Activities of Kay SWINBURNE related to 2011/0298(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on markets in financial instruments repealing Directive 2004/39/EC of the European Parliament and of the Council (recast) PDF (1 MB) DOC (1 MB)
Amendments (124)
Amendment 230 #
Proposal for a directive
Recital 12 a (new)
Recital 12 a (new)
(12 a) Within the definition of the MTF and the OTF, market participants should be able to exercise choice with respect to which category of market participant their orders interact with as long as this is done in an open and transparent manner and does not involve discrimination by the platform operator. As further identifiers and trade flags are introduced, trading venues should be able to set different categories of membership to facilitate this as an additional, optional service to users as appropriate.
Amendment 236 #
Proposal for a directive
Recital 13
Recital 13
(13) An investment firm executing client orders against own proprietary capital should be deemed a systematic internaliser or in certain circumstances an OTF, unless the transactions are carried out outside regulated markets, MTFs and OTFs on an occasional, ad hoc and irregular 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 OTF. 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, a systematic internaliser should not be allowed to bring together third party buying and selling interests.
Amendment 242 #
Proposal for a directive
Recital 16
Recital 16
(16) Insurance or assurance undertakings the activities of which are subject to appropriate monitoring by the competent prudential-supervision authorities and which are subject to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) should be excluded, except as described in Article 1(4).
Amendment 243 #
Proposal for a directive
Recital 17 a (new)
Recital 17 a (new)
(17a) Investments are often sold to clients in the form of insurance contracts as an alternative to or substitute for financial instruments regulated under this Directive. To deliver consistent protection for retail clients, it is important that investments under insurance contracts are subject to the same conduct of business standards – in particular those relating to managing conflicts of interest, restrictions on inducements, and rules on ensuring the suitability of advice or appropriateness of non-advised sales. The investor protection and conflicts of interest requirements in this Directive should therefore be applied equally to those investments packaged under insurance contracts. Since investments involving insurance can have specific features that differ from other financial instruments (for example, because such investment products can involve an element of life insurance and so may need to be personalised to the client), the Directive provides for ESMA and EIOPA to work together to ensure as much consistency as possible in the conduct of business standards for insurance packaged retail investment products subject to this Directive, and any subsequent provisions in level 2 as relevant.
Amendment 244 #
Proposal for a directive
Recital 20
Recital 20
Amendment 245 #
Proposal for a directive
Recital 20
Recital 20
(20) It is necessary to exclude from the scope of this Directive central banks and other bodies performing similar functions as well as public bodies charged with or intervening in the management of the public debt, which concept covers the investment thereof, with the exception of bodies that are partly or wholly State- owned the role of which is commercial or linked to the acquisition of holdings. However, no public entities should be exempt from transaction reporting to the competent authorities.
Amendment 246 #
Proposal for a directive
Recital 21
Recital 21
Amendment 247 #
Proposal for a directive
Recital 21
Recital 21
(21) In order to clarify the regime of exemptions for the European System of Central Banks, other national bodies performing similar functions and the bodies intervening in the management of public debt, it is appropriate to limit such exemptions to the bodies and institutions performing their functions in accordance with the law of one Member State or in accordance with the legislation of the Union as well as to international bodies of which one or more Member States are members. However, no public entities should be exempt from transaction reporting to the competent authorities.
Amendment 253 #
Proposal for a directive
Recital 38 a (new)
Recital 38 a (new)
(38 a) In order to take a fully coherent approach to corporate governance across all financial entities within the EU, the corporate governance provisions contained herein should be the same as those included in Directive … [CRD IV], and proportionate to the size of the entity concerned.
Amendment 261 #
Proposal for a directive
Recital 46
Recital 46
(46) The use of trading technology has increased the speed, capacity and complexity of how investors trade. It has also enabled market participants to facilitate direct access by their clients to markets through the use of their trading facilities, through direct electronic access or sponsored and direct marketmarket access, unfiltered direct market access or sponsored access. Trading technology has provided benefits to the market and market participants generally such as wider participation in markets, increased liquidity, narrower spreads, reduced short term volatility and the means to obtain better execution of orders for clients. Yet, this trading technology also gives rise to a number of potential risks such as an increased risk of the overloading of the systems of trading venues due to large volumes of orders, risks of algorithmic trading generating duplicative or erroneous orders or otherwise malfunctioning in a way that may create a disorderly market. In addition there is the risk of algorithmic trading systems overreacting to other market events which can exacerbate volatility if there is a pre-existing market problem. Finally, algorithmic trading or high frequency trading can lend itself to certain forms of abusive behaviour if misused.
Amendment 262 #
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
(46a) ESMA technical guidelines issued in February 2012 "Systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities" (ESMA/2012/122) should be used as a comprehensive framework for including legally binding mechanisms in this Directive in order to strengthen the resilience of markets to take account of new trading technology. It is important that ESMA has the power to issue future guidelines in order to keep pace with rapid changes in trading technologies.
Amendment 278 #
Proposal for a directive
Recital 49
Recital 49
(49) In addition to measures relating to algorithmic and high frequency trading it is appropriate to include controls relating to investment firms providing direct electronicmarket access to markets for clients as electronic trading can be carried out via a firm providing electronic market access and many similar risks. It is also appropriate that firms providing direct electronicmarket access ensure that persons using this service are properly qualified and that risk controls are imposed on the use of the service. It is appropriate that detailed organisational requirements regarding these new forms of trading should be prescribed in more detail in delegated acts. This should ensure that requirements may be amended where necessary to deal with further innovation and developments in this area.
Amendment 283 #
Proposal for a directive
Recital 50
Recital 50
(50) There is a multitude of trading venues currently operating in the EU, among which a number are trading identical instruments. In order to address potential risks to the interests of investors it is necessary to formalise and further harmoniscoordinate the processes on the consequences for trading on other venues if one trading venue decides to suspend or remove a financial instrument from trading. In the interest of legal certainty and to adequately address conflicts of interests when deciding to suspend or to remove instruments from trading, it should be ensured that if one regulated market or MTF stops trading due to non disclosure of information about an issuer or financial instrument, the others follow that decisionare informed of that decision and follow it unless continuing trading may be justified due to exceptional circumstances. In addition, it is necessary to formalise and improve the exchange of information and the cooperation of trading venues in cases of exceptional conditions in relation to a particular instrument that is traded on various venues.
