Activities of Kay SWINBURNE related to 2010/2075(INI)
Plenary speeches (1)
Regulation of trading in financial instruments - ‘dark pools’, etc. (short presentation)
Reports (1)
REPORT Report on regulation of trading in financial instruments - dark pools etc. PDF (195 KB) DOC (111 KB)
Amendments (32)
Amendment 1 #
Motion for a resolution
Citation 13 a (new)
Citation 13 a (new)
- having regard to the CESR technical advice to the European Commission in the context of the MiFID review and responses to the European Commission request for additional information (Ref: CESR/10-802, Ref: CESR/10-799, Ref: CESR/10-808, Ref: CESR/10-859, Ref: CESR/10-860)
Amendment 17 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
Ba. whereas market participants should be encouraged to transact on organised trading venues instead of OTC:
Amendment 37 #
Motion for a resolution
Recital E
Recital E
E. whereas broker crossing networks (BCNs), provided by Investment Firms as bilateral and discretionary facilities for transactions carried out on behalf of clients on an OTC basis, are different services to regulated markets (RMs) and multilateral trading facilities (MTFs) in so far as they are closed systems and a technological extension of the traditional, discretionary broker-client relationship,
Amendment 46 #
Motion for a resolution
Recital G
Recital G
G. whereas the risks associated with electronic order systems and the significant share of trading volumes attributable to HFT strategies, estimated at 30-50 %70 % in the US, were manifest in the US "flash crash" on 6 May 2010 when HFT liquidity providers exited the market,
Amendment 47 #
Motion for a resolution
Recital G a (new)
Recital G a (new)
Ga. whereas HFT strategies are a relatively new phenomenon in Europe and are now estimated to make up 35% of the market by volume;
Amendment 53 #
Motion for a resolution
Recital H
Recital H
H. whereas greater transparency via pre- and post-trade reporting of trading activity across all asset classes would provides improved early warning of the build-up and scale of developing problems,
Amendment 75 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Asks for ESMA to conduct an investigation into the functioning of the systematic internaliser (SI) regime and the bringing forward of improvements to the way in which this category is regulated to increase its use as a subset of OTCif it is still considered a useful option for investors;
Amendment 76 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Asks for ESMA to conduct an investigation into the functioning of the systematic internaliser (SI) regime and the bringing forward of improvements to the way in which this category is regulated to increase its use as a subset of OTC;
Amendment 79 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls for ESMA to conduct a review of whether order-by- order best execution needs to be better served by regulation in relation to the availability of data, both post-trade and in relation to execution quality, and in relation to market technology, such as order routers and venue connections;
Amendment 86 #
Motion for a resolution
Paragraph 6 – introductory part
Paragraph 6 – introductory part
6. Calls for the Commission to introduction ofe new provisions in MIFID for BCNs including requirements to submit to the competent authorities:
Amendment 94 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Calls for an investigation into a suitable volume or traded value threshold above which BCNs would be required to convert to an MTF;
Amendment 95 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Asks that the new provisions in MiFID for BCNs are conditional upon their being closed systems, unable to interact with other BCNs;
Amendment 101 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Seeks a sectoral consultation by ESMA which will inform the Commission on whether market makers should be allowed to interact with dark-pool orders within a BCN, or whether this should be disallowed and remain a venue for buy side customer orders to cross;
Amendment 106 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Suggests that a minimum order size for dark-pool transactions, whether on an organised trading venue or BCN, may be warranted and asks for ESMA to conduct an investigation into the merits of this for maintaining adequate flow of trade through the lit venues in the interests of price discovery;
Amendment 107 #
Motion for a resolution
Paragraph 10 – introductory part
Paragraph 10 – introductory part
10. Calls for the Commission to conduct a review of the existing MiFID pre-trade transparency waivers to:
Amendment 122 #
Motion for a resolution
Paragraph 10 – point c a (new)
Paragraph 10 – point c a (new)
(ca) consider the extent and use of the negotiated waiver and its potential effect on price formation;
Amendment 131 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Calls on the Commission to establish a working group to overcome the barriers to a European consolidated tape and establish a privately run system that does not place any further financial burdens on taxpayers to a Commission-defined deadline; if no market solution is forthcoming further regulatory measures must be considered;
