BETA


2016/0034(COD) Markets in financial instruments; market abuse; securities settlement in the EU and central securities depositories: certain dates

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead ECON FERBER Markus (icon: PPE PPE) DODDS Anneliese (icon: S&D S&D), SWINBURNE Kay (icon: ECR ECR), VAN NIEUWENHUIZEN Cora (icon: ALDE ALDE), DE MASI Fabio (icon: GUE/NGL GUE/NGL), GIEGOLD Sven (icon: Verts/ALE Verts/ALE), KAPPEL Barbara (icon: ENF ENF)
Committee Opinion DEVE
Committee Opinion ITRE
Committee Opinion JURI
Lead committee dossier:
Legal Basis:
TFEU 114

Events

2016/07/14
   EC - Commission response to text adopted in plenary
Documents
2016/06/30
   Final act published in Official Journal
Details

PURPOSE: to put back by one year the time limit for transposition and application of rules on markets in financial instruments (MIFID II package).

LEGISLATIVE ACT: Regulation (EU) 2016/1033 of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories

CONTENT: this Regulation amends Regulation (EU) No 600/2014 (‘MiFIR’) on markets in financial instruments in order to put back the date of entry into application of the Regulation, following difficulties encountered by the European Securities and Markets Authority (‘ESMA’) and national competent authorities, and stakeholders in technical implementation.

The MiFIR Regulation, like Directive 2014/65/EU (MiFID II), ought to be applicable 30 months after entry into force, i.e., 3 January 2017. However, ESMA has informed the Commission that neither it nor the national competent authorities will be in a position to ensure the application of the MiFID II from 3 January 2017. This situation is due to the severe difficulties encountered in completing the data collection infrastructures necessary for Miffed II.

In order to ensure legal certainty and avoid potential market disruption, the amending Regulation defers by 12 months the date by which the Member States need to apply MiFIR to 3 January 2018 . The dates for reports and review are set back accordingly.

The new Regulation also includes amendments regarding executions on own account, package transactions, and alignment with the EU Regulation on securities financing transactions, and the date of application of certain provisions in the Regulation on market abuse.

ENTRY INTO FORCE: 1.7.2016.

2016/06/23
   CSL - Final act signed
2016/06/22
   CSL - Draft final act
Documents
2016/06/22
   EP - End of procedure in Parliament
2016/06/17
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2016/06/17
   CSL - Council Meeting
2016/06/07
   EP - Results of vote in Parliament
2016/06/07
   EP - Debate in Parliament
2016/06/07
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 504 votes to 157, with 9 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories as regards certain dates.

Parliament’s position, adopted at first reading following the ordinary legislative procedure, amended the Commission proposal as follows:

Securities-financing operations : it is considered that securities financing transactions, as defined in Regulation (EU) 2015/2365 of the European Parliament and of the Council, do not contribute to the price discovery process and that it would be appropriate that Title II (Transparency for trading venues) and Title III (Transparency for systematic internalisers and investment firms trading over-the-counter) of Regulation (EU) No 600/2014 not apply to those transactions.

Pre-trade transparency requirements for trading venues : Parliament introduced a new amendment stipulating that market operators and investment firms operating a trading venue shall make public current bid and offer prices and the depth of trading interests at those prices which are advertised through their systems for bonds, and structured finance products, emission allowances, derivatives traded on a trading venue and package orders.

Package transactions : with the amendments, Members stipulated that it is therefore appropriate to specify for the purpose of Regulation (EU) No 600/2014 the specific circumstances in which pre-trade transparency requirements should not apply to orders relating to such package transactions, nor to any individual component of such orders.

In order to support these amendments, it is proposed to include a new recital stating that investment firms often execute, on their own account or on behalf of clients, transactions in derivatives and other financial instruments or assets that comprise a number of interlinked, contingent trades.

The text stated that such package transactions enable investment firms and their clients to better manage their risks, with the price of each component of the package transaction reflecting the overall risk profile of the package rather than the prevailing market price of each component. Package transactions can take various forms, such as exchange for physicals, trading strategies executed on trading venues, or bespoke package transactions, and it is important to take those specificities into account when calibrating the applicable transparency regime.