Amendment 287 #
Proposal for a directive
Recital 52
Recital 52
(52) In order to give all relevant information to investors, it is appropriate to require investment firms providing investment advice to clarify the basis of the advice they provide, notably the range of products they consider in providing personal recommendations to clients, whether they provide investment advice on an independent basis and whether they investment firms will provide the clients with the on-goinga periodic assessment of the suitability of the financial instruments recommended to them. It is also appropriate to require investment firms to explain their clients the reasons of the advice provided to them. In order to further define the regulatory framework for the provision of investment advice, while at the same time leaving choice to investment firms and clients, it is appropriate to establish the conditions for the provisions of this service when firms inform clients that the service is provided on an independent basis. In order to strengthen the protection of investors and increase clarity to clients as to the service they receive, it is appropriate to further restrict the possibility for firms to acceptprohibit firms from paying or receiveing inducements to or from third parties, and particularly from issuers, firms executing orders on behalf of clients, or product providers, when providing in relation to the service of investment advice on an independent basis and the service of portfolio managem, portfolio management or non-advised sales to retail clients. In such cases, only limited non-monetary benefits such as training on the features of the products and, for firms providing portfolio management, services related to execution of orders and research, should be allowed subject to the condition that they do notse services do not, or are not likely to, impair the ability of investment firms to pursueact in the best interest of their clients, as further clarified in Directive 2006/73/EC.
Amendment 299 #
Proposal for a directive
Recital 53
Recital 53
(53) Investment firms are allowed to provide investment services that only consist of execution and/or the reception and transmission of client orders, without the need to obtain information regarding the knowledge and experience of the client in order to assess the appropriateness of the service or the instrument for the client. Since these services entail a relevant reduction of clients' protections, it is appropriate to improve the conditions for their provision. In particular, it is appropriate to exclude the possibility to provide these services in conjunction with the ancillary service consisting of granting credits or loans to investors to allow them to carry out a transaction in which the investment firm is involved, since this increases the complexity of the transaction and makes more difficult the understanding of the risk involved. It is also appropriate to better define the criteria for the selection of the financial instruments to which these services should relate in order to exclude the financial instruments, including collective investment in transferable securities (UCITS), which embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved.
Amendment 305 #
Proposal for a directive
Recital 53 a (new)
Recital 53 a (new)
(53a) In order to ensure that financial advice is only provided by individuals with a minimum level of competency, Member States should establish a qualification system for anyone providing advice, regardless of the distribution channel. Given the differences between retail markets and investor needs in each Member State this should be determined at the level of the Member State.
Amendment 306 #
Proposal for a directive
Recital 54 a (new)
Recital 54 a (new)
(54a) The best approach to be taken with regards to packaged retail investment products would be horizontal, so no matter the type of product, the same rules for distributors apply. As such, the highest level of coordination should take place between this Directive and Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation.
Amendment 307 #
Proposal for a directive
Recital 58
Recital 58
(58) It is necessary to impose an effective ‘best execution’ obligation to ensure that investment firms execute client orders on terms that are most favourable to the client. This obligation should apply to the firm which owes contractual or agency obligations to the client, but should also be extended to eligible counterparties when they are acting on behalf of a client who is also subject to the best execution obligation.
Amendment 308 #
Proposal for a directive
Recital 58 a (new)
Recital 58 a (new)
(58a) In order to contribute to a wider shareholder base across the EU, the best execution framework should be enhanced for retail investors so they can access the wider range of execution venues that are now available across the EU. Advances in technology for monitoring best execution should be considered when applying the best execution framework.
Amendment 309 #
Proposal for a directive
Recital 60
Recital 60
(60) Information provided by investment firms to clients in relation to their order execution policies often are generic and standard and do not allow clients to understand how an order will be executed and to verify firms' compliance with their obligation to execute orders on term most favourable to their clients. In order to enhance investor protection it is appropriate to specify the principles concerning the information given by investment firms to their clients on the order execution policies and to require firms to make public, on an annual basis, for each class of financial instruments, the top five execution venues where they executed client orders in the preceding year, unless they chose only to execute on the primary exchange, and to take account of that information and information published by trading venues on execution quality in their policies on best execution.
Amendment 317 #
Proposal for a directive
Recital 72
Recital 72
(72) The provision of services by third country firms in the Union is subject to national regimes and requirements. These regimes are highly differentiated and the firms authorised in accordance with them do not enjoy the freedom to provide services and the right of establishment in Member States other than the one where they are established. It is appropriate to introduce a common regulatory framework at Union level. The regime should harmonize the existing fragmented framework, ensure certainty and uniform treatment of third country firms accessing the Union, ensure that andan effective equivalence assessment has been carried out by the Commission in relation to the regulatory and supervisory framework of third countries and should provide for a comparable level of protections to investors in the EU receiving services by third country firms. It is of the utmost importance that third country firms continue to be able to access EU markets without undue barriers.
Amendment 323 #
Proposal for a directive
Recital 73
Recital 73
(73) The provision of services to retail clients should always require the establishment of a branch 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. Sufficient initial capital should be at free disposal of the branch. Once authorised the branch should be subject to supervision in the Member State where the branch is established; the third country firm should be able to provide services in other Member States through the authorised and supervised branch, subject to a notification procedure. The provision of services without branches should be limited to eligible counterparties and professional investors. 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.
Amendment 326 #
Proposal for a directive
Recital 74
Recital 74
(74) The provision of this directive regulating the provision of services by third country firms in the Union should not affect the possibility for persons established in the Union to receive investment services by a third country firm at their own exclusive initiative. When a third country firm provides services at own exclusive initiative of a person established in the Union, the services should not be deemed as provided in the territory of the Union. In case a third country firm solicits clients or potential clients in the Union or promotes or advertises investment services or activities together with ancillary services in the Union, it should not be deemed as a service provided at the own exclusive initiative of the client.
Amendment 330 #
Proposal for a directive
Recital 74 a (new)
Recital 74 a (new)
(74a) When establishing effective equivalence for third country regimes, they should be limited to those provisions that have been agreed to at international fora such as the G20. While rules on the derivatives trading obligation should aim to be as coordinated as possible, in line with Regulation (EU) No …/… [EMIR], there are many parts of this Directive that are outside the G20 commitments, nor are they aimed at the stability of the financial system and therefore may not be appropriate for third countries to adopt directly.
Amendment 331 #
Proposal for a directive
Recital 74 b (new)
Recital 74 b (new)
(74b) When conducting the third country equivalence assessments the Commission should ensure that it follows an approach which prioritises the EU's largest trading partners first, leaving countries which only have a few firms accessing EU markets until after the more significant markets have been assessed.
Amendment 332 #
Proposal for a directive
Recital 74 c (new)
Recital 74 c (new)
Amendment 336 #
Proposal for a directive
Recital 78
Recital 78
(78) The introduction of a commercialprehensive solution for a consolidated tape for equities should contribute to creating a more integrated European market and make it easier for market participants to gain access to a consolidated view of trade transparency information that is available. The envisaged solution is based on an authorisation of providers working along pre-defined and supervised parameters which are in competition with each other in order to achieve technically highly sophisticated and innovative solutions, serving the market to the greatest extent possible. By requiring all Consolidated Tape Providers to consolidate all APA data it will be assured that competition will take place in the field of client services, not breadth of data covered.