Amendment 133 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Calls upon the CESRESMA to draw up common reporting standards and formats for the reporting of all post-trade data, both on organised trading venues and OTC, to aid in data consolidation;
Amendment 135 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Calls upon the CESRESMA to draw up common reporting standards and formats for the reporting of post-trade data to aid in data consolidation;
Amendment 144 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Insists that post-"flash crash", all trading platforms stress-test their technology and surveillance systems to ensure that they could successfully deal with the activity associated with HFT and algorithmic trading in extreme circumstancesmust be able to demonstrate to national supervisors that their technology and surveillance systems are able to withstand the kind of barrage of orders experienced on May 6th so as to ensure that they could successfully deal with the activity associated with HFT and algorithmic trading in extreme circumstances and show that they are able to re-create their order books by end of day so causes of unusual market activity can be pin-pointed and any suspected market abuse can be identified;
Amendment 150 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Calls foron ESMA to conduct an examination of the costs and benefits of HFT on markets and its impact upon other market users, particularly institutional investors, to determine whether the significant market flow generated automatically is providing real liquidity to the market and what affect this has on overall price discovery;
Amendment 152 #
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17a. Calls for the practice of "layering" or "quote stuffing" to be explicitly defined as market abuse;
Amendment 159 #
Motion for a resolution
Paragraph 20 – introductory part
Paragraph 20 – introductory part
20. Calls on regulators to monitor and regulate the provision of sponsored access and upon the Commission to consider additional measures including:
Amendment 166 #
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
22a. Calls upon the Commission to consider whether introducing a minimum resting period for all orders would be technologically possible and beneficial to the market;
Amendment 170 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Calls for an investigation by ESMA into fee structures to ensure that execution fees, ancillary fees and any other related incentives are transparent, non- discriminatory and consistent with reliable price formation and are designed and implemented so as not to encourage trading for improper purposes;
Amendment 173 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Suggests ESMA conduct a study of the maker/taker fee model to determine whether any recipient of the more favourable "maker" fee structure should also be subject to formal market maker obligations and supervision and whether firms operating HFT strategies should be obliged to register as formal market makers, taking on all of the obligations that this implies;
Amendment 174 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Suggests ESMA conduct a study of the maker/taker fee model to determine whether any recipient of the more favourable "maker" fee structure should also be subject to formal market maker obligations and supervision;
Amendment 176 #
Motion for a resolution
Paragraph 25
Paragraph 25
25. Asks that European trading venues have robust volatility interrupts and circuit breakers which operate simultaneously across all trading venues, coordinated by technical standards developed by ESMA, to prevent a US- style "flash crash" event;
Amendment 181 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Requests the consideration by the Commission and ESMA of introducing a transparency requirement, pre and post trade, on all non-equity financial instruments subject to significant secondary trading, including government and corporate bond markets, to be applied in an asset-specific manner manner that differentiates across asset classes also taking into account differing levels of liquidity and complexity of instruments within asset classes;
Amendment 182 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Requests the consideration by the Commission ad ESMA of introducing a transparency requirement, pre and post trade, on all non-equity financial instruments subject to significant secondary trading, including government and corporate bond markets, to be applied in an asset-specific manner;
Amendment 183 #
Motion for a resolution
Paragraph 29 a (new)
Paragraph 29 a (new)
29a. Taking into account the issues that have been experienced in relation to data quality and consolidation of post-trade data for European equities, the Commission should ensure that post-trade data for non-equity products is provided in a form which is readily consolidated;
Amendment 184 #
Motion for a resolution
Paragraph 30
Paragraph 30
30. Supports the Commission's intention to include derivative instruments within the scope of MiFIDapply a wider range of MiFID provisions to derivative instruments as the trading of such products transitions increasingly to formal trading venues and are subject to increasing standardisation and central clearing requirements;