Role of the European Securities and Markets Authority : ESMA shall develop draft regulatory technical standards to establish a methodology for determining those package orders for which there is a liquid market. ESMA shall submit those draft regulatory technical standards to the Commission by 28 February 2017. Power is delegated to the Commission to adopt the regulatory technical standards.

Documents
2016/05/25
   ESC - Economic and Social Committee: opinion, report
Documents
2016/05/24
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
Documents
2016/05/04
   IT_SENATE - Contribution
Documents
2016/04/29
   ECB - European Central Bank: opinion, guideline, report
2016/04/22
   PT_PARLIAMENT - Contribution
Documents
2016/04/11
   EP - Committee report tabled for plenary, 1st reading/single reading
Details

The Committee on Economic and Monetary Affairs adopted the report by Markus FERBER (EPP, DE) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories as regards certain dates.

The committee recommended that the European Parliament’s position adopted at first reading following the ordinary legislative procedure should amend the Commission proposal as follows:

Through their amendments, Members sought to specify that, for the purpose of Regulation (EU) No 600/2014, the specific circumstances in which pre-trade transparency should not apply to package transactions, nor to any individual component of such transactions.

Supporting these amendments, Members proposed to add a recital stipulating that investment firms often execute, on their own account or on behalf of their clients, transactions in derivatives and other financial instruments or assets that comprise a number of interlinked, contingent trades.

Such package transactions enable investment firms and their clients to better manage their risks, with the price of each component of the package transaction reflecting the overall risk profile of the package rather than the prevailing market price of each component. Package transactions can take various forms, such as exchange for physicals, trading strategies executed on trading venues, or bespoke package transactions, and it is important to take those specificities into account when calibrating the applicable transparency regime.

Documents
2016/04/07
   EP - Vote in committee, 1st reading/single reading
2016/04/07
   EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2016/03/02
   EP - Amendments tabled in committee
Documents
2016/02/25
   EP - Committee referral announced in Parliament, 1st reading/single reading
2016/02/16
   EP - Committee draft report
Documents
2016/02/10
   EC - Legislative proposal published
Details

PURPOSE: to extend the date of entry into application of both instruments that are comprised in MIFID II on markets in financial instruments.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: Directive 2014/65/EU (‘MiFID’) together with Regulation (EU) No 600/2014 (‘MiFIR’) was adopted in the wake of the financial crisis. MiFID and MiFIR, collectively referred to as MiFID II , covers securities markets, investment intermediaries and trading venues. The new framework reinforces and replaces the current MiFID framework ( Directive 2004/39/EC ).

Member States need to transpose the Directive by 3 July 2016. Both MiFID and MiFIR are scheduled to apply as of 3 January 2017 .

During the legislative process, the very high level of complexity of the MiFID II package and the need for a significant number of implementing measures were recognised. To this end, a period of 30 months was foreseen between the adoption and the entry into application, instead of the usual 18-24 months.

Despite this unusually long period, ESMA has made clear to the Commission that the technical implementing challenges are of such magnitude that essential data infrastructures will not be in place in time for 3 January 2017. This is a result of significant challenges in collecting the data that is necessary for the operation of the MiFID II rules.

The absence of data has ramifications across multiple areas of MIFID II. As regards market regulation, it is clear that without the foundation of reference data (instrument ID) and the additional data infrastructures for transparency calculations and position reporting in place, it will not be possible to apply the majority of the market rules.

In order to ensure legal certainty and avoid potential market disruption, urgent action is therefore needed to adjust the date of entry into application for MiFID II

Changing the date of applicability of MiFID II does however have consequences for the applicability of other legislation, in particular Regulation (EU) 596/2014 ('MAR' – market abuse) and Regulation (EU) 909/2014 ('CSDR' - central securities depositories regulation).

CONTENT: the purpose of the draft proposal amending Regulation (EU) No 600/2014 on markets in financial instruments is to extend the entry into application of both instruments that are comprised in the MIFID II package as a result of the technical implementation challenges met by the European Securities and Markets Authority ('ESMA'), national competent authorities ('NCAs') and stakeholders.