Amendment 338 #
Proposal for a directive
Recital 78 a (new)
Recital 78 a (new)
(78a) Given the systemic risk implications of synthetic exchange-traded funds (ETFs) in particular, and their use by retail clients, it is of the utmost importance that more transparency is provided to investors in these products. Consolidated Tape provisions should also apply to equity-like instruments, particularly ETFs.
Amendment 340 #
Proposal for a directive
Recital 83 a (new)
Recital 83 a (new)
(83a) In April 2011, IOSCO's Task force on Commodity Futures Markets formally reported to the Financial Stability Board stating that: "Powers of intervention should include formalised position management powers, including the authority to set ex ante position limits where appropriate, to take action over positions which may potentially prejudice orderly market functioning at any stage of the contract; powers to impose price movement limits for given time periods (e.g. intra-day); or impose trading halts or cool down periods, all of which should be carefully designed and applied in the context of each specific commodity futures market."
Amendment 341 #
Proposal for a directive
Recital 83 b (new)
Recital 83 b (new)
(83 b) This approach was formally endorsed by the G20 Agriculture Ministers in their declaration in Paris on the 23 June 2011 "We support G20 Finance Ministers and Central Bank Governors stressing at their Washington Meeting on 14-15th April 2011, the need for participants on commodity derivatives markets to be subject to appropriate regulation and supervision, calling for enhanced transparency in both cash and derivatives markets as previously recommended by IOSCO, and looking forward to the finalization of IOSCO recommendations, by September 2011 on regulation and supervision in this area especially to address market abuses and manipulation, such as through formalized position management powers including the authority to set ex-ante position limits where appropriate, among other powers of interventions."
Amendment 342 #
Proposal for a directive
Recital 83 c (new)
Recital 83 c (new)
(83c) In September 2011, IOSCO set out its Principles for the Regulation and Supervision of Commodity Markets covering: contract design principles; principles for surveillance of commodity derivatives markets; principles to address disorderly commodity derivatives markets including position management powers, including the power to set position limits; principles for enforcement and information sharing; and principles for enhancing price discovery on commodity derivatives markets.
Amendment 343 #
Proposal for a directive
Recital 83 d (new)
Recital 83 d (new)
(83d) The IOSCO Principles were subsequently endorsed by the G20 summit in Cannes on 4 November 2011, stating that "[a]s part of our financial regulation agenda, we endorse the IOSCO recommendations to improve regulation and supervision of commodity derivatives markets. We agree that market regulators should be granted effective intervention powers to prevent market abuses. In particular, market regulators should have and use formal position management powers, among other powers of intervention, including the power to set ex-ante position limits, as appropriate."
Amendment 355 #
Proposal for a directive
Recital 89
Recital 89
(89) It is desirable to facilitate access to capital for smaller and medium sized enterprises and to facilitate the further development of specialist markets that aim to cater for the needs of smaller and medium sized issuers. These markets which are usually operated under this Directive as MTFs are commonly known as SME markets, growth markets or junior markets. The creation within the MTF category of a new sub category of SME growth market and the registration of these markets should raise their visibility and profile and aid the development of common pan-European regulatory standards for those markets. Attention should be focussed on how to provide future legislation for the further fostering and promotion of use of this market as a new asset class that will be attractive for investors. All other EU market regulation should be updated to provide a lessening of administrative burdens and to provide further incentives for listing of SMEs on the SME growth markets.
Amendment 370 #
Proposal for a directive
Article 1 – paragraph 3
Article 1 – paragraph 3
3. The following provisions shall also apply to credit institutions authorised under Directive 2006/48/EC, when providing one or more investment services and/or performing investment activities and when selling or advising clients in relation to deposits other than those with a rate of return which is determined in relation to an interest rate : – Articles 2(2), 9(6), 14, 16, 17 and 18, – Chapter II of Title II excluding second subparagraph of Article 29(2), – Chapter III of Title II excluding Articles 36(2), (3) and (4) and 37(2), (3), (4), (5), (6), (9) and (10), – Articles 69 to 80 and Articles 84, 89 and 90linked solely and directly to a key benchmark interest rate at Member State or EU level, or at a generally accepted international reference interest rate of a third country.
Amendment 375 #
Proposal for a directive
Article 1 – paragraph 3 a (new)
Article 1 – paragraph 3 a (new)
3a. The following provisions shall also apply to insurance undertakings and insurance intermediaries, including tied insurance intermediaries, authorised or registered under, respectively, Directive 2002/83/EC, Directive 2009/138/EC or Directive 2002/92/EC, when selling or advising clients in relation to insurance- based investments: - Article 16(3); - Articles 23 to 26; and - Articles 69-80 and 83-91 where necessary for competent authorities to give effect to the above Articles in relation to insurance-based investments.
