BETA

89 Amendments of Sylvie GOULARD related to 2011/0298(COD)

Proposal for a directive
Recital 12

(12) All trading venues, namely regulated markets, MTFs, and ~~OTF~~Systematic Internalisers, should lay down transparent rules governing access to the facility. However, while regulated markets and MTFs should continue to be subject to highly similar requirements regarding whom they may admit as members or participants, ~~OTF~~Systematic Internalisers should be able to determine and restrict access based inter alia on the role and obligations which their operators have in relation to their clients.

2012/05/15
Committee: ECON

Proposal for a directive
Recital 13

(13) An investment firm executing client orders against own proprietary capital should be deemed a systematic internaliser, unless the transactions are carried out on OTC basis where trading refers to bilateral trading outside regulated markets, ~~MTFs~~ and OMTFs on an occasional, ad hoc ~~and~~ irregular basis and at sizes above standard market size and with eligible counterparties. Systematic internalisers should be defined as investment firms which, on an organised, frequent and systematic basis, deal on own account by executing client orders outside a regulated market, ~~an MTF~~ or an OMTF. In order to ensure the objective and effective application of this definition to investment firms, any bilateral trading carried out with clients should be relevant and quantitative criteria should complement the qualitative criteria for the identification of investment firms required to register as systematic internalisers, laid down in Article 21 of Commission Regulation No 1287/2006 implementing Directive 2004/39/EC. ~~While an OTF is any system or facility in which multiple third party buying and selling interests interact in the system, a~~A systematic internaliser should not be allowed to bring together third party buying and selling interests.

2012/05/15
Committee: ECON

Proposal for a directive
Recital 47

(47) These potential risks from increased use of technology are best mitigated by a combination of specific risk controls directed at firms who engage in algorithmic or high frequency trading and other measures directed at operators of trading venues that are accessed by such firms. It is desirable to ensure that allgorithmic and high frequency trading ~~firms be authorised when they are a direct member of a trading venue. This should ensure they are~~is considered as investment services or activities including when they are conducted on own account. This should ensure they that firms providing these activities are authorised as investment firms and subject to organisational requirements under the Directive and are properly supervised.

2012/05/15
Committee: ECON

Proposal for a directive
Recital 61

(61) When establishing the business relationship with the client the investment firm might ask the client or potential client to consent at the same time to the execution policy as well as to the possibility that his orders may be executed outside a regulated market MTF~~, OTF~~ or systematic internaliser.

2012/05/15
Committee: ECON

Proposal for a directive
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 and 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.deleted

2012/05/15
Committee: ECON

Proposal for a directive
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. 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.deleted

2012/05/15
Committee: ECON

Proposal for a directive
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.deleted

2012/05/15
Committee: ECON

Proposal for a directive
Recital 75

(75) The authorisation to operate a regulated market should extend to all activities which are directly related to the display, processing, execution, confirmation and reporting of orders from the point at which such orders are received by the regulated market to the point at which they are transmitted for subsequent finalisation, and to activities related to the admission of financial instruments to trading. This should also include transactions concluded through the medium of designated market makers appointed by the regulated market which are undertaken under its systems and in accordance with the rules that govern those systems. Not all transactions concluded by members or participants of the regulated market~~, MTF~~ or OMTF are to be considered as concluded within the systems of a regulated market, MTF ~~or OTF~~ . Transactions which members or participants conclude on a bilateral basis and which do not comply with all the obligations established for a regulated market~~, an MTF~~ or an OMTF under this Directive should be considered as transactions concluded outside a regulated market~~, an MTF~~ or an OMTF for the purposes of the definition of systematic internaliser. In such a case the obligation for investment firms to make public firm quotes should apply if the conditions established by this Directive are met.

