2021/0385(COD) | [ParlTrack]

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of a consolidated tape, optimising the trading obligations and ~~prohibiting receiving payments for forwarding~~regulating the forwarding and execution of client orders (Text with EEA relevance)

Amendment 104 #

Markus FERBER, Stefan BERGER, Ralf SEEKATZ, Andreas SCHWAB

Proposal for a regulation
Title 1

Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 600/2014 as regards enhancing market data transparency, removing obstacles to the emergence of a consolidated tape, optimising the trading obligations and ~~prohibiting receiv~~rules governing payments for forwarding client orders (Text with EEA relevance)

Amendment 105 #

Proposal for a regulation
Recital 4

(4) To date, however, no supervised entity has applied for authorisation to act as a CTP. ESMA has identified three main obstacles that have prevented supervised entities to apply for registration as a CTP33 . First, a lack of clarity as to how the CTP is to procure market data from the various execution venues or from the data reporting service providers concerned. Second, insufficient quality in terms of harmonisation of the data reported by those execution venues to allow for a cost- efficient consolidation. Third, a lack of commercial incentives to apply for authorisation as a CTP. It is therefore necessary to remove those obstacles. Such removal requires, first, that all trading venues and systematic internalisers (‘SIs’) provide CTPs with market data (provision rule). It secondly requires an improvement of the data quality by harmonising the data reports that trading venues and SIs should submit to the CTP. Furthermore, the design of the CTP should ensure that data providers receive a fair remuneration for submitting their data, in particular small trading venues, which business model mostly relies on data selling. Finally, retail investors and academics should be able to have free and unlimited access to the data disclosed by the CTP. __________________ 33 ESMA MiFID II/MiFIR Review Report No. 1 on the development in prices for pre- and post-trade data and on the consolidated tape for equity instruments.

Amendment 106 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL

Proposal for a regulation
Recital 4

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

Amendment 107 #

Proposal for a regulation
Recital 4

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

Amendment 108 #

Proposal for a regulation
Recital 4 a (new)

(4 a) Whereas the current most pressing issue is inflation, especially in energy and food sectors, the review of the Markets in Financial Instruments Directive (MIFID II) and regulation (MiFIR) should focus mainly in tackling market volatility and price speculation in those sectors; whereas the review proposal by the European Commission made in 2021, focused in market availability for investors, is therefore outdated and should be updated in a timely manner;

Amendment 109 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Recital 6

(6) Article 4 of Regulation (EU) No 600/2014 allows competent authorities to waive the pre-trade transparency requirements for market operators and investment firms operating a trading venue who determine their prices by reference to the midpoint price of the primary market or the most relevant market in terms of liquidity. As there is no justification for excluding the smallest orders from a transparent order book and in order to increase pre-trade transparency and thereby reinforce the price formation process, that waiver should be applicable to orders with a size greater than or equal to twice the standard market size. Where the consolidated tape for shares and exchange-traded funds (ETFs) will provide bid and offer prices from which a midpoint can be derived, the reference price waiver should also be available for systems deriving the midpoint price from the consolidated tape.

Amendment 110 #

Proposal for a regulation
Recital 6

(6) Article 4 of Regulation (EU) No 600/2014 allows competent authorities to waive the pre-trade transparency requirements for market operators and investment firms operating a trading venue who determine their prices by reference to the midpoint price of the primary market or the most relevant market in terms of liquidity. As there is no justification for excluding the smallest orders from a transparent order book and in order to increase pre-trade transparency and thereby reinforce the price formation process, that waiver should be applicable to orders with a size ~~greater than or equal to~~of a minimum at twice the standard market size. Further clarifications should be provided by ESMA. Where the consolidated tape for shares and exchange- traded funds (ETFs) will provide bid and offer prices from which a midpoint can be derived, the reference price waiver should also be available for systems deriving the midpoint price from the consolidated tape.

Amendment 111 #

Proposal for a regulation
Recital 7

(7) Dark trading is trading without pre- trade transparency, and includes all trading venues operating under a pre-trade transparency waiver and should also encompass Systematic Internalisers when trading above the minimum size or Frequent Batch Auctions (FBAs). Because trades above the large in scale threshold do not participate in the price formation process and shall be protected against market impact, dark trading shall be restricted to trading venues operating using the reference price waiver laid down in Article 4(1), point (a) of Regulation (EU) No 600/2014 and the negotiated trade waiver laid down in Article 4(a) point (a), point (i) of that Regulation. TCurrently, the use of both waivers is capped by the double volume cap (‘DVC’). The DVC is a mechanism that limits the level of dark trading to a certain proportion of total trading in an equity instrument. The amount of dark trading under both waivers in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the Union. When this threshold is breached, dark trading in that instrument on that venue is suspended. Secondly the amount of dark trading in an equity instrument in the Union may not exceed 8% of total trading in that instrument in the Union. When this threshold is breached all dark trading in that instrument is suspended. The DVC faces certain limitations as it only limits dark trading inside the two waivers it covers. The venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended, until the Union wide threshold is breached. This causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. To simplify the double volume cap while keeping its effectiveness, the new single volume cap should rely solely on ~~the~~an EU-wide threshold~~. That threshold should be lowered to 7 % to compensate for a potential increase of trading under those waivers as~~, not be limited to certain waivers, but capture all price-forming transactions below the large-in-scale threshold and subject to the share trading obligation. The volume cap threshold should be determined by ESMA taking into a cco~~nsequence of abolishing the venue specific threshold.~~ unt the impact of the cap on price formation, liquidity, and end investors’ outcome.

Amendment 112 #

Proposal for a regulation
Recital 7

(7) Dark trading is trading without pre- trade transparency. The double volume cap (DVC)is a mechanism that limits the level of dark trading, using the reference price waiver laid down in Article 4(1), point (a) of Regulation (EU) No 600/2014 and the negotiated trade waiver laid down in Article 4(a) point (a), point (i) of that Regulation~~. The use of both waivers is capped by the double volume cap (‘DVC’). The DVC is a mechanism that limits the level of dark trading~~, to a certain proportion of total trading in an equity instrument. The amount of dark trading under both waivers in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the Union. When this threshold is breached, dark trading under both waivers in that instrument on that venue is suspended. Secondly the amount of dark trading under both waivers in an equity instrument in the Union may not exceed 8% of total trading in that instrument in the Union. When this threshold is breached all dark trading under both waivers in that instrument is suspended. The DVC faces strong limitations as it does not limit trading without pre-trade transparency outside the two waivers it covers. The venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended, until the Union wide threshold is breached. This causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. To simplify the double volume cap while keeping its effectiveness, the new single volume cap should rely solely on the EU-wide threshold. That threshold should be lowered to 7 % to compensate for a potential increase of trading under those waivers as a consequence of abolishing the venue specific thresholdcover non-pre-trade transparent trading, not only under both waivers but also including other non-price forming transactions below the large-in-scale threshold and subject to the share trading obligation. The volume cap threshold should be determined by ESMA. When defining the possible threshold, ESMA should take into account the impact of that measure on price formation, liquidity, and end investors’outcomes.

Amendment 113 #

Proposal for a regulation
Recital 7

(7) Dark trading is trading without pre- trade transparency, using the reference price waiver laid down in Article 4(1), point (a) of Regulation (EU) No 600/2014 and the negotiated trade waiver laid down in Article 4(a) point (a), point (i) of that Regulation. The use of both waivers is capped by the double volume cap (‘DVC’). The DVC is a mechanism that limits the level of dark trading to a certain proportion of total trading in an equity instrument. The amount of dark trading in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the Union. When this threshold is breached, dark trading in that instrument on that venue is suspended. Secondly the amount of dark trading in an equity instrument in the Union may not exceed 8% of total trading in that instrument in the Union. When this threshold is breached all dark trading in that instrument is suspended. The venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended, until the Union wide threshold is breached. This causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. To simplify the double volume cap while keeping its effectiveness, the new single volume cap should rely solely on the EU-wide threshold. That threshold should be lowered to 7 % to compensate for a potential increase of trading under those waivers as a consequence of abolishing the venue specific thresholdIn order to reduce complexity and align the Union with international practices, the cap mechanism should be suspended for at least five years. ESMA, which would be empowered to monitor market conditions and, in particular, the price formation process and the liquidity available on lit venues, should review the suspension at the end of the five year period. At the end of the five-year suspension period, ESMA should in its final report detailing the impact of the suspension on Union markets. On the basis of that report the Commission should consider whether i) to renew the suspension, ii) revert to a cap at 10% of EU-wide trading threshold, or iii) delete the provisions related to the cap mechanism altogether.

Amendment 114 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Recital 7

(7) Dark trading is trading without pre- trade transparency, using the reference price waiver laid down in Article 4(1), point (a) of Regulation (EU) No 600/2014 and the negotiated trade waiver laid down in Article 4(a) point (a), point (i) of that Regulation. The use of both waivers is capped by the double volume cap (‘DVC’). The DVC is a mechanism that limits the level of dark trading to a certain proportion of total trading in an equity instrument. The amount of dark trading in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the Union. When this threshold is breached, dark trading in that instrument on that venue is suspended. Secondly the amount of dark trading in an equity instrument in the Union may not exceed 8% of total trading in that instrument in the Union. When this threshold is breached all dark trading in that instrument is suspended. The venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended, until the Union wide threshold is breached. This causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. To simplify the double volume cap while keeping its effectiveness, the new single volume cap should rely solely on the EU-wide threshold. That threshold should be lowered to 7 % to compensate for a potential increase of trading under those waivers as a consequence of abolishing the venue specific threshold. In addition, in order to further enhance transparency, the new single volume cap should be expanded to include other non-transparent trades that do not contribute to the price formation process to ensure all forms of dark trading fall within the cap.

Amendment 115 #

Proposal for a regulation
Recital 7

(7) Dark trading is trading without pre- trade transparency, using the reference price waiver laid down in Article 4(1), point (a) of Regulation (EU) No 600/2014 and the negotiated trade waiver laid down in Article 4(a) point (a), point (i) of that Regulation. The use of both waivers is capped by the double volume cap (‘DVC’). The DVC is a mechanism that limits the level of dark trading to a certain proportion of total trading in an equity instrument. The amount of dark trading in an equity instrument on an individual venue may not exceed 4% of total trading in that instrument in the Union. When this threshold is breached, dark trading in that instrument on that venue is suspended. Secondly the amount of dark trading in an equity instrument in the Union may not exceed 8% of total trading in that instrument in the Union. When this threshold is breached all dark trading in that instrument is suspended. The venue specific threshold leaves room for continued use of those waivers on other platforms on which trading in that equity instrument is not yet suspended, until the Union wide threshold is breached. This causes complexity in terms of monitoring the levels of dark trading and of enforcing the suspension. To simplify the double volume cap while keeping its effectiveness, the new single volume cap should rely solely on the EU-wide threshold. That threshold should be lowered to 7 % to compensate for a potential increase of trading under those waivers as a consequence of abolishing the venue specific threshold. ESMA should be empowered to determine the DVC based on market conditions, the price formation process and liquidity available in the market.