Amendment 378 #
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) insurance undertakings or undertakings carrying on the reinsurance and retrocession activities referred to in Directive 2009/138/EC, except as described in Article 1(4);
Amendment 379 #
Proposal for a directive
Article 2 – paragraph 1 – point a a (new)
Article 2 – paragraph 1 – point a a (new)
(a a) foreign exchange spot markets;
Amendment 387 #
Proposal for a directive
Article 2 – paragraph 1 – point d – point ii a (new)
Article 2 – paragraph 1 – point d – point ii a (new)
(iia) are deemed to have a significant market presence by the competent authority;
Amendment 413 #
Proposal for a directive
Article 2 – paragraph 1 – point k
Article 2 – paragraph 1 – point k
Amendment 468 #
Proposal for a directive
Article 4 – paragraph 2 – point 27
Article 4 – paragraph 2 – point 27
27) ‘Management body’ means the governingbody or bodyies of a firm, comprising the supervisory and the managn institution, appointed in accordance with the national law, which is empowered to set the institution's strategy, objectives and overial funl directions, and which has the ultimate decision-making authority and is empowered to set the firm's strategy, objectives and overall direction. Management body shall include persons who effectively direct the business of the firmoversees and monitors management decision-making. This shall include persons who effectively direct the business of the institution. In particular, the references to management body shall comprise both the managerial and supervisory functions of the body or bodies referred to in the first sub-paragraph. Where, according to national law, the managerial and supervisory functions of the management body are assigned to different bodies or different members within one body, the Member State shall make the distinction between the responsible bodies or members of the management body in accordance with its national law, unless otherwise specified by the Directive. For the purpose of this Directive 'managerial function' means setting the institution's strategy, objectives and overall direction and 'supervisory function' means overseeing and monitoring management decision-making;
Amendment 470 #
Proposal for a directive
Article 4 – paragraph 2 – point 28
Article 4 – paragraph 2 – point 28
Amendment 473 #
Proposal for a directive
Article 4 – paragraph 2 – point 30 a (new)
Article 4 – paragraph 2 – point 30 a (new)
30a) 'High Frequency trading strategy' means a trading strategy in a financial instrument wich involves high frequency trading and at least five of the following characteristics: i) it uses co-location or proximity hosting facilities; ii) it uses Direct Market Access; iii) it relates to a daily portfolio turnover of at least 50%; iv) the ratio of orders to trades exceeds 4:1; v) the proportion of orders cancelled (including partial cancellations) exceeds 20%; vi) the majority of positions taken are unwound within the same day; vii) over 50% of the orders or transactions are made on trading venues offering discounts or rebates to orders which provide liquidity and are elgible for such rebates;
Amendment 484 #
Proposal for a directive
Article 4 – paragraph 2 – point 31
Article 4 – paragraph 2 – point 31
31) ‘Direct electronicmarket access’ in relation to a trading venue, means an arrangement where a member or participant of a trading venue permits a person to use its trading code so the person can electronically transmit orders relating to a financial instrument directly to the trading venue. This definition includes such an arrangement whether or not it also involves the use by the person of the infrastructure of the member or participant, or any connecting system provided by the member or participant, to transmit the orders;
Amendment 490 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 a (new)
Article 4 – paragraph 2 – point 33 a (new)
33a) 'Insurance-based investments' means insurance contracts where the amount payable to the client is exposed to the market value of an asset or payout from an asset or reference value, and where the client does not directly hold the asset;
Amendment 494 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 b (new)
Article 4 – paragraph 2 – point 33 b (new)
33b) "Total provider cost" means all the costs which a client is required to pay to an investment firm when purchasing an investment service or financial instrument, which shall include, calculated on a per annum basis: a) the annual management charge; b) custody and administration costs; c) performance fees, based on the latest 12 months disclosed performance fee or average of up to 3 years if the data is available; d) dealing costs, based on the latest 12 months disclosed performance fee or average of up to 3 years if the data is available; e) the total costs of all underlying funds in terms of their ongoing charges when the fund invests in any UCITS funds, ETFs or closed ended investment funds or any other pooled vehicle; f) any other costs not included above; The total provider cost shall be calculated as a percentage on a per annum basis.
Amendment 496 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 c (new)
Article 4 – paragraph 2 – point 33 c (new)
33c) "Total cost of investment" means all the costs which a client is required to pay when purchasing an investment service or financial instrument via a sales channel, which shall include the total provider cost and, calculated on a percentage per annum basis: a) platform fees, where not already included in the total provider cost; b) entry and exit costs, amortized over five years as the assumed length of the investment unless otherwise stated; c) adviser fees less any rebates returned to clients, amortised over five years as the assumed length of the investment unless otherwise stated; d) any other costs not included above. The total cost of the investment shall be calculated on a percentage per annum basis.
Amendment 497 #
Proposal for a directive
Article 4 – paragraph 3
Article 4 – paragraph 3
3. The Commission shall be empowered to adopt delegated acts in accordance with Article 94 concerning measures to specify some technical elements of the definitions laid down in paragraph 1 of this Article, to adjust them to market developments , in particular in relation to point 30a of paragraph 2.
Amendment 510 #
Proposal for a directive
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. Member States shall require that all members of the management body of any investment firm shall at all times be of sufficiently good repute, possess sufficient knowledge, skills and experience and commit sufficient time to perform their duties. Member States shall ensure that members of the management body shall, in particular, fulfil the following requirements:
Amendment 513 #
Proposal for a directive
Article 9 – paragraph 1 – point a – subparagraph 1 and subparagraph 2 – introductory part
Article 9 – paragraph 1 – point a – subparagraph 1 and subparagraph 2 – introductory part
(a) MThe members of the management body shall commit sufficient time to perform their functions in the investment firm. Theyof an institution, who intends to hold a position in the management body of several institutions at the same time, shall take into account individual circumstances and the nature, scale and complexity of the institution's activities. Members of the management body of institutions that are significant in terms of their size, internal organisation and the nature, the scope and the complexity of their activities shall not combine at the same time more than one of the following combinations: unless they can justify this to the relevant competent authority:
Amendment 516 #
Proposal for a directive
Article 9 – paragraph 1 – point a – point ii
Article 9 – paragraph 1 – point a – point ii
(ii) fourive non-executive directorships.
Amendment 517 #
Proposal for a directive
Article 9 – paragraph 1 – point a – subparagraph 3
Article 9 – paragraph 1 – point a – subparagraph 3
Executive or non-executive directorships held within the same group, including UCITS and/or AIF operated or managed by a member of the same group, shall be considered as one single directorship.
Amendment 518 #
Proposal for a directive
Article 9 – paragraph 1 – point a – subparagraph 3
Article 9 – paragraph 1 – point a – subparagraph 3
Amendment 520 #
Proposal for a directive
Article 9 – paragraph 1 – point a – subparagraph 4
Article 9 – paragraph 1 – point a – subparagraph 4
Amendment 522 #
Proposal for a directive
Article 9 – paragraph 1 – point c – subparagraph 2
Article 9 – paragraph 1 – point c – subparagraph 2
Amendment 524 #
Proposal for a directive
Article 9 – paragraph 2
Article 9 – paragraph 2
2. Member States shall require investment firms, where appropriate and proportionate in view of the nature, scale and complexity of their business, to establish a nomination committee or equivalent body to assess compliance with the first paragraph and to make recommendations, when needed, on the basis of their assessment. The nomination committee shall be composed of members of the management body who do not perform any executive function in the institution concerned. Where, under national law, the management body does not have any competence in the process of appointment of its members, this paragraph shall not apply.
Amendment 533 #
Proposal for a directive
Article 9 – paragraph 4
Article 9 – paragraph 4
Amendment 574 #
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
1. An investment firm that engages in algorithmic trading including high frequency trading strategies shall have in place effective systems and risk controls proportionate to the business it operates to ensure that its trading systems are resilient and have sufficient capacity, are subject to appropriate trading thresholds and limits and prevent the sending of erroneous orders or the system otherwise functioning in a way that may create or contribute to a disorderly market. Such a firm shall also have in place effective systems and risk controls to ensure the trading systems cannot be used for any purpose that is contrary to Regulation (EU) No [MAR] or to the rules of a trading venue to which it is connected. The firm shall have in place effective and proportionate continuity business arrangements to deal with any unforeseen failure of its trading systems and shall ensure its systems are fully tested and properly monitored to ensure they meet the requirements in this paragraph.