In order to enable ESMA, NCAs and stakeholders to complete the operational implementation, the Commission considered it appropriate to defer the date of application of Regulation (EU) No 600/2014 by 12 months until 3 January 2018 . Reports and reviews should be deferred accordingly.

The Commission stated that an extension of one year should provide sufficient and reasonable time for ESMA, NCAs and operators to put in place the infrastructure for data collection, reporting and the transparency threshold calculations.

In order to ensure that references in Regulation (EU) 596/2014 to organised trading facilities, small and medium-sized enterprises’ ('SME') growth markets, emission allowances or auctioned products based thereon do not apply until the date of application of Regulation (EU) No 600/2014 and Directive 2014/65/EU, Article 39(4) of Regulation (EU) 596/2014 stating that references to them are read as references to Directive 2004/39/EC should be adjusted taking into account the extension of the date of application of those acts.

In order to ensure that Directive 2004/39/EC is referenced in Regulation (EU) 909/2014 until the extended date of application of Regulation (EU) No 600/2014 and Directive 2014/65/EU and that the transitional provisions for MTFs applying for registration as SME growth markets under Regulation (EU) 909/2014 are maintained so as to provide sufficient time for MTFs to apply for such registration under Directive 2014/65/EU, it is proposed that Regulation (EU) 909/2014 should be amended.

2016/02/04
   EP - FERBER Markus (PPE) appointed as rapporteur in ECON

Documents

Activities

Votes

A8-0125/2016 - Markus Ferber - Résolution législative

2016/06/07 Outcome: +: 504, -: 157, 0: 9
DE PL RO IT BG ES GB CZ BE HU PT AT FR SK NL HR DK LT FI SI LV MT SE LU EE IE CY EL
Total
90
46
27
65
17
45
52
20
20
17
20
18
71
11
25
11
13
9
11
8
6
6
18
6
6
9
5
18
icon: PPE PPE
195

Denmark PPE

For (1)

1

Finland PPE

2

Luxembourg PPE

3

Estonia PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
172

Netherlands S&D

3

Croatia S&D

2

Finland S&D

1

Slovenia S&D

For (1)

1

Latvia S&D

1

Malta S&D

3

Luxembourg S&D

For (1)

1

Estonia S&D

For (1)

1

Ireland S&D

For (1)

1

Cyprus S&D

2
icon: ALDE ALDE
66

Romania ALDE

2

United Kingdom ALDE

1

Austria ALDE

For (1)

1

Croatia ALDE

2

Slovenia ALDE

For (1)

1

Luxembourg ALDE

For (1)

1

Estonia ALDE

3

Ireland ALDE

For (1)

1
icon: ECR ECR
58

Romania ECR

For (1)

1

Italy ECR

2

Bulgaria ECR

2

Czechia ECR

2

Slovakia ECR

2

Netherlands ECR

2

Croatia ECR

For (1)

1
2

Latvia ECR

For (1)

1

Greece ECR

Against (1)

1
icon: NI NI
14

Germany NI

Against (1)

2

Poland NI

Abstain (1)

1

United Kingdom NI

For (1)

1

Hungary NI

2

France NI

3
icon: ENF ENF
38

Germany ENF

Abstain (1)

1

Poland ENF

For (1)

Abstain (1)

2

Romania ENF

1

United Kingdom ENF

Against (1)

1

Belgium ENF

Against (1)

1

Netherlands ENF

4
icon: EFDD EFDD
34

Germany EFDD

Abstain (1)

1

Poland EFDD

1

Czechia EFDD

For (1)

1

France EFDD

1

Lithuania EFDD

For (1)

1

Sweden EFDD

2
icon: Verts/ALE Verts/ALE
45

United Kingdom Verts/ALE

5

Belgium Verts/ALE

2

Hungary Verts/ALE

2

Austria Verts/ALE

3

France Verts/ALE

4

Netherlands Verts/ALE

2

Croatia Verts/ALE

Against (1)

1

Denmark Verts/ALE

Against (1)

1

Lithuania Verts/ALE

Against (1)

1

Finland Verts/ALE

Against (1)

1

Slovenia Verts/ALE

Against (1)