Amendment 116 #

Proposal for a regulation
Recital 7

Amendment 117 #

Proposal for a regulation
Recital 7

Amendment 118 #

Nicola BEER, Engin EROGLU

Proposal for a regulation
Recital 9

(9) To ensure an adequate level of transparency, the price of a non-equity transaction should be published as close to real time as possible ~~and only be delayed until maximally the end of the trading day~~. However, in order not to expose liquidity providers in non-equity instruments to undue risk, it should be possible to mask the price and volumes of very large or illiquid transactions for a ~~short~~longer period of time, which should not ~~be longer than two~~exceed four weeks. The exact calibration of the various buckets corresponding to different time deferrals should be left to ESMA due to the technical expertise required to specify the calibration as well as due to the need to allow for the flexibility to amend the calibration. Those deferrals should be based on the liquidity of the non-equity instrument (using the issuance size as a proxy), the size of the transaction ~~and, for bonds~~(trade size), the credit rating of the non-equity instrument, and it should no longer include the size specific to the instrument concerned nor the large in scale size. In order to simplify the pre- trade transparency regime for bonds and derivatives, the size specific to the instrument should be removed, and the large in scale size should be lowered so that only one threshold remains at an adequate level.

Amendment 119 #

Proposal for a regulation
Recital 9

(9) To ensure an adequate level of transparency, the price and the volume of a non-equity transaction should be published as close to real time as possible and only be delayed until maximally the end -of ~~the~~- second-day trading ~~day~~. However, in order not to expose liquidity providers in non-equity instruments to undue risk, it should be possible to mask volumes of transactions for a short period of time, which should not be longer than ~~two~~four weeks. The exact calibration of the various buckets corresponding to different time deferrals should be left to ESMA due to the technical expertise required to specify the calibration as well as due to the need to allow for the flexibility to amend the calibration. Those deferrals should be based on the liquidity of the non-equity instrument, the size of the transaction and, for bonds, the credit rating and it should no longer include the size specific to the instrument concerned.

Amendment 120 #

Proposal for a regulation
Recital 9

(9) To ensure an adequate level of transparency, the price of a non-equity transaction should be published as close to real time as possible and only be delayed until maximally the end of the trading day. However, in order not to expose liquidity providers in non-equity instruments to undue risk, it should be possible to mask volumes of transactions for a short period of time, which should not be longer than ~~two~~one weeks. The exact calibration of the various buckets corresponding to different time deferrals should be left to ESMA due to the technical expertise required to specify the calibration as well as due to the need to allow for the flexibility to amend the calibration. Those deferrals should be based on the liquidity of the non-equity instrument, the size of the transaction and, for bonds, the credit rating and it should no longer include the size specific to the instrument concerned.

Amendment 121 #

Proposal for a regulation
Recital 10

Amendment 122 #

Proposal for a regulation
Recital 10

(10) Article 13 of Regulation (EU) No 600/2014 requires market operators and investment firms operating a trading venue to make the pre-trade and post-trade information on transactions in financial instruments available to the public on a reasonable commercial basis (‘RCB’), and to ensure non-discriminatory access to that information. That Article has, however, not delivered on its objectives. The information provided by trading venues, APAs and systematic internalisers on a reasonable commercial basis does not enable users to understand market data policies and how the price for market data is set. ESMA issued guidelines explaining how the concept of RCB should be applied. These guidelines should be converted to legal obligations. Due to the high level of detail required to specify RCB and the required flexibility in amending the applicable rules based on the fast changing data landscape, ESMA should be empowered to develop draft regulatory technical standards specifying how RCB should be applied, thereby further strengthening the harmonised and consistent application of Article 13 of Regulation (EU) No 600/2014. Furthermore, the provision to provide market data on the basis of costs of producing and disseminating the market data is moved to the Level 1 text. Such a move would allow to further specify the general principle via Level 2 measures bearing in mind that the market data is a by-product of the trading activity. Additionally, there is added a requirement in the Level 1 text for trading venues, APAs, SIs and CTPs to share information on the actual costs for producing and disseminating market data as well as on the margins included with CAs and ESMA combined with an empowerment of ESMA to develop draft regulatory technical standards specifying the content, format and terminology of suchinformation.Article13 shall be amended to remove references to pricing based on the value generated by the data user. Art. 86 (2) of Delegated Regulation 2017/565 and Art 8 (2) of Delegated Regulation 2017/567. These articles run counter to the objectives of Article 13, as they allow venues to charge for market data proportionate to the value the market data represents to users, thereby pushing up prices regularly and increasing the number of complicated licensing structures which add additional costs to the investor.

Amendment 123 #

Linea SØGAARD-LIDELL

Proposal for a regulation
Recital 10

(10) Article 13 of Regulation (EU) No 600/2014 requires market operators and investment firms operating a trading venue to make the pre-trade and post-trade information on transactions in financial instruments available to the public on a reasonable commercial basis (‘RCB’), and to ensure non-discriminatory access to that information. That Article has, however, not delivered on its objectives. The information provided by trading venues, APAs and systematic internalisers on a reasonable commercial basis does not enable users to understand market data policies and how the price for market data is set. ESMA issued guidelines explaining how the concept of RCB should be applied. These guidelines should be converted to legal obligations. Due to the high level of detail required to specify RCB and the required flexibility in amending the applicable rules based on the fast changing data landscape, ESMA should be empowered to develop draft regulatory technical standards specifying how RCB should be applied, thereby ~~further strengthen~~ensuring ~~the~~a harmonised and consistent application of Article 13 of Regulation (EU) No 600/2014. Furthermore, the provision to provide market data on the basis of costs of producing and disseminating the market data (Article 85 of CDR 2017/565 and Article 7 of CDR 2017/567) is moved to the Level 1 text. Such move would allow to further specify the general principle via Level 2 measures bearing in mind that the market data is a by-product of the trading activity. Additionally, there is added a requirement in the Level 1 text for trading venues, APAs, SIs and CTPs to share information on the actual costs for producing and disseminating market data as well as on the margins included with CAs and ESMA combined with an empowerment of ESMA to develop draft regulatory technical standards specifying the content, format and terminology of such information.

Amendment 124 #

Proposal for a regulation
Recital 11

(11) In order to reinforce the price formation process and to maintain a level playing field between trading venues and systematic internalisers, Article 14 of Regulation (EU) No 600/2014 requires systematic internalisers to make public all quotes in equity instruments placed by that systematic internaliser below the standard market size. Systematic internalisers are free to decide which sizes they quote, as long as they quote at a minimum size of 10% of the standard market size. That possibility, however, has led to very low levels of pre-trade transparency provided by systematic internalisers in equity instruments, and has hampered the achievement of a level playing field. It is therefore necessary to require systematic internalisers to publish firm quotes relating to a minimum of twice the standard marketleads to significant volumes of transactions being traded in the dark, not contributing to the price formation process on the multilateral venues, i.e. the multilateral trading facilities and the regulated markets. This includes also retail investor volumes, since systematic internalisers are allowed to transact any sizes of orders. Retail investors are key to capital markets financing especially for SMEs. Systematic internalisers and dark pools play a role in order to avoid market impact, and this is relevant only for larger transactions. It is therefore necessary to require systematic internalisers to only match orders which are larger in size.

Amendment 125 #

Proposal for a regulation
Recital 11

(11) In order to reinforce the price formation process and to maintain a level playing field between trading venues and systematic internalisers, Article 14 of Regulation (EU) No 600/2014 requires systematic internalisers to make public all quotes in equity instruments placed by that systematic internaliser below the standard market size. Systematic internalisers are free to decide which sizes they quote, as long as they quote at a minimum size of 10% of the standard market size. ~~That possibility, however, has led to very low levels of~~It is necessary to require systematic internalisers to publish firm quotes relating to a minimum size tobe determined by ESMA. The minimum size should be determined by ESMA considering the following objectives: i) increasing pre- trade transparency ~~provided by systematic internalisers in equity instruments, and has hampered the achievement of a level playing field. It is therefore necessary to require systematic internalisers to publish firm~~ of equity instruments for the benefit of end-investors; ii) maintaining a level playing field between trading venues and systematic internalisers; iii) providing end investors with an adequoate~~s relating to a minimum of twice the standard market size~~ choice of trading options; and iv) ensuring that the trading landscape in the Union remains attractive and competitive both domestically and internationally.

Amendment 126 #

Proposal for a regulation
Recital 11

(11) In order to reinforce the price formation process and to maintain a level playing field between trading venues and systematic internalisers, Article 14 of Regulation (EU) No 600/2014 requires systematic internalisers to make public all quotes in equity instruments placed by that systematic internaliser below the standard market size. Systematic internalisers are free to decide which sizes they quote, as long as they quote at a minimum size of 10% of the standard market size. That possibility, however, has led to very low levels of pre-trade transparency provided by systematic internalisers in equity instruments, and has hampered the achievement of a level playing field. It is therefore necessary to require systematic internalisers to publish firm quotes relating to a minimum ~~of twice the standard market size~~size to be determined by ESMA. The minimum size should exceed twice the standard market size, and should be determined by the impact of the measure on price formation, liquidity, and end investors’ outcomes.

Amendment 127 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER, Gilles BOYER

Proposal for a regulation
Recital 11

Amendment 128 #

Proposal for a regulation
Recital 11

Amendment 129 #

Proposal for a regulation
Recital 12

(12) In order to create a level playing field, in addition to the obligation to publish firm quotes relating to a minimum of twice the standard market size, systematic internalisers should also no longer be allowed to match at midpoint below twice the standard market size. It should furthermore be clarified that systematic internalisers should be allowed to match at midpoint in so far as they comply with the tick-size rules in accordance with Article 49 of Directive 2014/65/EU when they trade above twice the standard market size but below the large in-scale threshold. When systematic internalisers trade above a large in-scale threshold, they should continue to be allowed to match at midpoint without complying with the tick-size regime.deleted

Amendment 130 #

Proposal for a regulation
Recital 12

Amendment 131 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Recital 12

Amendment 132 #

Proposal for a regulation
Recital 12

(12) In order to create a level playing field, in addition to the obligation to publish firm quotes relating to a minimum of twice the standard market size, systematic internalisers should ~~also no longer~~not be allowed to match at midpoint below twice the standard market size. It should furthermore be clarified that systematic internalisers should be allowed to match at midpoint in so far as they comply with the tick-size rules in accordance with Article 49 of Directive 2014/65/EU when they trade above twice the standard market size but below the large in-scale threshold. When systematic internalisers trade above a large in-scale threshold, they should continue to be allowed to match at midpoint without complying with the tick- size regime. In order to clarify, ESMA should be empowered to determine the size appropriate for the market conditions.