Amendment 583 #
Proposal for a directive
Article 17 – paragraph 2
Article 17 – paragraph 2
2. An investment firm that engages in algorithmic trading shall at least annuallyand high frequency trading strategies shall, upon initial authorisation or at least annually, as well as when any material changes occur to the trading strategy, provide to itsheir home Competent Authority with a description of the nature of its algorithmic trading strategies, details of the trading parameters or limits to which the system is subject, the key compliance and risk controls that it has in place to ensure the conditions in paragraph 1 are satisfied and details of the testing of its systems. A competent authority may at any time request further information from an investment firm about its algorithmic trading and the systems used for that trading.
Amendment 588 #
Proposal for a directive
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
2a. An investment firm that engages in a high frequency trading strategy shall store in an approved form, the raw audit trail of any quotation and trading activities performed on any trading venue and make it available to the national competent authority upon request.
Amendment 591 #
Proposal for a directive
Article 17 – paragraph 3
Article 17 – paragraph 3
3. An algorithmic trading strategy shall beinvestment firm engaging in algorithmic trading shall ensure that each high frequency algorithmic trading strategy it operates is in continuous operation during the trading hours of the trading venue to which ithe investment firm sends orders or through the systems of which it executes transactions. The trading parameters or limits of an high frequency algorithmic trading strategy shall ensure that the high frequency algorithmic trading strategy posts firm quotes at competitive prices in line with its ordinary trading behaviour, with the result of providing liquidity on a regular and ongoing basis to these trading venues at all times, regardless of prevailing market conditions. . Under exceptional circumstances, where this would contravene the risk controls established in accordance with paragraph 1, investment firms may withdraw from the market. ESMA shall produce guidelines specifying the types of conditions that would warrent this withdrawal for trading venues to incorporate into their operating rules. Should an investment firm withdraw from the market under the provisions of this paragraph, it must inform the trading venue and the national competent authority immedietly.
Amendment 604 #
Proposal for a directive
Article 17 – paragraph 4
Article 17 – paragraph 4
4. An investment firm that provides direct electronicmarket access to a trading venue shall have in place effective systems and controls which ensure a proper assessment and review of the suitability of persons using the service, that persons using the service are prevented from exceeding appropriate pre set trading and credit thresholds, that trading by persons using the service is properly monitored and that appropriate risk controls prevent trading that may create risks to the investment firm itself or that could create or contribute to a disorderly market or be contrary to Regulation (EU) No [MAR] or the rules of the trading venue. The investment firm shall ensure that there is a binding written agreement between the firm and the person regarding the essential rights and obligations arising from the provision of the service and that under the agreement the firm retains responsibility for ensuring trading using that service complies with the requirements of this Directive, the Regulation (EU) No [MAR] and the rules of the trading venue.
Amendment 607 #
Proposal for a directive
Article 17 – paragraph 4 a (new)
Article 17 – paragraph 4 a (new)
4a. Investment firms shall not provide their clients with unfiltered direct market access to any trading venue.
Amendment 610 #
Proposal for a directive
Article 17 – paragraph 6
Article 17 – paragraph 6
6. The Commission shall be empowered to adopt delegated acts in accordance with Article 94 concerning measures toESMA shall develop draft regulatory technical standards specifying the detailed organisational requirements laid down in paragraphs 1 to 5 to be imposed on investment firms performing different investment services and/or activities and ancillary services or combinations thereof. 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 first subparagraph in accordance with Articles 10-14 of Regulation (EU) No 1095/2010. __________________ * OJ please insert date: 12 months after entry into force of this Directive.
Amendment 645 #
Proposal for a directive
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Member States shall require that investment firms and market operators operating an OTFs establish arrangements preventing the execution of client orders in an OTF against the proprietary capital of the investment firm or market operator operating the OTF. The investment firm shall not act as a systematic internaliser in an OTF operated by itself. An OTF shall not connect with another OTF in a way which enables orders in different OTFs to interact. shall not act as a systematic internaliser in an OTF operated by itself. An OTF shall not connect with another OTF in a way which enables orders in different OTFs to interact. Investment firms and market operators of an OTF shall allow clients to choose whether their orders are executed against the proprietary capital of the investment firm or market operator.
Amendment 671 #
Proposal for a directive
Article 23 – paragraph 2 a (new)
Article 23 – paragraph 2 a (new)
2a. Member States shall ensure that any income received directly by any fund should be returned net of all direct costs to the fund's holders. Where these direct costs are set by associate companies of the fund management group, they must be proportionate to equivalent external costs and signed off by independent directors.
Amendment 686 #
Proposal for a directive
Article 24 – paragraph 2
Article 24 – paragraph 2
2. All information, including advertising and marketing communications, addressed by the investment firm to clients or potential clients shall be fair, clear and not misleading. Marketing communications shall be clearly identifiable as such. Any advertising or marketing communications shall specify clearly and prominently, in the format outlined in Annex IIa: a) the total provider cost, in the case of an investment service or financial instrument being promoted by an investment firm; b) the total cost of investment, in the case of an investment service or financial instrument being promoted via a sales channel whereby additional charges or rebates are applied.
Amendment 702 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 2
Article 24 – paragraph 3 – subparagraph 1 – indent 2
– financial instruments and proposed investment strategies; this should include a full breakdown of all underlying holdings held both directly and indirectly, and a commitment to provide a full percentage breakdown on at least a quarterly basis with a maximum reporting delay of 60 days and appropriate guidance on and warnings of the risks associated with investments in those instruments or in respect of particular investment strategies,
Amendment 707 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 4
Article 24 – paragraph 3 – subparagraph 1 – indent 4
– costs and associated charges, including a full breakdown of management fees, all underlying costs or charges, and: a) the total provider cost, in the case of an investment service or financial instrument being promoted to a client or potential client by an investment firm; b) the total cost of investment, in the case of an investment service or financial instrument being promoted to a client or potential client via a sales channel.
Amendment 723 #
Proposal for a directive
Article 24 – paragraph 5 – introductory part
Article 24 – paragraph 5 – introductory part
5. When theAn investment firm shall informs the client thatwhether its investment advice is provided on an independent basis, or restricted basis, and, in the case of independent advice the firm:
Amendment 732 #
Proposal for a directive
Article 24 – paragraph 5 – point i
Article 24 – paragraph 5 – point i
(i) shall assess a sufficiently large numbercomprehensive range of financial instruments available on theacross the entire relevant market. The financial instruments considered should be diversified with regard to both their type and issuers or product providers and should not be limited to financial instruments issued or provided by entities having close links with the investment firm,. Firms which cannot provide sufficiently broad analysis of financial instruments across the market must make clear to the client that their advice is not independent.