1

Luxembourg Verts/ALE

Against (1)

1

Estonia Verts/ALE

Against (1)

1
icon: GUE/NGL GUE/NGL
48

Italy GUE/NGL

3

United Kingdom GUE/NGL

Against (1)

1

Czechia GUE/NGL

2

Netherlands GUE/NGL

2

Denmark GUE/NGL

Against (1)

1

Finland GUE/NGL

Against (1)

1

Sweden GUE/NGL

Against (1)

1

Ireland GUE/NGL

3

Cyprus GUE/NGL

2
AmendmentsDossier
3 2016/0034(COD)
2016/03/02 ECON 3 amendments...
source: 578.559

History

(these mark the time of scraping, not the official date of the change)

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  • date: 2016-06-07T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20160607&type=CRE type: Debate in Parliament title: Debate in Parliament url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0244 type: Decision by Parliament, 1st reading/single reading title: T8-0244/2016 body: EP type: Debate in Parliament
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  • date: 2016-06-22T00:00:00 body: EP type: End of procedure in Parliament
  • date: 2016-06-23T00:00:00 body: CSL type: Final act signed
  • date: 2016-06-30T00:00:00 type: Final act published in Official Journal
commission
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docs
  • date: 2016-02-16T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE576.963 title: PE576.963 type: Committee draft report body: EP
  • date: 2016-03-02T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=COMPARL&mode=XML&language=EN&reference=PE578.559 title: PE578.559 type: Amendments tabled in committee body: EP
  • date: 2016-04-29T00:00:00 docs: url: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52016AB0027:EN:NOT title: CON/2016/0027 url: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2016:223:TOC title: OJ C 223 21.06.2016, p. 0003 type: European Central Bank: opinion, guideline, report body: ECB
  • date: 2016-05-25T00:00:00 docs: url: https://dm.eesc.europa.eu/EESCDocumentSearch/Pages/redresults.aspx?k=(documenttype:AC)(documentnumber:1921)(documentyear:2016)(documentlanguage:EN) title: CES1921/2016 type: Economic and Social Committee: opinion, report body: ESC
  • date: 2016-06-22T00:00:00 docs: url: http://register.consilium.europa.eu/content/out?lang=EN&typ=SET&i=ADV&RESULTSET=1&DOC_ID=[%n4]%2F16&DOC_LANCD=EN&ROWSPP=25&NRROWS=500&ORDERBY=DOC_DATE+DESC title: 00024/2016/LEX type: Draft final act body: CSL
  • date: 2016-07-14T00:00:00 docs: url: /oeil/spdoc.do?i=27047&j=0&l=en title: SP(2016)487 type: Commission response to text adopted in plenary
  • date: 2016-05-04T00:00:00 docs: url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2016)0057 title: COM(2016)0057 type: Contribution body: IT_SENATE
  • date: 2016-04-22T00:00:00 docs: url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2016)0057 title: COM(2016)0057 type: Contribution body: PT_PARLIAMENT
events
  • date: 2016-02-10T00:00:00 type: Legislative proposal published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0057/COM_COM(2016)0057_EN.pdf title: COM(2016)0057 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2016&nu_doc=0057 title: EUR-Lex summary: PURPOSE: to extend the date of entry into application of both instruments that are comprised in MIFID II on markets in financial instruments. PROPOSED ACT: Regulation of the European Parliament and of the Council. ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council. BACKGROUND: Directive 2014/65/EU (‘MiFID’) together with Regulation (EU) No 600/2014 (‘MiFIR’) was adopted in the wake of the financial crisis. MiFID and MiFIR, collectively referred to as MiFID II , covers securities markets, investment intermediaries and trading venues. The new framework reinforces and replaces the current MiFID framework ( Directive 2004/39/EC ). Member States need to transpose the Directive by 3 July 2016. Both MiFID and MiFIR are scheduled to apply as of 3 January 2017 . During the legislative process, the very high level of complexity of the MiFID II package and the need for a significant number of implementing measures were recognised. To this end, a period of 30 months was foreseen between the adoption and the entry into application, instead of the usual 18-24 months. Despite this unusually long period, ESMA has made clear to the Commission that the technical implementing challenges are of such magnitude that essential data infrastructures will not be in place in time for 3 January 2017. This is a result of significant challenges in collecting the data that is necessary for the operation of the MiFID II rules. The absence of data has ramifications across multiple areas of MIFID II. As regards market regulation, it is clear that without the foundation of reference data (instrument ID) and the additional data infrastructures for transparency calculations and position reporting in place, it will not be possible to apply the majority of the market rules. In order to ensure legal certainty and avoid potential market disruption, urgent action is therefore needed to adjust the date of entry into application for MiFID II Changing the date of applicability of MiFID II does however have consequences for the