Amendment 133 #

Proposal for a regulation
Recital 13

(13) Market participants need core market data to be able to make informed investment decisions. Pursuant to the current Article 27h of Regulation (EU) 600/2014, sourcing core market data about certain financial instruments directly from trading venues and APAs requires that consolidated tape providers enter into separate licensing agreements with all those data contributors. That process is burdensome, costly and time consuming. It has been one of the obstacles to consolidated tape providers emerging on a cross market basis. This obstacle should be removed in order to enable consolidated tape providers to obtain the market data and to overcome licencing issues. Trading venues and APAs, or investment firms and systematic internalisers without intervention of APAs (‘market data contributors’) should be required to submit their post-trade market data to consolidated tape providers, and to use harmonised templates respecting high–quality data standards to do so. Only CTPs selected and authorised by ESMA should be able to collect harmonised market data from the individual data sources in accordance with the mandatory contribution rule. To make the market data useful for investors, market data contributors should be required to provide the CTP with market data ~~as close as technically possible to real time~~maximum 15 minutes after the conclusion of transactions.

Amendment 134 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER, Caroline NAGTEGAAL

Proposal for a regulation
Recital 13

(13) Market participants need core market data to be able to make informed investment decisions. Pursuant to the current Article 27h of Regulation (EU) 600/2014, sourcing core market data about certain financial instruments directly from trading venues and APAs requires that consolidated tape providers enter into separate licensing agreements with all those data contributors. That process is burdensome, costly and time consuming. It has been one of the obstacles to consolidated tape providers emerging on a cross market basis. This obstacle should be removed in order to enable consolidated tape providers to obtain the market data and to overcome licencing issues. Trading venues and APAs, or investment firms and systematic internalisers without intervention of APAs (‘market data contributors’) should be required to submit their market data on executed transactions to consolidated tape providers, and to use harmonised templates respecting high– quality data standards to do so. Only CTPs selected and authorised by ESMA should be able to collect harmonised market data from the individual data sources in accordance with the mandatory contribution rule. To make the market data useful for investors, market data contributors should be required to provide the CTP with market data ~~as close as technically possible to real time.~~ no later than one minute after the transaction is executed.

Amendment 135 #

Proposal for a regulation
Recital 13

(13) Market participants need core market data to be able to make informed investment decisions. Pursuant to the current Article 27h of Regulation (EU) 600/2014, sourcing core market data about certain financial instruments directly from trading venues and APAs requires that consolidated tape providers enter into separate licensing agreements with all those data contributors. That process is burdensome, costly and time consuming. It has been one of the obstacles to consolidated tape providers emerging on a cross market basis. This obstacle should be removed in order to enable consolidated tape providers to obtain the market data and to overcome licencing issues. Trading venues and APAs, or investment firms and systematic internalisers without intervention of APAs (‘market data contributors’) should be required to submit their market data to consolidated tape providers, and to use harmonised templates respecting high–quality data standards to do so. Only CTPs selected and authorised by ESMA should be able to collect harmonised market data from the individual data sources in accordance with the mandatory contribution rule. To make the market data useful for investors, market data contributors should be required to provide the CTP with market data ~~as close as technically possible to real time.~~no later than one minute after the transaction

Amendment 136 #

Proposal for a regulation
Recital 13

(13) Market participants ~~need~~benefit from core market data ~~to be able to~~when makeing informed investment decisions. Pursuant to the current Article 27h of Regulation (EU) 600/2014, sourcing core market data about certain financial instruments directly from trading venues and APAs requires that consolidated tape providers enter into separate licensing agreements with all those data contributors. That process is burdensome, costly and time consuming. It has been one of the obstacles to consolidated tape providers emerging on a cross market basis. This obstacle should be removed in order to enable consolidated tape providers to obtain the market data and to overcome licencing issues. Trading venues and APAs, or investment firms and systematic internalisers without intervention of APAs (‘market data contributors’) should be required to submit their market data to consolidated tape providers, and to use harmonised templates respecting high–quality data standards to do so. Only CTPs selected and authorised by ESMA should be able to ~~collect~~receive harmonised market data from the individual data sources in accordance with the mandatory contribution rule. To make the market data useful for investors, market data contributors should be required to provide the CTP with market data ~~as close as technically possible to real tim~~with a delay of one minute.

Amendment 137 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Recital 14

(14) Title II and III of Regulation (EU) 600/2014 require trading venues, APAs, investment firms and systematic internalisers (‘market data contributors’) to publish pre-trade data on financial instruments, including bid and offer prices and post-trade data on transactions, including the price and volume at which a transaction in a specific instrument has been concluded. Market participants are not obliged to use the consolidated core market data provided by the CTP. The requirement to publish those preost-trade ~~and post-trade data~~data with a delay of one minute should therefore remain applicable to enable market participants to access market data. However, to avoid undue burden on market data contributors, it is appropriate to align the requirement for market data contributors to publish data as much as possible with the requirement to contribute data to the CTP.

Amendment 138 #

Proposal for a regulation
Recital 14

(14) Title II and III of Regulation (EU) 600/2014 require trading venues, APAs, investment firms and systematic internalisers (‘market data contributors’) to publish pre-trade data on financial instruments, including bid and offer prices and post-trade data on transactions, including the price and volume at which a transaction in a specific instrument has been concluded. Market participants are not obliged to use the consolidated core market data provided by the CTP. The requirement to publish those pre-trade and post-trade data should therefore remain applicable to enable market participants to access market data. However, to avoid undue burden on market data contributors, it is appropriate to align the requirement for market data contributors to publish data as much as possible with the requirement to contribute data to the CTP, which will require only post-trade data.

Amendment 139 #

Proposal for a regulation
Recital 15

Amendment 140 #

Proposal for a regulation
Recital 15

(15) Due to the disparate quality of market data, it is difficult for market participants to compare those data, which devoids data consolidation of much added- value. It is of the utmost importance for the proper functioning of the transparency regime set out in Title II and III of Regulation (EU) 600/2014 and for the consolidation of data by consolidated tape providers that market data are of high quality. It is therefore appropriate to require that those market data comply with high quality standards in terms of both substance and ~~format~~the consistency of the content of the market data. It should be possible to ~~change~~envisage adaptions to the substance and the ~~format of the data within a short time~~consistency of the content of market data to allow for changing market practices and insights. A reasonable implementation period should nevertheless be provided for in consultation with the contributors to the consolidated tape. Therefore the requirements for the quality of data should specified by the Commission in a Delegated Act and should take into account the advice of a dedicated consultative group, composed of experts from the industry and from public authorities. Experts from all the EU exchanges contributing the most market data will be permanent members of the dedicated consultative group. In the event that consensus between data users and data contributors cannot be reached, the insights this group formulates should be reviewed by independent experts that do not hold a position at a stakeholder firm, nor have a stake in the matter (e.g. without commercial) ties to a stakeholder firm, nor any other potential conflict of interest).

Amendment 141 #

Proposal for a regulation
Recital 17

(17) Article 23 of Regulation (EU) No 600/2014 requires that the majority of trading in shares takes place on trading venues or systematic internalisers (‘share trading obligation’). This requirement does not apply to trades in shares which are non- systematic, ad hoc or irregular and infrequent. It is not clear when this exemption applies. ESMA therefore clarified this by making a distinction between shares on the basis of their International Securities Identification Number (ISIN). Pursuant to that distinction, only shares with an EEA ISIN are subject to the share trading obligation. That approach provides clarity to market participants trading in shares. It is therefore appropriate to incorporate ESMA’s current practice in Regulation (EU) No 600/2014, while simultaneously removing the exemption for trades in shares which are non-systematic, ad-hoc or irregular and infrequent. In order to provide market participants with certainty on which instruments fall under the share-trading obligation, ESMA should be empowered to publish and maintain a list containing all the shares subject to that obligation.

Amendment 142 #

Proposal for a regulation
Recital 17

(17) Article 23 of Regulation (EU) No 600/2014 requires that the majority of trading in shares takes place on trading venues or systematic internalisers (‘share trading obligation’). This requirement does not apply to trades in shares which are non- systematic, ad hoc or irregular and infrequent. ~~It is not~~ESMA clear ~~when this exemption applies. ESMA therefore clarified this~~ified the scope of application of Article 23 of Regulation (EU) No 600/2014 by making a distinction between shares on the basis of their International Securities Identification Number (ISIN). Pursuant to that distinction, only shares with an EEA ISIN are subject to the share trading obligation. That approach provides clarity to market participants trading in shares. It is therefore appropriate to incorporate ESMA’s current practice in Regulation (EU) No 600/2014, while simultaneously ~~remov~~confirming the exemption for trades in shares which are non-systematic, ad-hoc or irregular and infrequent. In order to provide market participants with certainty on which instruments fall under the share-trading obligation, ESMA should be empowered to publish ~~and maintain a list containing all the shares subject to that obligation~~, on the Financial Instruments Reference Data System (FIRDS) publicly accessible on its website, the shares with an EEA ISIN whose trades take place on a regulated market, MTF, systematic internaliser and the dates and times of the trades.

Amendment 143 #

Proposal for a regulation
Recital 19 a (new)

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

Amendment 144 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Recital 20

Amendment 145 #

Proposal for a regulation
Recital 20

Amendment 146 #

Gilles BOYER, Stéphanie YON-COURTIN, Olivier CHASTEL

Proposal for a regulation
Recital 20

Amendment 147 #

Proposal for a regulation
Recital 20

Amendment 148 #

Proposal for a regulation
Recital 20

(20) Competition among consolidated tape providers ensures that the consolidated tape is provided in the most efficient way and under the best conditions for users. However, no entity has, up until now, applied to act as a consolidated tape provider. It is therefore considered appropriate to empower ESMA to periodically organise a competitive selection procedure to select a single entity which is able to provide the consolidated tape for each specified asset class. Taking into account the novelty of the proposed scheme, ESMA should only mandate the provision of post-trade transparency data with a 1 minute delay period for the first selection procedure that it runs in relation to shares. At least 18 months before the launch of the second selection procedure, ESMA should submit a report to the Commission assessing whether there is market demand for extending the data contributed to the tape to pre-trade data. On the basis of such a report, the Commission should be empowered, by way of a delegated act, to further specify the depth of pre-trade data to the tape. the provision of the post-trade consolidated tape in real-time or in a close to real-time period, taking into account a reliable evaluation of the provisions of this Regulation. The Commission shall also conduct a detailed impact assessment of the consequences of the consolidated tape on exchange's revenues. The application of a potential real-time post-trade tape may be evaluated if ESMA is able to demonstrate, through an exhaustive impact assessment, that a consolidated tape containing real-time post-trade data will not have significant impact on the exchange's revenues. On the basis of such a report, the Commission should be empowered, by way of a delegated act, to further specify the timeline for the provision of a real-time or close to real-time post-trade data to the consolidated tape where appropriate.