Amendment 740 #
Proposal for a directive
Article 24 – paragraph 5 – point ii
Article 24 – paragraph 5 – point ii
Amendment 762 #
Proposal for a directive
Article 24 – paragraph 6
Article 24 – paragraph 6
6. When providing portfolio management the investment firm shall not accept or receiveAn investment firm that provides investment advice or portfolio management to a retail client, or sells a financial instrument to a retail client without advice, must only receive remuneration for these and any closely related services from the client. In relation to all of these services an investment firm: i) shall not accept fees, commissions or any monetary or non-monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clientseven where the firm intends to refund any such payments to the client, ii) shall clearly set out its charges for the retail client in a single monetary figure or simple percentage terms, iii) when distributing its own products, shall not bundle advice, portfolio management or distribution charges with product charges, but must disclose the cost of such activities separately, based upon their economic cost, iv) must not assess employee performance, or calculate employee remuneration in a way that is significantly dependent on sales volumes or profits generated by the employee for the firm.
Amendment 773 #
Proposal for a directive
Article 24 – paragraph 6 a (new)
Article 24 – paragraph 6 a (new)
6 a. An investment firm must not offer or pay any fees, commissions or monetary or non-monetary benefits to another investment firm or third party for the benefit of another firm, in relation to the other firm advising, selling to, or managing financial instruments for retail clients, or any closely related services.
Amendment 784 #
Proposal for a directive
Article 24 – paragraph 8 a (new)
Article 24 – paragraph 8 a (new)
8 a. Member States shall require that individuals providing any kind of investment advice or, where appropriate, ancillary services to clients, possess an appropriate level of knowledge and competence based upon recognised qualifications.
Amendment 797 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – introductory part
Article 25 – paragraph 3 – subparagraph 1 – introductory part
Member States shall allow investment firms when providing investment services that only consist of execution or the reception and transmission of client orders with or without ancillary services , with the exclusion of the ancillary service specified in Section B (1) of Annex 1 , to provide those investment services to their clients without the need to obtain the information or make the determination provided for in paragraph 2 where all the following conditions are met:
Amendment 803 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point i
Article 25 – paragraph 3 – subparagraph 1 – point a – point i
(i) shares admitted to trading on a regulated market or on an equivalent third-country market or on a MTF, where these are shares in companies, and excluding shares in non-UCITS collective investment undertakings and shares that embed a derivative;
Amendment 807 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point ii
Article 25 – paragraph 3 – subparagraph 1 – point a – point ii
(ii) bonds or other forms of securitised debt, admitted to trading on a regulated market or on an equivalent third country market or on a MTF, excluding those that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved;
Amendment 812 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point iii
Article 25 – paragraph 3 – subparagraph 1 – point a – point iii
(iii) money market instruments, excluding those that embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved;
Amendment 821 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
(iv) shares or units in UCITS excluding structured UCITS as referred to in Article 36 paragraph 1 subparagraph 2 of Commission Regulation 583/2010;
Amendment 828 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point v
Article 25 – paragraph 3 – subparagraph 1 – point a – point v
(v) other non-complex financial instruments for the purpose of this paragraph , including structured UCITS and shares in non- UCITS, which are assessed by an investment firm as non-complex.
Amendment 845 #
Proposal for a directive
Article 27 – paragraph 1
Article 27 – paragraph 1
1. Member States shall require that investment firms take all reasonable steps to obtain, when executing orders, the best possible result for their clients taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order. Nevertheless, whenever there is a specific instruction from the client the investment firm shall execute the order following the specific instruction. Following execution of a transaction on behalf of a client, the investment firm shall make available upon request, information on how the order was executed and upon which venue.
Amendment 853 #
Proposal for a directive
Article 27 – paragraph 5 – subparagraph 2
Article 27 – paragraph 5 – subparagraph 2
Member States shall require investment firms to summarize and make public on an annual basis, for each class of financial instruments, the top five execution venues where they executed client orders in the preceding year unless they have chosen in their best execution policy to only execute client orders on the primary market.
Amendment 864 #
Proposal for a directive
Article 29 – paragraph 3 – subparagraph 2
Article 29 – paragraph 3 – subparagraph 2
Member States shall ensure that tied agents are only admitted to the public register if it has been established that they are of sufficiently good repute and that they possess an appropriate general, commercial and professional knowledgelevel of knowledge and competence based upon recognised qualifications so as to be able to communicate accurately all relevant information regarding the proposed service to the client or potential client.
Amendment 869 #
Proposal for a directive
Article 29 – paragraph 5 – subparagraphs 1 a and 1 b (new)
Article 29 – paragraph 5 – subparagraphs 1 a and 1 b (new)
Investment firms shall provide full and complete information on their investment services and financial instruments to tied agents, to be updated on at least a quarterly basis with a maximum reporting delay of 60 days. Tied agents shall be required to provide this information to the client or potential client in advance of receiving orders or placing financial instruments.
Amendment 875 #
Proposal for a directive
Article 30 – paragraph 2 – subparagraph 2
Article 30 – paragraph 2 – subparagraph 2
Classification as an eligible counterparty under the first subparagraph shall be without prejudice to the right of such entities to requestnotify their brokers, either on a general form or on a trade-by-trade basis, treatmentof their right to be treated as clients whose business with the investment firm is subject to Articles 24, 25, 27 and 28.
Amendment 877 #
Proposal for a directive
Article 30 – paragraph 5 – point a
Article 30 – paragraph 5 – point a
(a) the procedures for requestingnotifying a broker of their right to be treatmented as clients under paragraph 2;
Amendment 890 #
Proposal for a directive
Article 32 – paragraph 3
Article 32 – paragraph 3
3. The Commission shall be empowered to adESMA shall developt delegated acts in accordance with Article 94raft regulatory technical standards to list the specific situations constituting significant damage to the investors' interests and the orderly functioning of the internal market referred to in paragraphs 1 and 2 and to determine issues relating to the non-disclosure of information about the issuer or financial instrument as referred to in paragraph 1. 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 first subparagraph in accordance with Articles 10-14 of Regulation (EU) No 1095/2010. __________________ *OJ please insert date 12 months after entry into force of this Directive.
Amendment 935 #
Proposal for a directive
Article 41 – paragraph 3 – subparagraph 1
Article 41 – paragraph 3 – subparagraph 1
The Commission may adopt a decision in accordance with the procedure referred to in Article 95 in relation to a third country if the legal and supervisory arrangements of that third country ensure that firms authorised in that third comply with legally binding requirements which have equivalent effect to the requirements set out in this Directive, in Regulation (EU) No …/… [MiFIR] and in Directive 2006/49/EC [Capital Adequacy Directive] and their implementing measures and that third country provides for equivalent reciprocal recognition of the prudential framework applicable to investment firms authorised in accordance with this directive.