2012/05/15
Committee: ECON

Proposal for a directive
Recital 94

(94) In view of the significant impact and market share acquired by various MTFs, it is appropriate to ensure that adequate cooperation arrangements are established between the competent authority of the MTF and that of the jurisdiction in which the MTF is providing services. ~~In order to anticipate any similar developments, this should be extended to OTFs.~~

2012/05/15
Committee: ECON

Proposal for a directive
Recital 108

(108) Technical standards in financial services should ensure consistent harmonisation and adequate protection of depositors, investors and consumers across the Union. As a body with highly specialised expertise, it would be efficient and appropriate to entrust ESMA, with the elaboration of draft regulatory and implementing technical standards which do not involve policy choices, for submission to the Commission. To ensure consistent investor and consumer protection across financial services sectors, ESMA should carry out its tasks, to the extent possible, in close cooperation with the other two ESAs within the framework of the Joint Committee.

2012/05/15
Committee: ECON

Proposal for a directive
Recital 110

(110) The Commission should also be empowered to adopt implementing technical standards by means of implementing acts pursuant to Article 291 TFEU and in accordance with Article 15 of Regulation (EU) No 1095/2010. ESMA should be entrusted with drafting implementing technical standards for submission to the Commission with regard to Article 7 regarding procedures for granting and refusing requests for authorisation of investment firms, Article 12 regarding acquisition of qualifying holding, Article 18 regarding trading process on finalisation of transactions in MTFs ~~and OTFs~~, Articles 32, 33 and 53 regarding suspension and removal of instruments from trading, Article 36 regarding freedom to provide investment services and activities, Article 37 regarding establishment of a branch, Article 44 regarding provision of services by third country firms, Article 60 regarding position reporting by categories of traders, Article 78 regarding submission of information to ESMA, Article 83 regarding obligation to cooperate, Article 84 regarding cooperation among competent authorities, Article 85 regarding exchange of information and Article 88 regarding consultation prior to authorisation.

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point d – point ii a (new)

(iia) engage in algorithmic trading; or

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point d – point iii

(iii) deal on own account bywhen executing client orders outside a regulated market or an MTF on an organised, frequent and systematic basis by providing a system accessible to third parties in order to engage in dealings with them;

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point d – subparagraph 2

This exemption does not apply to persons exempt under Article 2(1)(i) who deal on own account in financial instruments as members or participants of a regulated market or MTF, including as market makers in relation to commodity derivatives, emission allowances, or derivatives thereof;deleted

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point i – indent 1

– deal on own account in financial instruments, excluding persons who deal on own account bywhen executing client orders, or

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point i – subparagraph 2

provided that in all cases ~~this~~such provision of investment services is of limited importance and is an ancillary activity to their main business, when considered on a group basis, and that main business is not the provision of investment services within the meaning of this Directive or banking services under Directive 2006/48/EC ;

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 1 – point k

(k) firms which provide investment services and/or perform investment activities consisting exclusively in dealing on own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets or which deal for the accounts of other members of those markets or make prices for them and which are guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such firms is assumed by clearing members of the same markets;deleted

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 3 – subparagraph 1

The Commission shall adopt delegated acts in accordance with Article 94 concerning measures in respect of exemptions (c) and (i), to clarifying when an activity is to be considered as ancillary to the main business on a group level and of limited importance as well as for determining when an activity is provided in an incidental manner.

2012/05/15
Committee: ECON

Proposal for a directive
Article 2 – paragraph 3 – subparagraph 2

The criteria for determining whether an activity is ancillary to the main business shall take into account at least the following elements: – the extent to which the activity is objectively measurable as reducing risks directly related to the commercial activity or treasury financing activity, – the capital employed for carrying out the activity.deleted

2012/05/15
Committee: ECON

Proposal for a directive
Article 5 – paragraph 2

2. By way of derogation from paragraph 1, Member States shall allow any market operator to operate an MTF ~~or an OTF~~, subject to the prior verification of their compliance with the provisions of this Chapter.

2012/05/15
Committee: ECON

Proposal for a directive
Article 9 – paragraph 1 – point c – subparagraph 3

Where the market operator that seeks authorisation to operate an MTF ~~or an OTF~~ and the persons that effectively direct the business of the MTF ~~or the OTF~~ are the same as the members of the management body of the regulated market, those persons shall be deemed to comply with the requirements laid down in the first subparagraph.