Amendment 149 #

Proposal for a regulation
Recital 20

Amendment 150 #

Proposal for a regulation
Recital 20

(20) Competition among consolidated tape providers ensures that the consolidated tape is provided in the most efficient way and under the best conditions for users. However, no entity has, up until now, applied to act as a consolidated tape provider. It is therefore considered appropriate to empower ESMA to periodically organise a competitive selection procedure to select a single entity which is able to provide the consolidated tape for each specified asset class. ~~Taking into~~ESMA should prioritise the selection and authorisation of ac count the novelty of the proposed scheme, ESMA should only mandate the provision of post-trade transparency data for the first selection procedure that it runs in relation to shares. At least 18 months before the launch of the second selection procedure, ESMA should submit a report to the Commission assessing whether there is market demand for extending the data contributed to the tape to pre-trade data. On the basis of such a report, the Commission should be empowered, by waynsolidated tape provider for equities and ETFs, followed by bonds and finally by derivatives. The selection processes for each CTP should be staggered at regular intervals, with each selection process starting no later than six months after the initiation of the preceding one. Each successive selection process shall start within 6 months regardless of any delays experienced by the preceding process. For shares/ETFs only, the CTP should comprise pre-trade data related to the best bid and offer. ESMA should also require the CTP for shares to be capable ofr a ~~delegated act, to further specify the depth of~~t least to have the technical capabilities to consolidate and display pre- trade data ~~to the tape~~related to the first five layers of order books.

Amendment 151 #

Proposal for a regulation
Recital 20

(20) Competition among consolidated tape providers ensures that the consolidated tape is provided in the most efficient way and under the best conditions for users. However, no entity has, up until now, applied to act as a consolidated tape provider. It is therefore considered appropriate to empower ESMA to periodically organise, for each of the asset class for which a tape will be established, a competitive selection procedure ~~to select~~awarding to a single entity ~~which is able to provide the~~the operation of a consolidated tape for ~~each specified~~a given asset class. Taking into account the novelty of the proposed scheme, ESMA should only mandate the provision of post-trade transparency data for the first selection procedure that it runs in relation to shares. At least 18 months before the launch of the second selection procedure, ESMA should submit a report to the Commission ~~assessing whether there is market demand for extending the data contributed to the tape to pre-trade data~~on possible improvements to the one minute delayed tape. On the basis of such a report, the Commission should be empowered, by way of a delegated act, to further specify ~~the depth of pre-trade data to the tape~~measures for improving the post trade data tape, including on the delay of market data contributed to the consolidated tape provider.

Amendment 152 #

Proposal for a regulation
Recital 20

Amendment 153 #

Engin EROGLU

Proposal for a regulation
Recital 20

(20) Competition among consolidated tape providers ensures that the consolidated tape is provided in the most efficient way and under the best conditions for users. However, no entity has, up until now, applied to act as a consolidated tape provider. It is therefore considered appropriate to empower ESMA to periodically organise a competitive ~~selection~~ procedure to select and authorize a single entity which is able to provide the consolidated tape ~~for each~~per specified asset class. Taking into account the novelty of the proposed scheme, ESMA should ~~only mandate the provision of post-trade transparency data for the first selection procedure that it runs in relation to shares. At least~~prioritize the selection and authorization of the provider for the consolidated tape for bonds. After 182 months before the launch of the second selection procedure, ESMA should submit a report to the Commission assessing whether there is market demand for extending the data contributed to the tape to pre-trade data. On the basis of such a report, the Commission should be empowered, by way of a delegated act, to further specify the depth of pre-trade data to the tapeof operation of the CTP for bonds, ESMA shall provide the Commission with a motivated opinion on the effectiveness of the CTP for bond. Based on this opinion, in case the CTP for bonds has satisfied the political objectives, ESMA shall start the selection and authorization procedures for the providers for the other relevant asset classes in the following order: Shares, ETFs and OTC derivatives.

Amendment 154 #

Proposal for a regulation
Recital 21

Amendment 155 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU

Proposal for a regulation
Recital 21

Amendment 156 #

Proposal for a regulation
Recital 21

Amendment 157 #

Proposal for a regulation
Recital 21

Amendment 158 #

Proposal for a regulation
Recital 21

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

Amendment 159 #

Proposal for a regulation
Recital 22

(22) There is an objective difference between a venue of primary admission and other trading venues that serve as secondary trading markets. A venue of primary admission ~~admit~~brings companies to the public markets, playing a crucial role in ~~the~~getting shares listed, the longer-term life of a share, and for the share’s liquidity. This is particularly true in the case of shares listed on smaller regulated markets which remain typically traded mostly on the venue of primary admission. When the pre-trade transparent trading of a certain share takes place exclusively or predominantly on the venue of primary admission, such smaller venue plays a more important role in the price formation for that share. The core market data a smaller regulated markecapitalise companies grounded in local economies and local supply chains and which remain typically traded mostly on the venue of primary admission. In smaller regulated markets, and associated SME growth markets, the level of concentration of trading in shares, for which they are also the venue of primary admission, means that their relative contribution to the fragmentation of trading in the Union is less significant compared to that of larger regulated markets. The average daily trading volume of shares in the smaller regulated markets is relatively low, often accounting for less than 1 % of the average daily trading volume of the Union as a whole. Finally, smaller regulated markets, and associated SME growth markets, that are not owned by larger groups of exchange operators are, on average, less diversified and more dependent con~~tributes to the consolidated tape therefore plays a more determining role in the price formation for the shares this venue admits to trading. A preferential treatment in~~ data revenues, and the inclusion of their pretrade data on the consolidated tape for shares could deprive them of their most important source of income. Therefore, as an interim measure, given the lower levels of fragmentation of smaller markets, their relative share of the overall trading landscape and legitimate concerns about the viability of their business, an exclusion from the mandatory inclusion of their re~~venue participation scheme is therefore considered appropriate to allow these smaller exchange~~al time pre-trade data in the consolidated tape output should be considered appropriate to allow smaller regulated markets that are not owned by larger groups of exchange operators to maintain their local admissions and so as to safeguard a rich and vibrant ecosystem, integrated into the wider EU market, and in line with the objectives of the Capital Markets Union. From a procedural perspective, the first exclusion criterion should be market share; if the market share at any future point exceeds the threshold set out in this Regulation, fragmentation criteria should apply as alternative exemption criteria. Notwithstanding the mandatory inclusion exemption as regards real time pretrade, smaller regulated markets that wish to be included in the consolidated view provided by the CT should be able to opt in into the mandatory inclusion scheme by notifying ESMA and the CTP of their intent. Nevertheless, the development of a Consolidated Tape should aim to achieve fully inclusive and mandatory participation and eventually no requirement for any exemptions in order to achieve the full benefits of an integrated capital markets union.

Amendment 160 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Recital 22

(22) There is an objective difference between a venue of primary admission and other trading venues that serve as secondary trading markets. A venue of primary admission admits companies to the public markets, playing a crucial role in the life of a share and for the share’s liquidity. This is particularly true in the case of shares listed on smaller regulated markets which remain typically traded mostly on the venue of primary admission. When the pre-trade transparent trading of a certain share takes place exclusively or predominantly on the venue of primary admission, such smaller venue plays a more important role in the price formation for that share. The core market data a smaller regulated market contributes to the consolidated tape therefore plays a more determining role in the price formation for the shares this venue admits to trading. A preferential treatment inIn smaller regulated markets the level of concentration of trading in shares, for which they are also the venue of primary admission, means that their relative contribution to the fragmentation of trading in the Union is less significant compared to that of larger regulated markets. The average daily trading volume of shares in the smaller regulated markets is relatively low, often accounting for less than 1 % of the average daily trading volume of the Union as a whole. Finally, smaller regulated markets that are not owned by larger groups of exchange operators are, on average, less diversified and more dependent on data revenues, and the inclusion of their pre- trade data on the consolidated tape for shares could deprive them of their most important source of income. Therefore, given the lower levels of fragmentation of smaller markets, their relative share of the overall trading landscape and legitimate concerns about the viability of their business, an exclusion from the mandatory inclusion of their re~~venue participation scheme is therefore considered appropriate to allow these smaller exchange~~al time pre-trade data in the consolidated tape output should be considered appropriate to allow smaller regulated markets that are not owned by larger groups of exchange operators to maintain their local admissions and safeguard a rich and vibrant ecosystem in line with the objectives of the Capital Markets Union. From a procedural perspective, the first exclusion criterion should be market share; if the market share at any future point exceeds the threshold set out in this Regulation, fragmentation criteria should apply as alternative exemption criteria. Notwithstanding the mandatory inclusion exemption, smaller regulated markets that wish to be included in the consolidated view provided by the CT should be able to opt in into the mandatory inclusion scheme by notifying ESMA and the CTP of their intent.

Amendment 161 #

Proposal for a regulation
Recital 22

Amendment 162 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Recital 22

Amendment 163 #

Proposal for a regulation
Recital 23

(23) Small regulated markets are regulated markets which admit shares of issuers for which trading in the secondary market tends to be less liquid than the trading of shares admitted to trading on larger regulated markets. In order to avoid that lower trading volumes (or nominal values) penalise smaller exchanges in the revenue participation scheme designed for the consolidated tape for shares, data from trades in these less liquid shares should attract a higher remuneration than their notional trading value would indicate. Whether a shareThe desired outcome would be to provide end investors with a truly consolidated overview of the trading opportunities available in the Union and to increase the overall domestic and international attractiveness of the Union capital markets, isn l~~ess liquid should be determined~~ine with the objectives onf the ~~basis of the proportion of pre-trade transparent liquidity displayed by the regulated market that admits the less liquid share,~~ Capital Markets Union, and to include small regulated markets in the picture crelat~~ive to the average daily trading turnover in that shar~~ed by the consolidated tape.

Amendment 164 #

Proposal for a regulation
Recital 23

(23) Small regulated markets and SME Growth Markets are regulated markets which admit shares of issuers for which trading in the secondary market tends to be less liquid than the trading of shares admitted to trading on larger regulated markets. In order to avoid that lower trading volumes (or nominal values) penalise smaller exchanges and SME Growth Markets in the revenue participation scheme designed for the consolidated tape for shares, data from trades in these less liquid shares should attract a higher remuneration than their notional trading value would indicate. Whether a share is less liquid should be determined on the basis of the proportion of pre-trade transparent liquidity displayed by the regulated market that admits the less liquid share, relative to the average daily trading turnover in that share.

Amendment 165 #

Proposal for a regulation
Recital 23 a (new)

(23 a) The desired outcome would be to provide end investors with a user-friendly and truly consolidated overview of trading opportunities as well as lower costs through increased competition, to increase the attractiveness and competitiveness of EU capital markets and firms, and to foster the growth and well-functioning of the Capital Markets Union.