Amendment 939 #
Proposal for a directive
Article 41 – paragraph 3 – subparagraph 2 – introductory part
Article 41 – paragraph 3 – subparagraph 2 – introductory part
The prudential framework of a third country may be considered to have equivalent effect where that framework fulfils all the following conditions:
Amendment 960 #
Proposal for a directive
Article 46 a (new)
Article 46 a (new)
Article 46 a Provision of services and activities without a passport 1. Member States may continue to authorise third country firms to provide investment services within their own territory via branches. 2. Firms authorised under paragraph 1 shall not be eligible for an EU passport in the event that they do not also register with ESMA.
Amendment 962 #
Proposal for a directive
Article 48 – paragraph 1 – introductory part
Article 48 – paragraph 1 – introductory part
1. Member States shall require that all members of the management body of any market operator shall be at all times of sufficiently good repute, possess sufficient knowledge, skills and experience and commit sufficient time to perform their duties. Member States shall ensure that members of the management body shall, in particular, fulfil the following requirementsThe member of the management body of an institution, who intends to hold a position in the management body of several institutions at the same time, shall take into account individual circumstances and the nature, scale and complexity of the institution's activities. Members of the management body of institutions that are significant in terms of their size, internal organisation and the nature, the scope and the complexity of their activities shall not combine at the same time more than one of the following combinations unless they can justify this to the relevant competent authority:
Amendment 964 #
Proposal for a directive
Article 48 – paragraph 1 – point a – introductory part
Article 48 – paragraph 1 – point a – introductory part
(a) commit sufficient time to perform their functions. They shall not combine at the same time more than one of the following combinations:
Amendment 966 #
Proposal for a directive
Article 48 – paragraph 1 – point a – point ii
Article 48 – paragraph 1 – point a – point ii
(ii) fourive non-executive directorships.
Amendment 967 #
Proposal for a directive
Article 48 – paragraph 1 – point a – subparagraph 3
Article 48 – paragraph 1 – point a – subparagraph 3
Amendment 969 #
Proposal for a directive
Article 48 – paragraph 1 – point a – subparagraph 4
Article 48 – paragraph 1 – point a – subparagraph 4
Amendment 970 #
Proposal for a directive
Article 48 – paragraph 3
Article 48 – paragraph 3
Amendment 973 #
Proposal for a directive
Article 48 – paragraph 4 – subparagraph 1
Article 48 – paragraph 4 – subparagraph 1
Amendment 986 #
Proposal for a directive
Article 51 – paragraph 1
Article 51 – paragraph 1
1. Member States shall require a regulated market to have in place effective systems, procedures and arrangements which are designed to ensure its trading systems are resilient, have sufficient capacity to deal with peak order and message volumes, are able to ensure orderly trading under conditions of market stress, are fully tested to ensure such conditions are met even in times of extreme market volatility and are subject to effective business continuity arrangements to ensure continuity of its services if there is any unforeseen failure of its trading systems.
Amendment 998 #
Proposal for a directive
Article 51 – paragraph 2
Article 51 – paragraph 2
2. Member States shall require a regulated market to have in place effective systems, procedures and arrangements to reject orders that exceed pre-determined volume and price thresholds or are clearly erroneous and to be able to temporarily halt trading if there is a significant price movement in a financial instrument on that market or a related market during a short period and, in exceptional cases, to be able to cancel, vary or correct any transactionif it is informed by the related market operator of such a movement.
Amendment 1001 #
Proposal for a directive
Article 51 – paragraph 2 a (new)
Article 51 – paragraph 2 a (new)
2a. Member States shall require regulated markets to communicate to all other relevant venues when any of the circumstances under paragraph 2 have occurred so as to coordinate a market- wide response.
Amendment 1003 #
Proposal for a directive
Article 51 – paragraph 3
Article 51 – paragraph 3
3. Member States shall require a regulated market to have in place effective systems, procedures and arrangements to allow for identification of orders following either an algorithmic trading strategy or a high frequency trading strategy and to further ensure that algorithmic or high frequency trading systems cannot create or contribute to disorderly trading conditions on the market including systems to limit the ratio of unexecuted orders to transactions that may be entered into the system by a member or participant, to be able to slow down the flow of orders if there is a risk of its system capacity being reached and to limit the minimum tick size that may be executed on the market.
Amendment 1013 #
Proposal for a directive
Article 51 – paragraph 4 – subparagraph 1
Article 51 – paragraph 4 – subparagraph 1
Member States shall require a regulated market that permits direct electronicmarket access to have in place effective systems procedures and arrangements to ensure that members or participants are only permitted to provide such services if they are an authorised investment firm under this Directive, that appropriate criteria are set and applied regarding the suitability of persons to whom such access may be provided and that the member or participant retains responsibility for orders and trades executed using that service.
Amendment 1019 #
Proposal for a directive
Article 51 – paragraph 4 – subparagraph 2
Article 51 – paragraph 4 – subparagraph 2
Member States shall also require that the regulated market set appropriate standards regarding risk controls and thresholds on trading through such access and is able to distinguish and if necessary to stop orders or trading by a person using direct electronicmarket access separately from orders or trading by the member or participant.
Amendment 1028 #
Proposal for a directive
Article 51 – paragraph 5 a (new)
Article 51 – paragraph 5 a (new)
5a. Member States shall require that a regulated market ensures that its fee structures including execution fees, ancillary fees and any rebates, are transparent, fair and non-discriminatory and that they do not create incentives to place, modify or cancel orders or to execute transactions in a way which contributes to disorderly trading conditions or market abuse. In particular, Member States shall require a regulated market (i) to impose market making obligations in the individual shares or a suitable basket of shares, in exchange for any rebates that are granted, (ii) to impose a higher fee for placing an order that is subsequently cancelled than an order which is executed and shall impose a higher fee on participants placing a high ratio of cancelled orders to executed orders in order to reflect the additional burden on system capacity. Member States shall allow a regulated market to adjust its fees for cancelled orders according to the length of time for which the order was maintained.