2012/05/15
Committee: ECON

Proposal for a directive
Article 17 – paragraph 2

2. An investment firm that engages in algorithmic trading shall at least annually provide to its home Competent Authority 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~~n investment firm shall, at the request of a competent authority, submit further information about its algorithmic trading and the systems used for that trading.

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – title

Trading process and finalisation of transactions in an MTF ~~and an OTF~~

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 1

1. Member States shall require that investment firms or market operators operating an MTF ~~or an OTF~~, in addition to meeting the requirements laid down in Article 16, establish transparent and non- discretionary rules and procedures for fair and orderly trading and establish objective and non-discretionary criteria for the efficient execution of orders. They shall have arrangements for the sound management of the technical operations of the facility, including the establishment of effective contingency arrangements to cope with risks of systems disruption.

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 2 – subparagraph 1

2. Member States shall require that investment firms or market operators operating an MTF ~~or an OTF~~ establish transparent rules regarding the criteria for determining the financial instruments that can be traded under its systems.

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 2 – subparagraph 2

Member States shall require that, where applicable, investment firms or market operators operating an MTF ~~or an OTF~~ provide, or are satisfied that there is access to, sufficient publicly available information to enable its users to form an investment judgement, taking into account both the nature of the users and the types of instruments traded.

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 3

3. Member States shall require that investment firms or market operators operating an MTF ~~or an OTF~~ establish, publish and maintain transparent rules, based on objective criteria~~, governing access to its facility~~.

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 4

4. Member States shall require that investment firms or market operators operating an MTF ~~or an OTF~~ clearly inform its users of their respective responsibilities for the settlement of the transactions executed in that facility. Member States shall require that investment firms or market operators operating an MTF ~~or an OTF~~ have put in place the necessary arrangements to facilitate the efficient settlement of the transactions concluded under the systems of the MTF ~~or an OTF~~.

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 5

5. Where a transferable security, which has been admitted to trading on a regulated market, is also traded on an MTF ~~or an OTF~~ without the consent of the issuer, the issuer shall not be subject to any obligation relating to initial, ongoing or ad hoc financial disclosure with regard to that MTF ~~or an OTF~~ .

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 6

6. Member States shall require that any investment firm or market operator operating an MTF ~~or an OTF~~ comply immediately with any instruction from its competent authority pursuant to Article 72(1) to suspend or remove a financial instrument from trading.

2012/05/15
Committee: ECON

Proposal for a directive
Article 18 – paragraph 8

8. Member States shall require investment firms and market operators operating an MTF ~~or an OTF~~ to provide the competent authority with a detailed description of the functioning of the MTF ~~or OTF~~. Every authorisation to an investment firm or market operator as an MTF and an OTF shall be notified to ESMA. ESMA shall establish a list of all MTFs ~~and OTFs~~ in the Union. The list shall contain information on the services an MTF ~~or an OTF~~ provides and entail the unique code identifying the MTF ~~and the OTF~~ for use in reports in accordance with Article 23 and Articles 5 and 9 of Regulation (EU) No …/… [MiFIR]. It shall be updated on a regular basis. ESMA shall publish and keep up-to-date that list on its website.

2012/05/15
Committee: ECON

Proposal for a directive
Article 20

~~[…]~~Article deleted

2012/05/15
Committee: ECON

Proposal for a directive
Article 23 – paragraph 2

2. WThe~~re organisational or administrative~~ arrangements mad~~e by the~~opted by investment firm in accordance with Article 16(3) to manage conflicts of interest are not sufficient to ensure, with reasonable confidence, that risks of damage to client interests will be prevented, the investment firm shall clearly disclose the general nature and/or sources of conflictss for assessing, paying, rewarding or promoting the persons mentioned in paragraph (1) should not incentivise them to act at any time in a manner that would not comply with the best interest of their clients. In particular, these arrangements should not incentivise any person including themselves, their managers, employees and tied agents, or any person directly ofr in~~terest to the client before undertaking business on its behalf~~directly linked to them by control to recommend a specific financial instrument or a specific category of financial instruments to their clients.