Amendment 166 #

Proposal for a regulation
Recital 24

(24) Given the novelty of the consolidated tape in the context of the EU financial markets, ESMA should be entrusted with providing the European Commission with an assessment of the revenue participation scheme designed for regulated markets in the context of mandatory participation in the consolidated tape for shares. This report should be prepared on the basis of at least 12 months of operation of the CTP and subsequently at the request of the Commission, where deemed necessary or appropriate. The assessment should focus in particular on whether the participation of small regulated markets in the revenue of the CTP is fair and effective in safeguarding the role that these markets play in their local financial ecosystem. The Commission should be empowered to revise the mechanism of allocation by way of a delegated act, where necessary or appropriate.

Amendment 167 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU

Proposal for a regulation
Recital 24

(24) Given the novelty of the consolidated tape in the context of the EU financial markets, ESMA should be entrusted with providing the European Commission with an assessment of the revenue participation scheme designed for regulated markets in the context of the consolidated tape for shares. This report should be prepared on the basis of at least 12 months of operation of the CTP and subsequently at the request of the Commission, where deemed necessary or appropriate. The assessment should focus in particular on whether the participation of small regulated markets and SME Growth Markets in the revenue of the CTP is fair and effective in safeguarding the role that these markets play in their local financial ecosystem. The Commission should be empowered to revise the mechanism of allocation by way of a delegated act, where necessary or appropriate.

Amendment 168 #

Proposal for a regulation
Recital 24

(24) Given the novelty of the consolidated tape in the context of the EU financial markets, ESMA should be entrusted with providing the European Commission with an assessment of the revenue participation scheme designed for regulated markets in the context of the consolidated tape ~~for shares~~. This report should be prepared on the basis of at least 12 months of operation of the CTP and subsequently at the request of the Commission, where deemed necessary or appropriate. The assessment should focus in particular on whether the participation of small regulated markets in the revenue of the CTP is fair and effective in safeguarding the role that these markets play in their local financial ecosystem. The Commission should be empowered to revise the mechanism of allocation by way of a delegated act, where necessary or appropriate.

Amendment 169 #

Proposal for a regulation
Recital 25

(25) It is necessary to ensure that consolidated tape providers remedy information asymmetries in the capital markets in a sustainable manner, and to ensure that consolidated tape providers provide consolidated data that are reliable. Consolidated tape providers should therefore be obliged to adhere to organisational requirements and quality of service standards that must be met at all times once they have been authorised by ESMA. Quality standards should cover aspects related to the collection of consolidated core market data, accurate time-stamping of such data at various stages in the delivery chain, collection and administration of market data subscription fees, and allocation of revenue to market data contributors. Consolidated tape providers shall ensure to provide data in an easily accessible format and free access for specific users such as retail investors and academics.

Amendment 170 #

Proposal for a regulation
Recital 26

(26) In order to safeguard market participants’ continued trust in the operation of a consolidated tape provider, such entities should periodically make a series of public reports concerning compliance with their obligations under this Regulation, in particular on performance statistics and incident reports relating to data quality and systems. Consolidated tape providers shall also put in place adequate protocols to mitigate their exposures to cyber-risk and their environmental impact. Due to the highly technical nature of the substance of the report, ESMA should be empowered to specify the substance, format and timing.

Amendment 171 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Recital 30

(30) An ad-hoc suspension mechanism is necessary to ensure that the Commission may swiftly react to significant changes in market conditions that may have a material effect on the trading of derivatives and their counterparties. Where such market conditions are present, and upon the request of the competent authority of a Member state, the Commission should be able to suspend the trading obligation, independently from any suspension of the clearing obligation. Such a suspension of the trading obligation should be possible where the activities of an EU investment firm with a non-EEA counterparty are unduly affected by the scope of the EU trading obligation on derivatives and where that investment firm acts as a market-maker in the category of derivatives subject to the trading obligation. The issue of overlapping DTOs is particularly acute when trading with counterparties domiciled in a third- country jurisdiction that applies its own DTO. This suspension would also help EU counterparties remaining competitive on global markets. When deciding upon the suspension of the trading obligation, the Commission should take into consideration the impact of such suspension on the clearing obligation laid down in Regulation (EU) No 648/2012.deleted

Amendment 172 #

Proposal for a regulation
Recital 32

(32) Financial intermediaries should strive to achieve the best possible price and the highest possible likelihood of execution for trades that they execute on behalf of their clients. To ~~that end,~~ensure that the best execution requirement described in Article 27 of Directive 2014/65/EU can be met financial intermediaries should select the trading venue or counterparty for executing their client trades solely on the basis of achieving best execution for their clients. It should be incompatible with that principle of best execution that a financial intermediary receives a payment from a trading counterpart in exchange for ensuring the execution of client trades. Investment firms should be therefore be prohibited from receiving such payment.

Amendment 173 #

Proposal for a regulation
Recital 32

(32) Financial intermediaries should strive to achieve the best possible price and the highest possible likelihood of execution for trades that they execute on behalf of their clients. To that end, financial intermediaries should select the trading venue or counterparty for executing their client trades solely on the basis of achieving best execution for their clients. It should be incompatible with that principle of best execution that a financial intermediary ~~receives a payment from a trading counterpart in exchange for ensuring the execution of client trades~~, when acting on behalf of its clients, receives a fee, a commission or any non-monetary benefit from a third party for routing client orders for execution by that third party as execution venue. Investment firms should be therefore be prohibited from receiving such payment or other non-monetary benefit.

Amendment 174 #

Markus FERBER, Stefan BERGER, Ralf SEEKATZ, Andreas SCHWAB

Proposal for a regulation
Recital 32

(32) Financial intermediaries should strive to achieve the best possible ~~price and the highest possible likelihood~~quality of execution for trades that they execute on behalf of their clients. To that end, financial intermediaries should select the trading venue or counterparty for executing their client trades solely on the basis of achieving best execution for their clients. ~~It should be incompatible with that principle of best execution that a f~~Financial intermediaryies receivesing a payment from a trading counterpart in exchange for ensuring the execution of client trades~~. Investment firms~~ should be therefore ~~be prohibited from receiving such payment~~adhere to strict governance and transparency rules.

Amendment 175 #

Proposal for a regulation
Recital 32

(32) Financial intermediaries should strive to achieve the best possible price and the highest possible likelihood of execution for trades that they execute on behalf of their clients. To that end, financial intermediaries should select the trading venue or counterparty for executing their client trades solely on the basis of achieving best execution for their clients. It should be incompatible with that principle of best execution that a financial intermediary receives a payment from a trading counterpart in exchange for ensuring the execution of client trades. Investment firms should be therefore be prohibited from receiving such paymentLack of harmonisation of what is entailed by the best execution requirements has led to divergent practices across the EU. Therefore, a new article 39a is introduced to specify the execution rules for retail orders.

Amendment 176 #

Proposal for a regulation
Recital 32

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

Amendment 177 #

Proposal for a regulation
Recital 33

(33) The Commission should adopt the draft regulatory technical standards developed by ESMA regarding the precise characteristics of the deferral regime for non-equity transactions, regarding ~~the provision of information on a reasonable commercial basis~~, regarding the application of the synchronised business clocks by trading venues, systematic internalisers, APAs and CTPs and regarding characteristics of the public reporting obligation of the CTP. The Commission should adopt those draft regulatory technical standards by means of delegated acts pursuant to Article 290 TFEU and in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Amendment 178 #

Proposal for a regulation
Recital 33 a (new)

(33 a) The Russian aggression over Ukraine triggered high market volatility on some commodity derivatives markets, in particular on energy and gas markets. However, trading venues have made little use of the tools provided in Article 48 of Directive 2014/65/EU and did not halt trading despite the significant volume and price volatility. Therefore, it appears necessary to enable competent authorities to require trading venues to make use of these tools in case of markets turmoil.

Amendment 179 #

Proposal for a regulation
Recital 34 a (new)

(34 a) Whereas the end goal of Markets in Financial Instruments Directive (MIFID II) and regulation (MiFIR) should be the protection of retail investors and mitigating the systemic risks on financial markets; Whereas any kind of conflict of interest should be stopped and therefore all payments of inducements to financial advisers should be banned; Whereas the use of gamification techniques by neobrokers should be investigated and addressed in the upcoming EU Retail Investment Strategy;

Amendment 180 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point a a (new)

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 30

(a a) Point (30) is replaced by the following: (30) ‘commodity derivatives’ means those financial instruments defined in point (44)(c) of Article 4(1) of Directive 2014/65/EU; which relate to a commodity or an underlying referred to in Section C(10) of Annex I to Directive 2014/65/EU; or in points (4), (5), (6), (7), (10) and (101) of Section C of Annex I thereto;

Amendment 181 #

Proposal for a regulation
Article 1 – paragraph 2 – point c

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 35

(35) ‘consolidated tape provider’ or ‘CTP’ means a person authorised in accordance with Title IVa, Chapter 1 of this Regulation to provide the service of collecting market data ~~for shares, ETFs, bonds or derivatives,~~ from market data contributors, and of consolidating those data into a continuous electronic live data stream providing core market data ~~per share, ETF, bond or derivatives~~ and of providing them to user of market data;;

Amendment 182 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point c

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 35

(35) ‘consolidated tape provider’ or ‘CTP’ means a person authorised in accordance with Title IVa, Chapter 1 of this Regulation to provide the service of collecting market data for shares, ETFs, bonds or derivatives, from market data contributors, and of consolidating those data into a continuous electronic live data stream providing core market data per share, ETF, bond or derivatives and of providing them to user of market data;, guarantying the quality of the data, it’s free access to retail investors and in a user-friendly way ;

Amendment 183 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a

~~(a) all of the following data on equities:~~deleted

Amendment 184 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

~~(i) the best bids and offers with corresponding volumes;~~deleted

Amendment 185 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point i

~~(i) the best bids and offers with corresponding volumes;~~deleted

Amendment 186 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point i

~~(i) the best bids and offers with corresponding volumes;~~deleted

Amendment 187 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point i

~~(i) the best bids and offers with corresponding volumes;~~deleted

Amendment 188 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a - point (i)

(i) thfor lit continuous trading mechanisms, the five best bids and offers prices with corresponding volumes available at those prices;

Amendment 189 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point i

(i) thfor lit continuous trading mechanisms, the five best bids and offers prices with corresponding volumes available at those prices;

Amendment 190 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point i

(i) thAt a minimum the five best bids and offers with corresponding volumes; and timestamps, limited to pre-trade transparency data for shares. For auction systems, that also means the price at which the auction trading system would best satisfy its trading algorithm and the volume that participants in that system would potentially execute at that price;

