acute when investment firms trading with each other do not know whether their counterparty is a Systematic Internaliser for the traded financial instrument, and as such should report transactions to the approved publication arrangement. In addition, the link between the reporting obligation and the status of Systematic Internaliser has led to an inflated number of Systematic Internalisers in the Union, distorting the picture of market participants. The link between the Systematic Internaliser status and the post-trade transparency and reporting requirements should be removed, and instead, the seller shall be responsible for publishing the trade through an APA. That would eliminate uncertainty about who should report a transaction and reduce the current complex regulatory burden on investment firms, particularly smaller ones. Such an approach would also have the advantage of creating a level playing field across all investment firms as investment firms would select their counterparties based on execution quality rather than selecting only those firms that qualify or have opted in as Systematic Internaliser, and Systematic internalisers will act purely as liquidity providers, providing further clarity to the overall structure of the market.

2022/10/20
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Recital 21

(21) According to data presented in the impact assessment accompanying the proposal for this Regulation, the expected revenue generation for the consolidated tape will vary depending on the precise features of the tape. The expected revenue of the CTP should significantly exceed the cost of its production and therefore help to build a solid revenue participation scheme whereby the CTP and the market data contributors share aligned commercial interests. This principle should not prevent CTPs from making a necessary margin to maintain a viable business model and from using the core market data to offer further analytics or other services aimed to increase the revenue pool. The market data contributor should only receive a remuneration based on the costs it has incurred in generating the data and providing it to the CTP. Smaller regulated markets, independent and not part of any bigger exchange group, should benefit from a more important remuneration in order to incentivize their contribution to the CTP. Retail investors should have access to the consolidated tape, either free of charge or for a nominal annual fee, and the tape provider should ensure that the information provided to retail investors is easily accessible and displayed in a user-friendly and understandable format.

2022/10/20
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Recital 32

(32) Financial intermediaries should strive to achieve the best possible price and the highest possible likelihood of execution for trades that they execute on behalf of their clients. To that end, financial intermediaries should select the trading venue or counterparty for executing their client trades solely on the basis of achieving best execution for their clients. It should be incompatible with that principle of best execution that a financial intermediary receives a payment from a trading counterpart in exchange for ensuring the execution of client trades. Investment firms should be therefore be prohibited from receiving such payment. That prohibition should apply to instruments where the price formation process is order driven and should concern any type of intermediary.

2022/10/20
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 9 b (new)

Regulation (EU) No 600/2014
Article 20 – paragraph 2a (new), paragraph 3 point c and paragraph 3 a (new)

~~((https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0600-20220101))~~(9 a) Article 20 is amended as follows: "(a) the following paragraph is inserted: ‘2a. Each individual transaction shall be made public once through a single APA;’; (b) in paragraph 3, point (c) is deleted; and (c) the following paragraph is inserted: 3a. Only the entity that sells the financial instrument concerned shall make the transaction public through an APA.'; " Or. en

2022/10/20
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 9 b (new)

Regulation (EU) No 600/2014
Article 21 – paragraph 1

(9 b) In Article 21, paragraph 1 is replace by the following: ‘1. Investment firms which, either on own account or on behalf of clients, conclude transactions in bonds, structured finance products, and emission allowances ~~and derivatives~~ traded on a trading venue, or derivatives subject to the clearing obligation set out in Article 4 of Regulation (EU) No 648/2012, shall make public the volume and price of those transactions and the time at which they were concluded. That information shall be made public through an APA. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014R0600-~~’; Or. en 20220101&from=EN)

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 9 c (new)

Regulation (EU) No 600/2014
Article 21 – paragraph 4

4. Competent authorities shall be able to authorise investment firms to provide for deferred publication, or may request the publication of limited details of a transaction or details of several transactions in an aggregated form, or a combination thereof, during the time period of the deferral or may allow the omission of the publication of the volume for individual transactions during an extended time period of deferral, or in the case of non-equity financial instruments that are not sovereign debt, may allow theIn Article 21, paragraph 4 is replaced by the following: ‘4. Investment firms may provide for deferred publication of ~~several~~ transactions in an aggregated form during an extended time period of deferral, or in the case of sovereign debt instruments may allow the publication of several transactions in an aggregated form for an indefinite period of time,referred to in paragraph 1 of this Article and may temporarily suspend the obligations referred to in that paragraph 1 on the same conditions as laid down in Article 11. Where the measures adopted pursuant to Article 11 provide for deferred publication and publication of limited details or details in an aggregated form, or a combination thereof, or for omission of the publication of the volume for certain categories of transactions in bonds, structured finance products, emission allowances and derivatives traded on a trading venue, that possibility shall also apply to those transactions when undertaken outside trading venues. ’; Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014R0600- 20220101&from=EN)