2012/05/15
Committee: ECON

Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 1

– the investment firm and its services; when investment advice is provided, information shall specify whether ~~the advice is provided on an independent basis and whether~~ it is based on a broad or on a more restricted analysis of the market and shall indicate whether the investment firm will provide the client with the on- going periodical assessment of the suitability of the financial instruments recommended to clients,

2012/05/15
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 – point i

(i) shall assess a sufficiently large number of financial instruments available on the market. The financial instruments should be diversified with regard to their type and issuers or product providers and should not be limited to financial instruments issued or provided binform the client whether and to what extent it has accepted or received fees, commissions or any 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 clients. Fees, commissions or any 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 clients shall be deducted in all from the fees, commissions or any monetary ben~~tities having clos~~efits paid by the cli~~nks~~ent with regards to the investment ~~firm,~~advice

2012/05/15
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 – point ii

(ii) shall not ~~accept or re~~perceive fees, commissions or any 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 clients, that are in excess of the remuneration due to be paid by the client in relation to its investment advice.

2012/05/15
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 – point ii a (new)

(ii a) shall not perceive excessive fees, commissions or any monetary benefits, from the portfolio turnover of its client.

2012/05/15
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 – point ii b (new)

(ii b) shall receive any fees, commissions or any monetary benefits from any third party or a person acting on behalf of a third party on an ongoing basis only to the extent that during the same period of time it provides an ongoing periodical assessment of the financial instruments recommended. Such an ongoing assessment shall include, at least, the application of a warning mechanism for products which behaviour diverges from what might have been anticipated in normal circumstance or which gain probabilities are greatly altered from what might have been anticipated.

2012/05/15
Committee: ECON

Proposal for a directive
Article 24 – paragraph 5 a (new)

5 a. ESMA shall develop draft regulatory technical standards to determine acceptable ratios of portfolio turnover and induced compensation. ESMA shall submit those draft regulatory technical standards to the Commission by 31 December 2014. 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 1095/2012.

2012/05/15
Committee: ECON

Proposal for a directive
Article 24 – paragraph 7 – subparagraph 2

ESMA, in cooperation with EBA and EIOPA, through the Joint Committee, shall develop by [] at the latest, and update periodically, guidelines for the assessment and the supervision of cross- selling practices indicating, in particular, situations in which cross-selling practices are not compliant with obligations in paragraph 1.

2012/05/15
Committee: ECON

Proposal for a directive
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;~~deleted

2012/05/15
Committee: ECON

Proposal for a directive
Article 25 – paragraph 4

4. TWhen the investment ~~firm shall establish a record that includes the document or documents agreed between the firm and the client that set out the rights and obligations of the parties, and the other terms on which the~~service relates to an investment advice in relation to a complex product as mentioned in paragraph 3. a) which has been subscribed by a client, the investment firm wishall provide ~~services to the client. The rights and duties of the parties to the contract may be incorporated by reference to other documents or legal texts~~the client with an ongoing periodical assessment of the appropriateness or suitability of such financial instrument.

2012/05/15
Committee: ECON

Proposal for a directive
Article 27 – paragraph 4 – subparagraph 3

Member States shall require that, where the order execution policy provides for the possibility that client orders may be executed outside a regulated market~~, MTF~~ or OMTF, the investment firm shall, in particular, inform its clients about this possibility. Member States shall require that investment firms obtain the prior express consent of their clients before proceeding to execute their orders outside a regulated market ~~MTF or OTF~~ or an MTF. Investment firms may obtain this consent either in the form of a general agreement or in respect of individual transactions.

2012/05/15
Committee: ECON

Proposal for a directive
Article 31 – title

Monitoring of compliance with the rules of the MTF ~~or the OTF~~ and with other legal obligations

2012/05/15
Committee: ECON

Proposal for a directive
Article 31 – paragraph 1

1. Member States shall require that investment firms and market operators operating an MTF ~~or OTF~~ establish and maintain effective arrangements and procedures, relevant to the MTF ~~or OTF~~, for the regular monitoring of the compliance by its users or clients with their rules. Investment firms and market operators operating an MTF ~~or an OTF~~ shall monitor the transactions undertaken by their users or clients under their systems in order to identify breaches of those rules, disorderly trading conditions or conduct that may involve market abuse.