applicability of other legislation, in particular Regulation (EU) 596/2014 ('MAR' – market abuse) and Regulation (EU) 909/2014 ('CSDR' - central securities depositories regulation). CONTENT: the purpose of the draft proposal amending Regulation (EU) No 600/2014 on markets in financial instruments is to extend the entry into application of both instruments that are comprised in the MIFID II package as a result of the technical implementation challenges met by the European Securities and Markets Authority ('ESMA'), national competent authorities ('NCAs') and stakeholders. In order to enable ESMA, NCAs and stakeholders to complete the operational implementation, the Commission considered it appropriate to defer the date of application of Regulation (EU) No 600/2014 by 12 months until 3 January 2018 . Reports and reviews should be deferred accordingly. The Commission stated that an extension of one year should provide sufficient and reasonable time for ESMA, NCAs and operators to put in place the infrastructure for data collection, reporting and the transparency threshold calculations. In order to ensure that references in Regulation (EU) 596/2014 to organised trading facilities, small and medium-sized enterprises’ ('SME') growth markets, emission allowances or auctioned products based thereon do not apply until the date of application of Regulation (EU) No 600/2014 and Directive 2014/65/EU, Article 39(4) of Regulation (EU) 596/2014 stating that references to them are read as references to Directive 2004/39/EC should be adjusted taking into account the extension of the date of application of those acts. In order to ensure that Directive 2004/39/EC is referenced in Regulation (EU) 909/2014 until the extended date of application of Regulation (EU) No 600/2014 and Directive 2014/65/EU and that the transitional provisions for MTFs applying for registration as SME growth markets under Regulation (EU) 909/2014 are maintained so as to provide sufficient time for MTFs to apply for such registration under Directive 2014/65/EU, it is proposed that Regulation (EU) 909/2014 should be amended.
  • date: 2016-02-25T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
  • date: 2016-04-07T00:00:00 type: Vote in committee, 1st reading/single reading body: EP
  • date: 2016-04-07T00:00:00 type: Committee decision to open interinstitutional negotiations with report adopted in committee body: EP
  • date: 2016-04-11T00:00:00 type: Committee report tabled for plenary, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A8-2016-0125&language=EN title: A8-0125/2016 summary: The Committee on Economic and Monetary Affairs adopted the report by Markus FERBER (EPP, DE) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories as regards certain dates. The committee recommended that the European Parliament’s position adopted at first reading following the ordinary legislative procedure should amend the Commission proposal as follows: Through their amendments, Members sought to specify that, for the purpose of Regulation (EU) No 600/2014, the specific circumstances in which pre-trade transparency should not apply to package transactions, nor to any individual component of such transactions. Supporting these amendments, Members proposed to add a recital stipulating that investment firms often execute, on their own account or on behalf of their clients, transactions in derivatives and other financial instruments or assets that comprise a number of interlinked, contingent trades. Such package transactions enable investment firms and their clients to better manage their risks, with the price of each component of the package transaction reflecting the overall risk profile of the package rather than the prevailing market price of each component. Package transactions can take various forms, such as exchange for physicals, trading strategies executed on trading venues, or bespoke package transactions, and it is important to take those specificities into account when calibrating the applicable transparency regime.
  • date: 2016-05-24T00:00:00 type: Approval in committee of the text agreed at 1st reading interinstitutional negotiations body: EP docs: url: http://www.europarl.europa.eu/RegData/commissions/econ/inag/2016/05-18/ECON_AG(2016)604829_EN.pdf title: PE604.829
  • date: 2016-06-07T00:00:00 type: Results of vote in Parliament body: EP docs: url: https://oeil.secure.europarl.europa.eu/oeil/popups/sda.do?id=27047&l=en title: Results of vote in Parliament
  • date: 2016-06-07T00:00:00 type: Debate in Parliament body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?secondRef=TOC&language=EN&reference=20160607&type=CRE title: Debate in Parliament