Amendment 1031 #
Proposal for a directive
Article 51 – paragraph 7 – introductory part
Article 51 – paragraph 7 – introductory part
7. The Commission shall be empowered to adESMA shall developt delegated acts in accordance with Article 94raft regulatory technical standards concerning the requirements laid down in this Article, and in particular:
Amendment 1036 #
Proposal for a directive
Article 51 – paragraph 7 – point b
Article 51 – paragraph 7 – point b
(b) to set out conditions under which trading should either be halted if there is aor allow for alternative arrangements where specific limits are set between which trading should be restricted to, in order to prevent significant price movement in a financial instrument on that market or a related market during a short period;
Amendment 1041 #
Proposal for a directive
Article 51 – paragraph 7 – point c
Article 51 – paragraph 7 – point c
(c) to set out the maximum and minguidelines for the maximum ratio of unexecuted orders to transactions that may be adopted by regulated markets and minimum tick sizes that should be adoptedfor individual shares across trading venues that should be agreed between regulated markets and other trading venues;
Amendment 1048 #
Proposal for a directive
Article 51 – paragraph 7 – point d
Article 51 – paragraph 7 – point d
(d) to establish controls concerning direct electronicmarket access;
Amendment 1056 #
Proposal for a directive
Article 51 – paragraph 7 – subparagraphs 1 a and 1 b (new)
Article 51 – paragraph 7 – subparagraphs 1 a and 1 b (new)
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 this paragraph in accordance with Articles 10-14 of Regulation (EU) No 1095/2010. __________________ *OJ please insert date: 12 months after entry into force of this Directive.
Amendment 1092 #
Proposal for a directive
Article 59 – title
Article 59 – title
Position management including position limits
Amendment 1096 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Member States shall ensure that regulated markets, operators of MTFs and OTFs which admit to trading or trade commodity derivatives apply limits on the number of contractslevel of open interest which any given market members or participants can enter into over a specified period of timehold towards the end of a contract's expiry, or alternative arrangements with equivalent effect such as position management with automatic review thresholds, to be imposed in order to:
Amendment 1115 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 2
Article 59 – paragraph 1 – subparagraph 2
The limits or arrangements shall be transparent and non-discriminatory, specifying the persons to whom they apply and any exemptions, and taking account of the nature and composition of market participants and of the use they make of the contracts admitted to trading. They shall specify clear quantitative thresholds such as the maximum number of contractsopen interest a persons can enterhold towards the end of a contract's expiry, taking account of the characteristics of the underlying commodity market, including patterns of production, consumption and transportation to market.
Amendment 1188 #
Proposal for a directive
Article 65 – paragraph 1 – subparagraph 1
Article 65 – paragraph 1 – subparagraph 1
Member States shall require that all members of the management body of a data reporting services provider shall at all times be of sufficiently good repute, possess sufficient knowledge, skills and experience and commit sufficient time to perform their duties.
Amendment 1189 #
Proposal for a directive
Article 65 – paragraph 1 – subparagraph 2
Article 65 – paragraph 1 – subparagraph 2
The management body shall possess adequate collective knowledge, skills and experience to be able to understand the activities of the data reporting services provider. Member States shall ensure that eEach member of the management body shall act with honesty, integrity and independence of mind to effectively assess and challenge the decisions of the senior management.
Amendment 1201 #
Proposal for a directive
Article 67 – paragraph 3
Article 67 – paragraph 3
3. The home Member State shall require the CTP to ensure that the data provided is consolidated from at leastll of the regulated markets, MTFs, OTFs and APAs and for the financial instruments specified by delegated acts under paragraph 8(c)covered by this Directive in order to ensure the provision of a complete consolidated tape.
Amendment 1206 #
Proposal for a directive
Article 67 – paragraph 8 – point c
Article 67 – paragraph 8 – point c
Amendment 1211 #
Proposal for a directive
Article 68 – paragraph 5
Article 68 – paragraph 5
5. The Commission mayshall adopt, by means of delegated acts in accordance with Article 394, measures clarifying what constitutes a reasonable commercial basis to report information as referred to in paragraph 1.
Amendment 1218 #
Proposal for a directive
Article 71 – paragraph 2 – point d
Article 71 – paragraph 2 – point d
(d) require existing telephone and existing data traffic records held by investment firms where a reasonable suspicion exists that such records related to the subject- matter of the inspection may be relevant to prove a breach by the investment firm of its obligations under this Directive; these records shall however not concernincluding the content of the communication to which they relate;
Amendment 1283 #
Proposal for a directive
Article 96 – paragraph 1 – point c
Article 96 – paragraph 1 – point c
(c) the impact of requirements regarding automated and high-frequency trading, including a review of the obligations specified in Article 17 paragraph 3 and whether it is functioning correctly or should be extended to cover baskets of shares as well as single shares;
Amendment 1284 #
Proposal for a directive
Article 96 – paragraph 1 – point c a (new)
Article 96 – paragraph 1 – point c a (new)
(ca) whether the minimum tick size requirements described in Article 17 have had a material impact upon the operations of the market;
Amendment 1286 #
Proposal for a directive
Article 96 – paragraph 1 – point f
Article 96 – paragraph 1 – point f
(f) the functioning of the consolidated tape established in accordance with Title V, in particular the availability of post-trade information of a high quality in a consolidated format capturing the entire market in accordance with user-friendly standards at a reasonable cost. In order to ensure the quality and the accessibility of consolidated post-trade information, the Commission shall submit its report accompanied, if appropriate, by a legislative proposal for the establishment of a single entity operating a consolidated tape in all asset classes.
Amendment 1293 #
Proposal for a directive
Annex 1 – Section A – point 9
Annex 1 – Section A – point 9
Amendment 1301 #
Proposal for a directive
Annex 1 – Section B – point 1 a (new)
Annex 1 – Section B – point 1 a (new)
(1a) Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;
Amendment 1321 #
Proposal for a directive
Annex 2 a (new)
Annex 2 a (new)
Annex IIa Specifications of costs for advertising or marketing communications % Notes pa (All calculations based on minimum required investment or typical size if no minimum) % Annual Management Charge (AMC) % Custody & admin costs etc % Performance fee Based on 12 months disclosed performance fee or average of up to three years if data available. % Dealing costs Based on latest 12 months or average of up to three years if data available. Dealing costs = Portfolio Turnover Rate X estimated full cost buying/selling underlying assets. Most funds will simply use a common agreed schedule of costs. % Any other costs E.g. extra costs of underlying funds when investing in a “fund of fund” structure if not already included above. Less any other recurring E.g. net securities lending revenues or revenues other recurring income received based on last 12 months or average of up to last three years if data available. Total Provider Cost (TPC) This is the figure that should be advertised by fund managers. Platform fees via Sales Channel Where not already included in above A figures. Entry / Exit costs via Sales Any charges should be amortised over Channel A five years as the assumed length of investment unless stated otherwise e.g. for pensions. Advisor fees / rebates or any Amortised over five years unless clearly other charges/recurring revenues stated as per above. not included above via Sales Channel A Total Cost of Investment (TCI) This is the figure that should be via Sales Channel A advertised by the sales channel.