2012/05/15
Committee: ECON

Proposal for a directive
Article 31 – paragraph 2

2. Member States shall require investment firms and market operators operating an MTF ~~or an OTF~~ to report significant breaches of its rules or disorderly trading conditions or conduct that may involve market abuse to the competent authority. Member States shall also require investment firms and market operators operating an MTF ~~or an OTF~~ to supply the relevant information without delay to the authority competent for the investigation and prosecution of market abuse and to provide full assistance to the latter in investigating and prosecuting market abuse occurring on or through its systems.

2012/05/15
Committee: ECON

Proposal for a directive
Article 32 – paragraph 1

1. Member States shall require that an investment firm or a market operator operating an MTF that suspends or removes from trading a financial instrument makes public this decision, communicates it to regulated markets, other MTFs ~~and OTFs~~ trading the same financial instrument and communicates relevant information to the competent authority. The competent authority shall inform the competent authorities of the other Member States. Member States shall require that other regulated markets, MTFs ~~and OTFs~~ trading the same financial instrument shall also suspend or remove that financial instrument from trading where the suspension or removal is due to the non- disclosure of information about the issuer or financial instrument except where this could cause significant damage to the investors' interests or the orderly functioning of the market. Member States shall require the other regulated markets, MTFs ~~and OTFs~~ to communicate their decision to their competent authority and all regulated markets, MTFs ~~and OTFs~~ trading the same financial instrument, including an explanation if the decision was not to suspend or remove the financial instrument from trading.

2012/05/15
Committee: ECON

Proposal for a directive
Article 33

~~[…]~~Article deleted

2012/05/15
Committee: ECON

Proposal for a directive
Article 34 – title

Cooperation and exchange of information for MTFs ~~and OTFs~~

2012/05/15
Committee: ECON

Proposal for a directive
Article 34 – paragraph 1 – introductory part

1. Member States shall require that an investment firm or a market operator operating an MTF ~~or an OTF~~ immediately informs investment firms and market operators of other MTFs~~, OTFs~~ and regulated markets of:

2012/05/15
Committee: ECON

Proposal for a directive
Article 35 – paragraph 7

7. Member States shall require that where a financial instrument of an issuer is admitted to trading on one SME growth market, the financial instrument may also be traded on another SME growth market but only with~~out~~ the explicit consent of the issuer. In such a case however, the issuer shall not be subject to any obligation relating to corporate governance or initial, ongoing or ad hoc disclosure with regard to the latter SME market.

2012/05/15
Committee: ECON

Proposal for a directive
Article 39 – paragraph 1 – subparagraph 2

Member States shall require that access of those investment firms to such facilities be subject to the same non-discriminatory, transparent and objective criteria as apply to local participants. Member States shall not restrict the use of those facilities to the clearing and settlement of transactions in financial instruments undertaken on a regulated market or MTF ~~or OTF~~ in their territory.

2012/05/15
Committee: ECON

Proposal for a directive
Article 39 – paragraph 2 – subparagraph 2

This assessment of the competent authority of the regulated market shall be without prejudice to the competencies of the ~~national~~relevant central banks as overseers of settlement systems or other supervisory authorities on such systems. The competent authority shall take into account the oversight/supervision already exercised by those institutions in order to avoid undue duplication of control.

2012/05/15
Committee: ECON

Proposal for a directive
Article 40 – paragraph 2 – subparagraph 2

In order to avoid undue duplication of control, the competent authority shall take into account the oversight and supervision of the clearing and settlement system already exercised by the ~~national~~relevant central banks as overseers of clearing and settlement systems or by other supervisory authorities with a competence in such systems.