Amendment 191 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point i

(i) the best bids and offers with corresponding volumes and timestamps, limited to pre-trade transparency data for shares. For auction systems, that also means the price at which the trading algorithm would be best satisfied and the volume potentially executed at that price by participants in that system;

Amendment 192 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (ii)

~~(ii) the transaction price and volume executed at the stated price;~~deleted

Amendment 193 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point ii

(ii) for all-price forming trades across all trading mechanisms, the transaction price and volume executed at the stated price, the transaction time, the trading protocol, applicable waivers and deferrals in accordance with the industry standard Market Model Typology;

Amendment 194 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulatoin (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point ii

(ii) for price-forming trades across all trading mechanisms, the transaction price and volume executed at the stated price, the transaction time, the trading protocol, applicable waivers and deferrals in accordance with the industry standard Market Model Typology;

Amendment 195 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point ii

(ii) the transaction price and volume executed at the stated price, including trades concluded during intraday and end of day auctions;

Amendment 196 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (iii)

~~(iii) the intra-day auction information;~~deleted

Amendment 197 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point iii

~~(iii) the intra-day auction information;~~deleted

Amendment 198 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point iii

(iii) the intra-day auction information; for scheduled and unscheduled auctions (the open, close, and intraday), the indicative price and indicative volume during the auction call period ;

Amendment 199 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

~~(iv) the end-of-day auction information;~~deleted

Amendment 200 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point iv

~~(iv) the end-of-day auction information;~~deleted

Amendment 201 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point iv

(iv) the end-of-day auction information; for all venues and trading protocols operated, all changes to the trading status of the instrument - i.e. closed, suspended, regulatory halt, open in continuous, in auction;

Amendment 202 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (v)

~~(v) the market identifier code identifying the execution venue;~~deleted

Amendment 203 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point v

(v) on all messages, the market identifier code identifying the execution venue segment;

Amendment 204 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (vi)

~~(vi) the standardised instrument identifier that applies across venues;~~deleted

Amendment 205 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vi

(vi) on all messages, the standardised instrument identifier that applies across venues;

Amendment 206 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (vii)

~~(vii) the timestamp information on all of the following:~~deleted

Amendment 207 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii

(vii) on all messages, the timestamp information, including pre-trade transparency data, on all of the following:

Amendment 208 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

~~— the time of execution of the trade;~~deleted

Amendment 209 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 1

—- the venue’s time of execution of the trade;, or of amendment to the best bid or offer price or volume, amendment to the indicative price or volume, and amendment to the trading status of an instrument.

Amendment 210 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii – indent 1

— the venue's time of execution of the trade or of amendment to the best bid or offer price or volume, amendment to the indicative price or volume, and amendment to the trading status of an instrument;

Amendment 211 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (vii) – indent 2

~~— the time of publication of the trade;~~deleted

Amendment 212 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 2

—- the venue’s time of publication of the trade, updated bid or offer price or volume, updated indicative price or volume, amendment to the trading status of an instrument;

Amendment 213 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii – indent 2

— the venue's time of publication of the trade, updated bid or offer price or volume, updated indicative price or volume, and amendment to the trading status of an instrument;

Amendment 214 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (vii) – indent 3

~~— the receipt of market data from the market data contributors;~~deleted

Amendment 215 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 3

~~— the receipt of market data from the market data contributors;~~- any change to the trading status of an instrument or segment

Amendment 216 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii – indent 3

— the consolidated tape provider's receipt of market data from the market data contributors;

Amendment 217 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (vii) – indent 4

~~— the receipt of market data by the consolidated tape provider;~~deleted

Amendment 218 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 4

~~— the receipt of market data by the consolidated tape provider;~~deleted

Amendment 219 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a - point (vii) – indent 5

~~— the dissemination of consolidated market data to subscribers;~~deleted

Amendment 220 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 5

~~— the dissemination of consolidated market data to subscribers;~~deleted

Amendment 221 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii – indent 5

— the dissemination by the consolidated tape provider of consolidated market data to subscribers;

Amendment 222 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point a– point viii

~~(viii) the trading protocols and the applicable waivers or deferrals;~~deleted

Amendment 223 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a - point (viii)

(viii) the trading protocols and the applicable waivers or deferrals; - the CTP will also generate certain information that will be considered as core data: - the CTP’s receipt of market data from the market data contributors; - the dissemination of consolidated market data to subscribers;

Amendment 224 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point b

(b) all of the following data on non- equities: (i) the transaction price and quantity/size executed at the stated price; (ii) identifying the execution venue; (iii) that applies across venues; (iv) of the following: — — trade; — market data contributors; — consolidator’s aggregdeleted the market identifier code standardised instrument identifier the timestamp information on all the time of execution of the trade; the time of publication of the the receipt of market data from the the receipt of market data at the the dissemination/ of consolidat~~ion mechanism; — market data to subscribers; (v) applicable waivers or deferrals;~~ed the trading protocols and the

Amendment 225 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – Pararaph 1 – Point 36b – Point b – introductory part

(b) all of the following data on nbon~~- equi~~ds and OTC derivatives subject to the clearing obligation:

Amendment 226 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36 b – point b – introductory part

(b) all of the following data on nbon~~- equitie~~ds:

Amendment 227 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b a (new)

(36b a)“market data” means pre-trade and post-trade data generated as a by- product from the primary function of trading venues operating a multilateral system as defined in Article 4(1)(19) of Directive2014/65/EU and data published by APAs in accordance with the requirements set forth in Article 64 of Directive 2014/65/EU.;

Amendment 228 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

(36c) ‘regulatory data’ means data related to the status of systems matching orders in financial instruments, including information about circuit breakers, trading halts, and opening and closing prices of those financial instruments;deleted

Amendment 229 #

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36c a (new)

(36c a) ‘market operator group’ means a corporate entity or grouping that owns or controls two or more market operators within the Union.

Amendment 230 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 2 – point d

Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36c a (new)

(36c a) ‘Market operator group’ means a corporate entity or grouping that owns or controls two or more market operators within the Union.

Amendment 231 #

Proposal for a regulation
Article 1 – paragraph 3 – point a

Regulation (EU) No 600/2014
Article 4 – paragraph 1– point a

(a) paragraph 1 is amended as follows: (i) point (a) is replaced by the following: ‘ (a) larger than twice the standard market size and that are based on a trading methodology by which the price of the financial instruments referred to in Article 3(1) is derived from either of the following: (i) instruments at the trading venues where those financial instruments were first admitted to trading; (ii) the price of those financial instruments at the most relevant market in terms of liquidity where that price is widely published and is regarded by market participants as a reliable reference price; (iii) the consolidated tape for shares or ETFs.; ’ (ii) added: ‘ For the purposes of point (a), the continued use of that waiver shall be subject to the conditions set out in Article 5.; ’deleted systems matching orders that are the price of those financial the following subparagraph is

Amendment 232 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

Proposal for a regulation
Article 1 – paragraph 3 – point b

Regulation (EU) No 600/2014
Article 4 – paragraph 2 – subparagraph 1 – point a – point iii

~~(iii) the consolidated tape for shares or ETFs;~~deleted

Amendment 233 #

Proposal for a regulation
Article 1 – paragraph 3 – point b a (new)

Regulation (EU) No 600/2014
Article 4 – paragraph 6 – point e a (new)

(ba) in paragraph 6, the following point is added: ‘(ea) the minimum size of an order that may be matched using the trading methodology referred to in paragraph 1(a), shall be large in scale.’;

Amendment 234 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER, Caroline NAGTEGAAL, Gilles BOYER

Proposal for a regulation
Article 1 – paragraph 3 – point b a (new)

Regulation (EU) No 600/2014
Article 4 – paragraph 6 – subparagraph 1 – point f (new)

(b a) in paragraph 6, the following point is added: "(b a) the minimum size of an order that may be matched using the trading methodology referred to in paragraph 1(a), which shall not be lower than twice the standard market size."

Amendment 235 #

Proposal for a regulation
Article 1 – paragraph 3 – point b a (new)

Regulation (EU) No 600/2014
Article 4, paragraph 6, point (e a)

(b a) in paragraph 6, the following point is added: '(e a) the minimum size of an order that may be matched using the trading methodology referred to in paragraph 1(a), which shall be determined taking into account the international best practices, the competitiveness of Union firms, significant market impact as well as efficient price formation.;'

Amendment 236 #

Proposal for a regulation
Article 1 – paragraph 4 – point b

Regulation (EU) No 600/2014
Article 5 – paragraph 1

1. Trading venues ~~shall suspend their use of the waivers referred to in Article 4(1), point (a), and 4(1), point (b)(i~~and systematic internalisers shall suspend trading as referred to in paragraph 4(b) where the percentage of this volume traded in the Union in a financial instrument ~~carried out under those waivers exceeds 7% of the total volume traded in that financial instrument in the Union. Trading venues shall base their decision to suspend the use of those waivers~~exceeds the threshold determined by ESMA in accordance with paragraph 9. Trading venues and systematic internalisers shall base their decision on the data published by ESMA in accordance with paragraph 4, and shall take such decision within two working days after this publication of those data and for a period of six months.;

Amendment 237 #

Proposal for a regulation
Article 1 – paragraph 4 – point b

Regulation (EU) No 600/2014
Article 5 – Paragraph 1

1. Trading venues shall suspend their use of the waivers referred to in Article 4(1), point (a), and 4(1), point (b)(i) where the percentage of volume traded in the Union in a financial instrument carried out under those waivers exceeds 75% of the total volume traded in that financial instrument in the Union~~. Trading venues shall base their decision to suspend the use of those waivers on~~ and upon order of ESMA after the data published ~~by ESMA~~ in accordance with paragraph 4~~, and shall take such decision within two working days after this publication of those data and for a period of six months.~~;

Amendment 238 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 4 – point b

Regulation (EU) No 600/2014
Article 5 – paragraph 1

1. Trading venues shall suspend their use of the waivers referred to in Article 4(1), point (a), and 4(1), point (b)(i) and any price pegged to, imported, or derived from the current bid and offer prices displayed on lit markets, where the percentage of volume traded in the Union in a financial instrument carried out u~~nder~~sing thoese ~~waiver~~mechanisms exceeds 7% of the total volume traded in that financial instrument in the Union. Trading venues shall ~~base their decision to suspend the use of those waivers~~activate this suspension based on the data published by ESMA in accordance with paragraph 4, and shall take such decision within two working days after this publication of those data and for a period of six months.;

Amendment 239 #

Proposal for a regulation
Article 1 – paragraph 4 – point b

Regulation (EU) No 600/2014
Article 5 – paragraph 1

1. Trading venues shall suspend their use of the waivers referred to in Article 4(1), point (a), and 4(1), point (b)(i) where the percentage of volume traded in the Union in a financial instrument carried out under those waivers exceeds 7% of the total volume traded in that financial instrument in the Union as determined by ESMA according to Article 5 (9) of this regulation. Trading venues shall base their decision to suspend the use of those waivers on the data published by ESMA in accordance with paragraph 4, and shall take such decision within two working days after this publication of those data and for a period of six months.;