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 9 c (new)

Regulation (EU) No 600/2014
Article 21 – paragraph 5 – introductory part

In Article 21, paragraph 5, introductory part is replaced by the following: ‘5. ESMA shall develop draft regulatory technical standards in such a way as to enable the publication of information required under Article 6427h of ~~Directive 2014/65/EU~~this Regulation to specify the following: ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014R0600-~~’; Or. en 20220101&from=EN)

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 9 c (new)

Regulation (EU) No 600/2014
Article 21 – paragraph 5 – introductory part

~~(https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014R0600-~~ (d) in paragraph 5 point c is deleted.’; Or. en 20220101&from=EN)

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 9 c (new)

Regulation (EU) No 600/2014
Article 21 – paragraph 5 a (new)

In Article 21, new paragraph 5a is inserted: ‘5a. Only the entity that sells the financial instrument concerned shall make the transaction public through an APA.’ Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02014R0600- 20220101&from=EN)

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 1 a (new)

1 a. Regulated markets whose average daily trading volume of shares exceeds 1% of the average trading volume of the Union and which are not part of a group comprising or having close links with a regulated market that would be above the 1% threshold of the total value of equity value traded within the EU shall not be required to provide market data to the CTP if: (i) the regulated market or MTF accounts for equal to or more than 70% of the average annual traded volume of shares that were first admitted to trading on the regulated market; (ii) the average daily trading volume of shares first admitted on that regulated market on MTFs and systematic internalisers is 20% or less of the average daily trading volume of those shares. ESMA shall publish on its website a list of regulated markets exempted from providing market data to the CTP and shall update that list regularly.

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 16

Regulation (EU) No 600/2014
Article 27h – paragraph 1 – subparagraph 1 – point c

(c) in the case of market data concerning shares and ETFs, redistribute part of their revenues for the purposes of covering the cost related to mandatory contribution and of ensuring a fair level of participation for regulated markets, and in particular smaller regulated markets, in the revenue generated by the consolidated tape, in accordance with Article 27da(4). The level of revenue redistributed to each market data contributor shall be proportional to the contribution to the price formation process of the data provided to the CTP by that market data contributor. Smaller regulated markets, independent and not part of any bigger exchange group, should benefit from a more important remuneration in order to incentivize their contribution to the CTP. Revenue generated from pre-trade and post-trade consolidated data streams shall be redistributed exclusively to the contributors to a given data stream;

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 16

Regulation (EU) 600/2014
Article 27h- paragraph 1 - second subparagrah

For the purpose of establishing the participation in point (c), the revenue of the CTP shall be allocated among regulated markets according to a formula that reflects the proportion of pre-trade transparent liquidity in shares displayed by a regulated market relative to the average daily turnover in these shares in the UnionESMA shall develop draft regulatory technical standards to specify the features of the revenue sharing scheme aimed at remunerating market data providers, such as the maximum amount per user of the CT that would contribute to the revenue sharing mechanism put in place by the CTP, and the modalities of the allocation of revenues. In particular, ESMA should consider the allocation revenues in the following order: (i) a fixed reward per contributor, reflecting fixed costs linked to their contribution (e.g. connection costs); (ii) revenue sharing towards smaller exchanges contributing to the CT; (iii) revenue sharing based on an allocation key based on the volume and quality of data contributed. ESMA shall submit those draft regulatory technical standards to the Commission by [OP insert a date 6 months as of entry into force].

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 18 – introductory part

Regulation (EU) 600/2014
Article 28 – paragraph 1

(18) in Article 28~~(1), paragraph 1, the introductory wording is replaced by the~~ is modified as follow~~ing~~s:

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 18

Regulation (EU) 600/2014
Article 28 – paragraph 1

1a. Financial counterparties that meet the conditions set out in Article 4a(1), second subparagraph, of Regulation (EU) No 648/2012, and non-financial counterparties that meet the conditions set out in Article 10(1), second subparagraph, of that Regulation, shall conclude transactions, which are neither intragroup transactions as defined in Article 3 of that Regulation nor transactions covered by the transitional provisions laid down in Article 89 of that Regula paragraph 1, the introductory part is replaced by the following: '1. Financial counterparties and non- financial counterparties as defined in Regulation (EU) No 648/2012 shall conclude transaction,s with other such financial counterparties or other such non- financial counterparties in derivatives pertaining to a class of derivatives that has been declared subject to the trading obligation in accordance with the procedure set out in Article 32 ~~of this Regulation~~ and listed in the register referred to in Article 34 ~~of this Regulation~~ only on:;'

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 18 a (new)

Regulation (EU) 600/2014
Article 28 – paragraph 2 a (new)

(b) the following paragraph 2a is inserted: '2a. Derivative transactions that are exempt from or otherwise not subject to the clearing obligation under Article 4 of Regulation (EU) No 648/2012 shall not be subject to the trading obligation.'