2012/05/15
Committee: ECON

Proposal for a directive
Chapter 4

~~[...]~~Chapter deleted

2012/05/15
Committee: ECON

Proposal for a directive
Article 53 – paragraph 1 – subparagraph 2

Member States shall require that an operator of a regulated market that suspends or removes from trading a financial instrument makes public this decision , communicates it to other regulated markets~~, MTFs~~ and OMTFs trading the same financial instrument and communicates relevant information to the competent authority. The competent authority shall inform the competent authorities of the other Member States of this . Member States shall require that other regulated markets~~, MTFs~~ and OMTFs trading the same financial instrument also suspend or remove that financial instrument from trading where the suspension or removal is due to the non- disclosure of information about the issuer or financial instrument except for cases where this could cause significant damage to the investors' interests or the orderly functioning of the market. Member States shall require the other regulated markets~~, MTFs~~ and OMTFs to communicate their decision to their competent authority and all regulated markets~~, MTFs~~ and OMTFs trading the same financial instrument, including an explanation where it was decided not to suspend or remove the financial instrument from trading.

2012/05/15
Committee: ECON

Proposal for a directive
Article 53 – paragraph 2

2. A competent authority which requests the suspension or removal of a financial instrument from trading on one or more regulated markets ~~MTFs~~ or OMTFs shall immediately make public its decision and inform ESMA and the competent authorities of the other Member States. Save where it is likely to cause significant damage to the investors' interests or the orderly functioning of the internal market, the competent authorities of the other Member States shall request the suspension or removal of that financial instrument from trading on the regulated markets~~, MTFs~~ and OMTFs that operate under their supervision.

2012/05/15
Committee: ECON

Proposal for a directive
Article 54 – paragraph 1 – introductory part

1. Member States shall require that, in relation to a financial instrument, an operator of a regulated market immediately informs operators of other regulated markets~~, MTFs~~ and OMTFs of:

2012/05/15
Committee: ECON

Proposal for a directive
Article 56 – paragraph 2 – subparagraph 1 a (new)

When the operations of a regulated market or an MTF that offers trading on a financial instrument that was first admitted to trading on a regulated market in a different Member State, have become of substantial importance in the trading activity of that financial instrument, the competent authority of that MTF or regulated market shall establish proportionate but effective cooperation arrangements with the competent authority of the regulated market where the financial instrument was first admitted to trading.

2012/05/15
Committee: ECON

Proposal for a directive
Article 57 – paragraph 2 – subparagraph 2

In order to avoid undue duplication of control, the competent authority shall take into account the oversight/supervision of the clearing and settlement system already exercised by the ~~national~~relevant central banks as overseers of clearing and settlement systems or by other supervisory authorities with competence in relation to such systems.

2012/05/15
Committee: ECON

Proposal for a directive
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 contracts which any given ~~market members or participants~~person can enter into over a specified period of time, or alternative arrangements with equivalent effect such as position management with automatic review thresholds , to be imposed in order to:

2012/05/15
Committee: ECON

Proposal for a directive
Article 59 – paragraph 1 – subparagraph 2

The limits or arrangements shall be determined by the competent authority of the regulated market and MTF. They 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~~such persons make of the contracts admitted to trading. They shall specify clear quantitative thresholds such as the maximum number of contracts a person or persons can enter into, taking account of the characteristics of the under~~lying commodity market, including patterns of production, consumption and transportation to~~ivatives market and the underlying commodity market.

2012/05/15
Committee: ECON

Proposal for a directive
Article 59 – paragraph 1 – subparagraph 2 a (new)

Member States shall ensure that similar limits or arrangements apply to commodity derivatives not admitted to trading or traded on a regulated market or MTF no later than [X] years after the entry into force of the above limits and arrangements, at which time the relevant competent authority shall assume responsibility for applying all such limits and arrangements.

2012/05/15
Committee: ECON

Proposal for a directive
Article 59 – paragraph 2

2. ~~Regulated markets, MTF and OTFs shall inform their competent authority of the details of the limits or arrangements.~~ The competent authority shall communicate the same information to ESMA which shall publish and maintain on its website a database with summaries of the limits or arrangements in force.