  • date: 2016-06-07T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0244 title: T8-0244/2016 summary: The European Parliament adopted by 504 votes to 157, with 9 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories as regards certain dates. Parliament’s position, adopted at first reading following the ordinary legislative procedure, amended the Commission proposal as follows: Securities-financing operations : it is considered that securities financing transactions, as defined in Regulation (EU) 2015/2365 of the European Parliament and of the Council, do not contribute to the price discovery process and that it would be appropriate that Title II (Transparency for trading venues) and Title III (Transparency for systematic internalisers and investment firms trading over-the-counter) of Regulation (EU) No 600/2014 not apply to those transactions. Pre-trade transparency requirements for trading venues : Parliament introduced a new amendment stipulating that market operators and investment firms operating a trading venue shall make public current bid and offer prices and the depth of trading interests at those prices which are advertised through their systems for bonds, and structured finance products, emission allowances, derivatives traded on a trading venue and package orders. Package transactions : with the amendments, Members stipulated that it is therefore appropriate to specify for the purpose of Regulation (EU) No 600/2014 the specific circumstances in which pre-trade transparency requirements should not apply to orders relating to such package transactions, nor to any individual component of such orders. In order to support these amendments, it is proposed to include a new recital stating that investment firms often execute, on their own account or on behalf of clients, transactions in derivatives and other financial instruments or assets that comprise a number of interlinked, contingent trades. The text stated that such package transactions enable investment firms and their clients to better manage their risks, with the price of each component of the package transaction reflecting the overall risk profile of the package rather than the prevailing market price of each component. Package transactions can take various forms, such as exchange for physicals, trading strategies executed on trading venues, or bespoke package transactions, and it is important to take those specificities into account when calibrating the applicable transparency regime. Role of the European Securities and Markets Authority : ESMA shall develop draft regulatory technical standards to establish a methodology for determining those package orders for which there is a liquid market. ESMA shall submit those draft regulatory technical standards to the Commission by 28 February 2017. Power is delegated to the Commission to adopt the regulatory technical standards.
  • date: 2016-06-17T00:00:00 type: Act adopted by Council after Parliament's 1st reading body: EP/CSL
  • date: 2016-06-22T00:00:00 type: End of procedure in Parliament body: EP
  • date: 2016-06-23T00:00:00 type: Final act signed body: CSL
  • date: 2016-06-30T00:00:00 type: Final act published in Official Journal summary: PURPOSE: to put back by one year the time limit for transposition and application of rules on markets in financial instruments (MIFID II package). LEGISLATIVE ACT: Regulation (EU) 2016/1033 of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories CONTENT: this Regulation amends Regulation (EU) No 600/2014 (‘MiFIR’) on markets in financial instruments in order to put back the date of entry into application of the Regulation, following difficulties encountered by the European Securities and Markets Authority (‘ESMA’) and national competent authorities, and stakeholders in technical implementation. The MiFIR Regulation, like Directive 2014/65/EU (MiFID II), ought to be applicable 30 months after entry into force, i.e., 3 January 2017. However, ESMA has informed the Commission that neither it nor the national competent authorities will be in a position to ensure the application of the MiFID II from 3 January 2017. This situation is due to the severe difficulties encountered in completing the data collection infrastructures necessary for Miffed II. In order to ensure legal certainty and avoid potential market disruption, the amending Regulation defers by 12 months the date by which the Member States need to apply MiFIR to 3 January 2018 . The dates for reports and review are set back accordingly. The new Regulation also includes amendments regarding executions on own account, package transactions, and alignment with the EU Regulation on securities financing transactions, and the date of application of certain provisions in the Regulation on market abuse. ENTRY INTO FORCE: 1.7.2016. docs: title: Regulation 2016/1033 url: https://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!CELEXnumdoc&lg=EN&numdoc=32016R1033 title: OJ L 175 30.06.2016, p. 0001 url: https://eur-lex.europa.eu/legal-content/FR/TXT/?uri=OJ:L:2016:175:TOC
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  • 2.50.03 Securities and financial markets, stock exchange, CIUTS, investments
  • 2.50.08 Financial services, financial reporting and auditing
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  • Amending Regulation (EU) No 596/2014
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  • The European Parliament adopted by 504 votes to 157, with 9 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories as regards certain dates.