Amendment 240 #

Proposal for a regulation
Article 1 – paragraph 4 – point b

Regulation (EU) No 600/2014
Article 5 – Paragraph 1

Amendment 241 #

Proposal for a regulation
Article 1 – paragraph 4 – point b

Regulation 600/2014
Article 5(1)

1. Trading venues shall suspend their use of the waivers referred to in Article 4(1), point (a), and 4(1), point (b)(i) where the percentage of volume traded in the Union in a financial instrument carried out under those waivers exceeds 76% of the total volume traded in that financial instrument in the Union. Trading venues shall base their decision to suspend the use of those waivers on the data published by ESMA in accordance with paragraph 4, and shall take such decision within two working days after this publication of those data and for a period of six months.;

Amendment 242 #

Proposal for a regulation
Article 1 – paragraph 4 – point d

Regulation (EU) No 600/2014
Article 5 – paragraph 4

4. ESMA shall publish within five working days of the end of each calendar month all of the following data: (a) per financial instrument in the previous 12 months; (b) financial instrument carried out across the Union under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i); (c) derive the percentage referred to in point (b).;deleted the total volume of Union trading the percentage of trading in a the methodology that is used to

Amendment 243 #

Proposal for a regulation
Article 1 – paragraph 4 – point d

Regulation (EU) No 600/2014
Article 5 – paragraph 4

(d) paragraph 4 is replaced by the following: 4. ESMA shall publish within five working days of the end of each calendar month all of the following data: (a) the total volume of Union trading per financial instrument in the previous 12 months; (b) the percentage of trading in a financial instrument carried out across the Union under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i), and without pre-trade transparency for orders subject to the share trading obligation and outside the waivers referred to in Article 4(1); (c) the methodology that is used to derive the percentage referred to in point (b).

Amendment 244 #

Proposal for a regulation
Article 1 – paragraph 4 – point d

Regulation (EU) No 600/2014
Article 5 – paragraph 4

4. ESMA shall publish within f~~ive~~our working days of the end of each calendar month all of the following data:

Amendment 245 #

Proposal for a regulation
Article 1 – paragraph 4 – point d

Regulation (EU) No 600/2014
Article 5 (4) (b)

(b) the percentage of trading in a financial instrument ~~carried out across the Union under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i)~~as referred to in paragraph 1 carried out across the Union;

Amendment 246 #

Proposal for a regulation
Article 1 – paragraph 4 – point d

Regulation (EU) No 600/2014
Article 5 – Paragraph 4 – Point b

(b) the percentage of trading in a financial instrument carried out across the Union under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i) ), and without pre-trade transparency for orders subject to the share trading obligation and outside the waivers referred to in Article 4(1);

Amendment 247 #

Proposal for a regulation
Article 1 – paragraph 4 – point e a (new)

Regulation (EU) No 600/2014
Article 5 – paragraph 6

(e a) paragraph 6 is replaced as following: 6. "In the event that the report referred to in paragraph 4 identifies that overall Union trading in any financial instrument carried out under the waivers has exceeded 74,75 % of the total Union trading in the financial instrument, based on the previous 12 months’ trading, ESMA shall publish an additional report within five working days of the 15th on the day of the calendar month in which the report referred to in paragraph 4 is published. ~~That report shall contain the information specified in paragraph 4 in respect of those financial instruments where 7,75 % has been exceeded.~~ Or. en(reg 600/2014)

Amendment 248 #

Proposal for a regulation
Article 1 – paragraph 4 – point f

Regulation (EU) No 600/2014
Article 5 – Paragraph 7

7. To ensure a reliable basis for monitoring ~~the~~ trading ~~taking place under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i~~as referred to in paragraph 4(b) and for determining whether the limits referred to in paragraph 1 have been exceeded, operators of trading venues and systematic internalisers shall have in place systems and procedures to enable the identification of all trades referred to in paragraph 4(b) which have taken place on their ~~venue under those waivers.;~~execution venue.

Amendment 249 #

Proposal for a regulation
Article 1 – paragraph 4 – point f

Regulation (EU) No 600/2014
Article 5 – Paragraph 7

7. To ensure a reliable basis for monitoring the trading ~~taking place under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i)~~as referred to in paragraph 1 and for determining whether the limits referred to in paragraph 1 have been exceeded, operators of trading venues shall have in place systems and procedures to enable the identification of all trades which have taken place on their venue under those waivers and using such reference prices as referred to in paragraph 1.;

Amendment 250 #

Proposal for a regulation
Article 1 – paragraph 4 – point f

Regulation (EU) No 600/2014
Article 5 – Paragraph 7

7. 7. To ensure a reliable basis for monitoring the trading as referred to in paragraph 4(b) taking place under the waivers referred to in Article 4(1), point (a), and Article 4(1), point (b)(i) and for determining whether the limits referred to in paragraph 1 have been exceeded, operators of trading venues and systematic internalisers shall have in place systems and procedures to enable the identification of all trades referred to in paragraph 4(b) which have taken place on their ~~venue under those waivers.;~~execution venue.

Amendment 251 #

Proposal for a regulation
Article 1 – paragraph 4 – point f a (new)

Regulation (EU) No 600/2014
Article 5 – Paragraph 9

(f a) Paragraph 9 is replaced by the following : "ESMA shall develop draft regulatory technical standards to specify the following: (a) the volume cap threshold as outlined in paragraph 1 and the method by which it is defined. When defining the possible threshold, ESMA should take into account the impact of that measure on price formation, liquidity, and end investors’ outcomes; (b) the method, including the flagging of transactions, by which it collates, calculates and publishes the transaction data, as outlined in paragraph 4, in order to provide an accurate measurement of the total volume of trading per financial instrument and the percentages of trading that use those waivers across the Union and per trading venue. ESMA shall submit those draft regulatory technical standards to the Commission by ~~3 July 2015~~[six months after the date of entry into force of this amending Regulation. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. ’; ESMA shall review the appropriateness of the level of the volume cap at least every two years and submit updates to the regulatory technical standards if necessary. " Or. en (02014R0600-20220101)

Amendment 252 #

Proposal for a regulation
Article 1 – paragraph 4 a (new)

Regulation (EU) No 600/2014
Article 8 – Paragraph 8

(f a) Article 8 is replaced by the following: 1. 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 and derivatives traded on a trading venue. That requirement ~~shall~~ also applyies to actionable indication of interests. Market operators and investment firms operating a trading venue shall make that information available to the public on a continuous basis during normal trading hours. That publication obligation does not apply to those derivative transactions of non-financial counterparties which are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity of the non- financial counterparty or of that group. 2. The transparency requirements referred to in paragraph 1 shall be calibrated for different types of trading systems, including order-book, quote-driven, hybrid, periodic auction trading and voice trading systems. 3. Market operators and investment firms operating a trading venue shall give access, on reasonable commercial terms and on a non-discriminatory basis, to the arrangements they employ for making public the information referred to in paragraph 1 to investment firms which are obliged to publish their quotes in bonds, structured finance products, emission allowances and derivatives pursuant to Article 18. 4. Market operators and investment firms operating a trading venue shall, where a waiver is granted in accordance with Article 9(1)(b), make public a~~t least~~n indicative pre-trade bid and offer prices which are close to the price of the trading interests advertised through their systems in bonds, structured finance products, emission allowances and derivatives traded on a trading venue. Market operators and investment firms operating a trading venue shall make that information available to the public through appropriate electronic means on a continuous basis during normal trading hours. Those arrangements shall ensure that information is provided on reasonable commercial terms and on a non- discriminatory basis. Or. en(reg 600/2014)

Amendment 253 #

Proposal for a regulation
Article 1 – paragraph 5 – point a a (new)

Regulation (EU) No 600/2014
Article 9 – paragraph 3

(a a) Paragraph 3 is replaced by the following "3. Competent authorities shall regularly monitor the use and impact of the waivers granted in accordance with paragraph 1 and inform ESMA of their findings. Competent authorities, may, either on their own initiative or upon request by other competent authorities or by ESMA, withdraw a waiver granted under paragraph 1 if they observe that the waiver is being used in a way that deviates from its original purpose or if they consider that the waiver is being used to circumvent the requirements established in this Article. Competent authorities shall notify ESMA and other competent authorities of such withdrawal without delay and before it takes effect, providing full reasons for their decision. . " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02014R0600- 20220101&from=EN)

Amendment 254 #

Proposal for a regulation
Article 1 – paragraph 5 – point b a (new)

Regulation (EU) No 600/2014
Article 9 – paragraph 5

(ba) In paragraph 5 the following is added after point (e): (ea) the volume cap threshold as outlined in paragraph 1 and the method by which it is defined. When defining the possible threshold, ESMA should take into account the impact of that measure on price formation, liquidity, and end investors’ outcomes; (eb) the method, including the flagging of transactions, by which it collates, calculates and publishes the transaction data, as outlined in paragraph 4, in order to provide an accurate measurement of the total volume of trading per financial instrument and the percentages of trading that use those waivers across the Union and per trading venue. ESMA shall submit the draft regulatory technical standards referred to in points ea and eb to the Commission by ... [six months after the date of entry into force of this amending Regulation.