2012/05/15
Committee: ECON

Proposal for a directive
Article 59 – paragraph 3

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 94 to determine the limits or alternative arrangements on the number of contracts which any person can enter into over a specified period of time and the necessary equivalent effects of the alternative arrangements established in accordance with paragraph 1, as well as the conditions for exemptions. The limits or alternative arrangements shall take account of the conditions referred to in paragraph 1 and the limits that have been set by ~~regulated markets, MTFs and OTFs~~the competent authority. The limits or alternative arrangements determined in the delegated acts shall also take precedence over any measures imposed by competent authorities pursuant to Article 72(1) paragraph (g) of this Directive.

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – introductory part

Member States shall ensure that regulated markets~~, MTFs,~~ and OMTFs which admit to trading or trade commodity derivatives or emission allowances or derivatives thereof:

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – point a

(a) make public a weekly report with the aggregate positions held by the different categories of ~~trader~~persons for the different financial instruments traded on their platforms in accordance with paragraph 3;

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – point b

(b) provide on a daily basis the competent authority with a complete breakdown of the positions of a~~ny or all market members or participants, including any~~ll positions heold ~~on behalf of their clients, upon request~~ers at the close of the preceding trading day.

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 1 – subparagraph 2

The obligation laid down in point (a) shall only apply when both the number of ~~tra~~position holders' and their open positions in a given financial instrument exceed minimum thresholds.

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 2

2. In order to enable the publication and reporting mentioned in point (a) of paragraph 1, Member States shall require ~~members and participants of~~all persons holding a position in a relevant financial instrument admitted to trading or traded on a regulated markets, or MTF~~s and OTFs~~ to report to the respective trading venue the details of their positions ~~in real-time, including any positions held on behalf of their clients.~~ at the end of each trading day, as well as during the trading day at defined intervals where appropriate.

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 3 – subparagraph 1 – introductory part

~~The members, participants and their cli~~Persons holding a position in a relevant financial instruments shall be classified ~~by the regulated market, MTF or OTF as traders~~ according to the nature of their main business, taking account of any applicable authorisation, as either:

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 3 – subparagraph 2

The reports mentioned in point (a) of paragraph 1 should specify the number of long and short positions by category of ~~tra~~position holder, changes thereto since the previous report, percent of total short and long open interest represented by each category, and the number of ~~tra~~position holders in each category.

2012/05/15
Committee: ECON

Proposal for a directive
Article 60 – paragraph 5 – subparagraph 1

The Commission shall be empowered to adopt delegated acts in accordance with Article 94 concerning measures to specify the thresholds mentioned in the last subparagraph of paragraph 1 and to refine the categories of ~~members, participants or client~~position holders mentioned in paragraph 3.

2012/05/15
Committee: ECON

Proposal for a directive
Article 61 – paragraph 2

2. By way of derogation from paragraph 1, Member States shall allow any market operator to operate the data reporting services of an APA~~, a CTP~~ and an ARM, subject to the prior verification of their compliance with the provisions of this Title. Such a service shall be included in their authorisation.

2012/05/15
Committee: ECON

Proposal for a directive
Article 65 – paragraph 1 – subparagraph 3

Where a market operator seeks authorisation to operate an APA~~, a CTP~~ or an ARM and the members of the management body of the APA~~, the CTP~~ or the ARM are the same as the members of the management body of the regulated market, those persons are deemed to comply with the requirement laid down in the first subparagraph.

2012/05/15
Committee: ECON

Proposal for a directive
Article 65 a (new)

Article 65 a Establishment of a European Consolidated Tape 1. A single European Consolidated Tape shall be established to consolidate all data on transactions in equities and equity-like instruments admitted to trading on a regulated market or which are traded on a regulated market or an MTF. 2. The European Consolidated Tape shall be governed by a single EU entity, along requirements determined by the European Commission through delegated acts. The delegated acts shall also describe the procedure for designation of this entity by public tender made by the European Commission. 3. The European Consolidated Tape shall be extended to non-equity financial instruments, in particular to bonds, at least (2) years after this Directive has come into force.