    Parliament’s position, adopted at first reading following the ordinary legislative procedure, amended the Commission proposal as follows:

    Securities-financing operations: it is considered that securities financing transactions, as defined in Regulation (EU) 2015/2365 of the European Parliament and of the Council, do not contribute to the price discovery process and that it would be appropriate that Title II (Transparency for trading venues) and Title III (Transparency for systematic internalisers and investment firms trading over-the-counter) of Regulation (EU) No 600/2014 not apply to those transactions.

    Pre-trade transparency requirements for trading venues: Parliament introduced a new amendment stipulating that market operators and investment firms operating a trading venue shall make public current bid and offer prices and the depth of trading interests at those prices which are advertised through their systems for bonds, and structured finance products, emission allowances, derivatives traded on a trading venue and package orders.

    Package transactions: with the amendments, Members stipulated that it is therefore appropriate to specify for the purpose of Regulation (EU) No 600/2014 the specific circumstances in which pre-trade transparency requirements should not apply to orders relating to such package transactions, nor to any individual component of such orders. 

    In order to support these amendments, it is proposed to include a new recital stating that investment firms often execute, on their own account or on behalf of clients, transactions in derivatives and other financial instruments or assets that comprise a number of interlinked, contingent trades.

    The text stated that such package transactions enable investment firms and their clients to better manage their risks, with the price of each component of the package transaction reflecting the overall risk profile of the package rather than the prevailing market price of each component. Package transactions can take various forms, such as exchange for physicals, trading strategies executed on trading venues, or bespoke package transactions, and it is important to take those specificities into account when calibrating the applicable transparency regime.

    Role of the European Securities and Markets Authority: ESMA shall develop draft regulatory technical standards to establish a methodology for determining those package orders for which there is a liquid market. ESMA shall submit those draft regulatory technical standards to the Commission by 28 February 2017. Power is delegated to the Commission to adopt the regulatory technical standards.

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  • url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2016-0244 type: Decision by Parliament, 1st reading/single reading title: T8-0244/2016
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  • The Committee on Economic and Monetary Affairs adopted the report by Markus FERBER (EPP, DE) on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 600/2014 on markets in financial instruments, Regulation (EU) No 596/2014 on market abuse and Regulation (EU) No 909/2014 on improving securities settlement in the European Union and on central securities depositories as regards certain dates.

    The committee recommended that the European Parliament’s position adopted at first reading following the ordinary legislative procedure should amend the Commission proposal as follows:

    Through their amendments, Members sought to specify that, for the purpose of Regulation (EU) No 600/2014, the specific circumstances in which pre-trade transparency should not apply to package transactions, nor to any individual component of such transactions.

    Supporting these amendments, Members proposed to add a recital stipulating that investment firms often execute, on their own account or on behalf of their clients, transactions in derivatives and other financial instruments or assets that comprise a number of interlinked, contingent trades.

    Such package transactions enable investment firms and their clients to better manage their risks, with the price of each component of the package transaction reflecting the overall risk profile of the package rather than the prevailing market price of each component. Package transactions can take various forms, such as exchange for physicals, trading strategies executed on trading venues, or bespoke package transactions, and it is important to take those specificities into account when calibrating the applicable transparency regime.

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KAPPEL Barbara
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  • PURPOSE: to extend the date of entry into application of both instruments that are comprised in MIFID II on markets in financial instruments.

    PROPOSED ACT: Regulation of the European Parliament and of the Council.

    ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

    BACKGROUND: Directive 2014/65/EU (‘MiFID’) together with Regulation (EU) No 600/2014 (‘MiFIR’) was adopted in the wake of the financial crisis. MiFID and MiFIR, collectively referred to as MiFID II, covers securities markets, investment intermediaries and trading venues. The new framework reinforces and replaces the current MiFID framework (Directive 2004/39/EC).

    Member States need to transpose the Directive by 3 July 2016. Both MiFID and MiFIR are scheduled to apply as of 3 January 2017.

    During the legislative process, the very high level of complexity of the MiFID II package and the need for a significant number of implementing measures were recognised. To this end, a period of 30 months was foreseen between the adoption and the entry into application, instead of the usual 18-24 months.

    Despite this unusually long period, ESMA has made clear to the Commission that the technical implementing challenges are of such magnitude that essential data infrastructures will not be in place in time for 3 January 2017. This is a result of significant challenges in collecting the data that is necessary for the operation of the MiFID II rules.

    The absence of data has ramifications across multiple areas of MIFID II. As regards market regulation, it is clear that without the foundation of reference data (instrument ID) and the additional data infrastructures for transparency calculations and position reporting in place, it will not be possible to apply the majority of the market rules.

    In order to ensure legal certainty and avoid potential market disruption, urgent action is therefore needed to adjust the date of entry into application for MiFID II

    Changing the date of applicability of MiFID II does however have consequences for the applicability of other legislation, in particular Regulation (EU) 596/2014 ('MAR' – market abuse) and Regulation (EU) 909/2014 ('CSDR' - central securities depositories regulation).

    CONTENT: the purpose of the draft proposal amending Regulation (EU) No 600/2014 on markets in financial instruments is to extend the entry into application of both instruments that are comprised in the MIFID II package as a result of the technical implementation challenges met by the European Securities and Markets Authority ('ESMA'), national competent authorities ('NCAs') and stakeholders.

    In order to enable ESMA, NCAs and stakeholders to complete the operational implementation, the Commission considered it appropriate to defer the date of application of Regulation (EU) No 600/2014 by 12 months until 3 January 2018. Reports and reviews should be deferred accordingly.

    The Commission stated that an extension of one year should provide sufficient and reasonable time for ESMA, NCAs and operators to put in place the infrastructure for data collection, reporting and the transparency threshold calculations.

    In order to ensure that references in Regulation (EU) 596/2014 to organised trading facilities, small and medium-sized enterprises’ ('SME') growth markets, emission allowances or auctioned products based thereon do not apply until the date of application of Regulation (EU) No 600/2014 and Directive 2014/65/EU, Article 39(4) of Regulation (EU) 596/2014 stating that references to them are read as references to Directive 2004/39/EC should be adjusted taking into account the extension of the date of application of those acts.

    In order to ensure that Directive 2004/39/EC is referenced in Regulation (EU) 909/2014 until the extended date of application of Regulation (EU) No 600/2014 and Directive 2014/65/EU and that the transitional provisions for MTFs applying for registration as SME growth markets under Regulation (EU) 909/2014 are maintained so as to provide sufficient time for MTFs to apply for such registration under Directive 2014/65/EU, it is proposed that Regulation (EU) 909/2014 should be amended.

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  • date: 2016-02-10T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2016/0057/COM_COM(2016)0057_EN.pdf celexid: CELEX:52016PC0057:EN type: Legislative proposal published title: COM(2016)0057 type: Legislative proposal published body: EC commission:
  • date: 2016-03-16T00:00:00 body: EP type: Vote scheduled in committee, 1st reading/single reading
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  • body: EP responsible: False committee_full: Development committee: DEVE
  • body: EP shadows: group: S&D name: DODDS Anneliese group: ECR name: SWINBURNE Kay group: ALDE name: VAN NIEUWENHUIZEN Cora group: GUE/NGL name: DE MASI Fabio group: Verts/ALE name: GIEGOLD Sven responsible: True committee: ECON date: 2016-02-04T00:00:00 committee_full: Economic and Monetary Affairs rapporteur: group: EPP name: FERBER Markus
  • body: EP responsible: False committee_full: Industry, Research and Energy committee: ITRE
  • body: EP responsible: False committee_full: Legal Affairs committee: JURI
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