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 20

Regulation (EU) 600/2014
Article 32a – paragraph 1 – introductory part

1. At the request of the competent authority of a Member State, the Commission may suspend the derivatives trading obligation with respect to certain fin~~vestment firm~~ancial counterparties in accordance with the procedure referred to in Article 51 and after having consulted ESMA. The competent authority shall indicate why it considers that the conditions for a suspension are met. In particular, the competent authority shall demonstrate that an investment firm within its jurisdiction:

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 20

Regulation (EU) 600/2014
Article 32a – paragraph 1 a (new)

1 a. At the request of the competent authority of a Member State, the Commission may suspend the derivatives trading obligation with respect to certain financial counterparties in accordance with the procedure referred to in Article 51 and after having consulted ESMA. The competent authority shall indicate why it considers that the conditions for a suspension are met. In particular, the competent authority shall demonstrate that the financial counterparty within its jurisdiction: (a) regularly trades derivatives subject to the derivatives trading obligation on a specific market segment (‘dealer-to dealer’); (b) with a non-EEA market maker which has no active membership on an EU trading venue that offers trading in the derivative subject to the trading obligation; (c) clears these derivatives in a central counterparty authorised in accordance with Regulation (EU) 2012/648.

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 20

Regulation (EU) 600/2014
Article 32a – paragraph 2

2. When assessing whether to suspend the trading obligation in accordance with paragraph 1 and 1a, the Commission shall consider whether to suspend it for specific markets only, and shall take into account whether such suspension of the trading obligation would have a distortive effect on the clearing obligation laid down in Article 4(1) of Regulation (EU) No 648/2012.

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 20

Regulation (EU) 600/2014
Article 32a – paragraph 3

3. The implementing act referred to in paragraphs 1 and 1a shall be accompanied by the evidence presented by the competent authority requesting the suspension.

2022/10/21
Committee: ECON

Danuta Maria HÜBNER

Proposal for a regulation
Article 1 – paragraph 26

Investment firms acting on behalf of clients shall not receive any fee or commission or non-monetary benefits from any third party for forwarding client orders to such third party for their execution.;-1. Investment firms executing orders on behalf of a retail client shall take all necessary steps to obtain the best possible price for their clients, accounting for all expenses directly related to the execution of the order, such as execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order. ESMA shall develop draft regulatory technical standards to specify the different elements that may be taken into account for determining the best possible result for the retail clients of investment firms, and shall regularly update them to account for developments in market practices. ESMA shall submit those draft regulatory technical standards to the Commission by... [six months after the date of entry into force of this amending Regulation]. 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. 1. Investment firms acting on behalf of clients shall not receive any fee or commission or non-monetary benefits from any third party for forwarding client orders to any third party for their execution. 1a. The Commission shall adopt a delegated act in accordance with Article50 by ... [12 months after the date of entry into force of this amending Regulation] to specify the market practices falling under the provision of the first subparagraph of this Article. The Commission shall regularly update that delegated act to account for the development of new market practices.

2022/10/21
Committee: ECON

Danuta Maria HÜBNER, Johan VAN OVERTVELDT, Frances FITZGERALD

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

Regulation (EU) 2016/1011
Article 2 - paragraph 2 - point d

(29 a) in Regulation (EU) 2016/1011, Article 2, paragraph 2, point d, is amended as follows: "(d) the provision of a single reference price for any financial instrument listed in Section C of Annex I to Directive 2014/65/EU ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02016R1011-~~except those financial instruments in respect of which both of the following conditions apply: (i) the financial instrument is a derivative contract relating to energy; and (ii) the total notional value of financial instruments or contracts referencing the single reference price exceeds EUR 100million. (Changes to Benchmark Regulation - formatting may need to be adjusted.) Or. en 20220101&from=EN)

2022/10/21
Committee: ECON

Activities of Danuta Maria HÜBNER related to 2021/0385(COD)

Reports (1)

Amendments (22)

ParlTrack - 2011-2024