2012/05/15
Committee: ECON

Proposal for a directive
Article 67 – paragraph 3

3. The home Member State shall require the CTP to ensure that the data provided is consolidated from at least the regulated markets, MTFs~~, OTFs~~ and APAs and for the financial instruments specified by delegated acts under paragraph 8(c).

2012/05/15
Committee: ECON

Proposal for a directive
Article 75 – paragraph 1 – point k

(k) a MTF ~~or an OTF~~ failing to establish rules, procedures and arrangements or failing to comply with instructions in accordance with the national provisions implementing Articles 18, 19 and 20;

2012/05/15
Committee: ECON

Proposal for a directive
Article 83 – paragraph 2

2. When, taking into account the situation of the securities markets in the host Member State, the operations of a regulated market ~~an MTF,~~ or an OMTF that has established arrangements in a host Member State have become of substantial importance for the functioning of the securities markets and the protection of the investors in that host Member State, the home and host competent authorities of the regulated market shall establish proportionate cooperation arrangements.

2012/05/15
Committee: ECON

Proposal for a directive
Article 90 – paragraph 3 – subparagraph 1

Where the competent authority of the host Member State of a regulated market, or an MTF ~~or OTF~~ has clear and demonstrable grounds for believing that such regulated market~~, MTF~~ or OMTF is in breach of the obligations arising from the provisions adopted pursuant to this Directive, it shall refer those findings to the competent authority of the home Member State of the regulated market or the MTF ~~or OTF~~ .

2012/05/15
Committee: ECON

Proposal for a directive
Article 91 – title

Cooperation and exchange of information with ESMA within the European System of Financial Supervision (ESFS), and with the European System of Central Banks (ESCB)

2012/05/15
Committee: ECON

Proposal for a directive
Article 91 – paragraph -1 (new)

-1. Competent authorities, as parties to the ESFS, shall cooperate with trust and full mutual respect, in particular when ensuring the flow of appropriate and reliable information between them and other parties to the ESFS in accordance with the principle of sincere cooperation pursuant to Article 4(3) of the Treaty on European Union.

2012/05/15
Committee: ECON

Proposal for a directive
Article 91 – paragraph 2

2. The competent authorities shall, without delay, provide ESMA with all information necessary to carry out its duties under this Directive and in accordance with Article 35 of Regulation (EU) No 1095/2010 and, where appropriate, provide the ESCB central banks with all information relevant for the performance of their respective tasks.

2012/05/15
Committee: ECON

Proposal for a directive
Article 96 – paragraph 1 – point a

~~(a) the functioning of organised trading facilities, taking into account supervisory experiences acquired by competent authorities, the number of OTFs authorised in the EU and their market share;~~deleted

2012/05/15
Committee: ECON

Proposal for a directive
Annex 1 – Section A – point 10

~~(10) Operation of Organised Trading Facilities.~~deleted

2012/05/15
Committee: ECON

Proposal for a directive
Annex 1 – Section C – point 6

(6) Options, futures, swaps, and any other derivative contract relating to commodities that can be physically settled provided that they are traded on a regulated market ~~, OTF,~~ or an MTF;

2012/05/15
Committee: ECON

Proposal for a directive
Annex 1 – Section C – point 7

(7) Options, futures, swaps, forwards and any other derivative contracts relating to commodities, that can be physically settled not otherwise mentioned in C.6 and not being for commercial purposes, which have the characteristics of other derivative financial instruments~~, having regards to whether, inter alia, they are cleared and settled through recognised clearing houses or are subject to regular margin calls~~;

2012/05/15
Committee: ECON

Proposal for a directive
Annex 1 – Section C – point 10

(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments~~, having regard to whether, inter alia, they are traded on a regulated market , OTF, or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls~~.

2012/05/15
Committee: ECON

Proposal for a directive
Annex 1 – Section D – point 2

~~(2) Operating a consolidated tape provider;~~deleted

2012/05/15
Committee: ECON