Amendment 255 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 5 a (new)

Regulation (EU) No 648/2012
Article 10 – Paragraph 1

(5 a) Article 10, paragraph 1 is replaced by: "'1. Market operators and investment firms operating a trading venue shall make public the price, volume and time of the transactions executed in respect of bonds, structured finance products, emission allowances and derivatives traded on a trading venue. Market operators and investment firms operating a trading venue shall make details of all such transactions public as close to real-time as is technically possible. The publication obligation shall not apply to derivative transactions of non-financial counterparties which are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity of the non- financial counterparty or of that group. " Or. en (02014R0600-20220101)

Amendment 256 #

Proposal for a regulation
Article 1 – paragraph 6

Regulation (EU) No 600/2014
Article 11

(6) Article 11 is amended as follows: (a) paragraph 1 is amended as follows: (i) by the following: ‘ Based on the deferral regime as set out in paragraph 4, competent authorities shall authorise market operators and investment firms operating a trading venue to defer the publication of the price of transactions until the end of the trading day, or the volume of transactions for a maximum of two weeks.; ’ (ii) (c) is deleted; (b) paragraph 3 is replaced by the following: ‘ 3. Competent authorities may, when authorising a deferred publication as referred to in paragraph 1 with regard to transactions in sovereign debt, allow market operators and investment firms operating a trading venue: (a) to allow the omission of the publication of the volume of an individual transaction during an extended time period of deferral; or (b) to publish in an aggregated form several transactions in sovereign debt for an indefinite period of time. ’ (c) paragraph 4 is amended as follows: (i) as follows: point (c) is replaced by the following: ‘ (c) the transactions eligible for price or volume deferral, and the transactions for which competent authorities shall authorise market operators and investment firms operating a trading venue to provide for deferred publication of the volume or price for one of the following durations: (i) (ii) (iii) ’ (ii) inserted after the first subparagraph: ‘ For the purposes of the first subparagraph, point (c), ESMA shall specify the buckets for which the deferral period shall apply across the Union by using the following criteria: (a) (b) particular transactions in illiquid markets or transactions that are large in scale; (c) bond as investment grade or high yield.; ’deleted the first subparagraph is replaced in the second subparagraph, point the first subparagraph is amended 15 minutes; end of trading day; two weeks.; the following subparagraph is the liquidity determination; the size of the transaction, in for bonds, the classification of the

Amendment 257 #

Proposal for a regulation
Article 1 – paragraph 6

Regulation (EU) No 600/2014
Article 11

(6) Article 11 is amended as follows: (a) follows: (i) by the following: ‘ Based on the deferral regime as set out in paragraph 4, competent authorities shall authorise market operators and investment firms operating a trading venue to defer the publication of the price of transactions until the end of the trading day, or the volume of transactions for a maximum of two weeks.; ’ (ii) (c) is deleted; (b) deleted paragraph 1 is amended as the first subparagraph 3 is replaced by the following: ‘ 3. Competent authorities may, when authorising a deferred publication as referred to in paragraph 1 with regard to transactions in sovereign debt, allow market operators and investment firms operating a trading venue: (a) to allow the omission of the publication of the volume of an individual transaction during an extended time period of deferral; or (b) to publish in an aggregated form several transactions in sovereign debt for an indefinite period of time. ’ (c) in the second subparagraph, point the first subparagraph 4 is amended as follows: (i) as follows: point (c) is replaced by the following: ‘ (c) the transactions eligible for price or volume deferral, and the transactions for which competent authorities shall authorise market operators and investment firms operating a trading venue to provide for deferred publication of the volume or price for one of the following durations: (i) (ii) (iii) ’ (ii) inserted after the first subparagraph: ‘ For the purposes of the first subparagraph, point (c), ESMA shall specify the buckets for which the deferral period shall apply across the Union by using the following criteria: (a) (b) particular15 minutes; end of trading day; two weeks.; the following subparagraph is the liquidity determination; the size of the transactions, in ~~illiquid markets or transactions that ar~~for bonds, the cla~~rge in scale; (c) bond as investment grade or high yield.; ’~~ssification of the

Amendment 258 #

Proposal for a regulation
Article 1 – paragraph 6 – point a – point i

Regulation (EU) No 600/2014
Article 11 – Paragraph 1– Subaragraph 1

Based on the deferral regime as set out in paragraph 4, only competent authorities ~~shall~~can authorise market operators and investment firms operating a trading venue to defer the publication of the price of transactions until the end of the trading day, or the volume of transactions for a maximum of ~~two~~one weeks.;

Amendment 259 #

Proposal for a regulation
Article 1 – paragraph 6 – point a – point i

Regulation (EU) No 600/2014
Article 11 – Paragraph 1 - Subparagraph 1

Based on the deferral regime as set out in paragraph 4, competent authorities shall authorise market operators and investment firms operating a trading venue to defer the publication of the price of transactions until the end of the trading day, or the volume of transactions for a maximum of ~~two~~one weeks.;

Amendment 260 #

Proposal for a regulation
Article 1 – paragraph 6 – point a – point i

Regulation (EU) No 600/2014
Article 11 – Paragraph 1 – Subparagraph 1

Amendment 261 #

Proposal for a regulation
Article 1 – paragraph 6 – point b

Regulation (EU) No 600/2014
Article 11 – Paragraph 3

3. Competent authorities may, when authorising a deferred publication as referred to in paragraph 1 with regard to transactions in sovereign debt of their Member State, allow market operators and investment firms operating a trading venue:

Amendment 262 #

Proposal for a regulation
Article 1 – paragraph 6 – point c – point -i (new)

Regulation (EU) No 600/2014
Article 11 – Paragraph 4 -introductory part

4. (-i) The introductory part is replaced by the following: 'ESMA shall develop draft regulatory technical standards to specify the following in such a way as to enable the publication of information required under ~~Article 64 of Directive 2014/65/EU:~~ this chapter' Or. en(https://eur-lex.europa.eu/legal- content/EN/TXT/HTML/?uri=CELEX:32014R0600&from=EN)

Amendment 263 #

Proposal for a regulation
Article 1 – paragraph 6 – point c – point ii

Regulation (EU) No 600/2014
Article 11 – Paragraph 4 - second subparagraph - point a

(a) the liquidity determination in relation to trades that are above retail size;

Amendment 264 #

Proposal for a regulation
Article 1 – paragraph 6 – point c – point ii

Regulation (EU) No 600/2014
Article 11 – Paragraph 4 - second subparagraph - point b

(b) the size of the transaction~~, in particular transactions in illiquid markets or transactions that are large in scale~~;

Amendment 265 #

Proposal for a regulation
Article 1 – paragraph 6 – point c – point ii

Regulation (EU) No 600/2014
Article 11 – Paragraph 4 - second subparagraph - point c

~~(c) for bonds, the classification of the bond as investment grade or high yield.;~~deleted

Amendment 266 #

Nicola BEER, Engin EROGLU

Proposal for a regulation
Article 1 – paragraph 6 a (new)

Regulation (EU) No 600/2014
Article 11

1. Competent authorities shall be able to authorise market operators and investment firms operating a trading venue to provide for deferred publication of the details of transactions based on the size or type of the transaction. In particular, the competent authorities may authorise the deferred publication in respect of transactions that: (a) are large in scale compared with the normal market size for that bond, structured finance product, emission allowance or derivative traded on a trading venue, or for that class of bond, structured finance product, emission allowance or derivative traded on a trading venue; or (b) are related to a bond, structured finance product, emission allowance or derivative traded on a trading venue, or a class of bond, structured finance product, emission allowance or derivative traded on a trading venue for which there is not a liquid market; (c) are above a size specific to that bond, structured finance product, emission allowance or derivative traded on a trading venue, or that class of bond, structured finance product, emission allowance or derivative traded on a trading venue, which would expose liquidity providers to undue risk and takes into account whether the relevant market participants are retail or wholesale investors. Market operators and investment firms operating a trading venue shall obtain the competent authority’s prior approval of proposed arrangements for deferred trade- publication, and shall clearly disclose those arrangements to market participants and the public. ESMA shall monitor the application of those arrangements for deferred trade-publication and shall submit an annual report to the Commission on how they are used in practice. 2. The competent authority responsible for supervising one or more trading venues on which a class of bond, structured finance product, emission allowance or derivative is traded may, where the liquidity of that class of financial instrument falls below the threshold determined in accordance with the methodology as referred to in Article 9(5)(a), temporarily suspend the obligations referred to in Article 10. That threshold shall be defined based on objective criteria specific to the market for the financial instrument concerned. Such temporary suspension shall be published on the website of the relevant competent authority. The temporary suspension shall be valid for an initial period not exceeding three months from the date of its publication on the website of the relevant competent authority. Such a suspension may be renewed for further periods not exceeding three months at a time if the grounds for the temporary suspension continue to be applicable. Where the temporary suspension is not renewed after that three-month period, it shall automatically lapse. Before suspending or renewing the temporary suspension of the obligations referred to in Article 10, the relevant competent authority shall notify ESMA of its intention and provide an explanation. ESMA shall issue an opinion to the competent authority as soon as practicable on whether in its view the suspension or the renewal of the temporary suspension is justified in accordance with the first and second subparagraphs. 3. Competent authorities may, in conjunction with an authorisation of deferred publication: (a) request the publication of limited details of a transaction or details of several transactions in an aggregated form, or a combination thereof, during the time period of deferral; (b) allow the omission of the publication of the volume of an individual transaction during an extended time period of deferral; (c) regarding non-equity instruments that are not sovereign debt, allow the publication of several transactions in an aggregated form during an extended time period of deferral; (d) regarding sovereign debt instruments, allow the publication of several transactions in an aggregated form for an indefinite period of time. In relation to sovereign debt instruments, points (b) and (d) may be used either separately or consecutively whereby once the volume omission extended period lapses, the volumes could then be published in aggregated form. In relation to all other financial instruments, when the deferral time period lapses, the outstanding details of the transaction and all the details of the transactions on an individual basis shall be published. 4. ESMA shall develop draft regulatory technical standards to specify the following in such a way as to enable the publication of information required under Article 64 of Directive 2014/65/EU: (a) the details of transactions that investment firms, including systematic internalisers, and market operators and investment firms operating a trading venue shall make available to the public for each class of financial instrument concerned in accordance with Article 10(1), including identifiers for the different types of transactions published under Article 10(1) and Article 21(1), distinguishing between those determined by factors linked primarily to the valuation of the financial instruments and those determined by other factors; b) the time limit that would be deemed in compliance with the obligation to publish as close to real time as possible including when trades are executed outside ordinary trading hours; (c) the conditions for authorising investment firms, including systematic internalisers, and market operators and investment firms operating a trading venue, to provide for deferred publication of the details of transactions for each class of financial instrument concerned in accordance with paragraph 1 of this Article and with Article 21(4); (d) the criteria to be applied when determining the size or type of a transaction for which deferred publication and publication of limited details of a transaction, or publication of details of several transactions in an aggregated form, or omission of the publication of the volume of a transaction with particular reference to allowing an extended length of time of deferral for certain financial instruments depending on their liquidity, is allowed under paragraph 3. ESMA shall submit those draft regulatory technical standards to the Commission by 3 July 2015. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. (6 a) Article 11 Authorisation of deferred publication 1 Market operators and investment firms operating a trading venue may defer the publication of the details of transactions, for a period calculated according to the size of transaction, the liquidity of the concerned instrument and its credit rating. The publication of the volume of very large transactions may be deferred for an extended period not exceeding four weeks. Market operators and investment firms operating a trading venue shall clearly disclose proposed arrangements for deferred trade-publication to market participants and the public. ESMA shall monitor the application of those arrangements for deferred trade-publication and shall submit an annual report to the Commission on how they are used in practice. The arrangements for deferred trade publication shall be organised using the following five categories of transactions related to a bond, structured finance product, emission allowance or derivative traded on a trading venue, or a class of bond, structured finance product, emission allowance or derivative traded on a trading venue: (a) category 1: transactions of a medium size in a financial instrument for which there is a liquid market; (b) category 2: transactions of a medium size in a financial instrument for which there is not a liquid market; (c) category 3: transactions of a large size in a financial instrument for which there is a liquid market; (d) category 4: transactions of a large size in a financial instrument for which there is not a liquid market; (e) category 5: transactions of a very large size, irrespective of the liquidity status of the financial instrument. 1a. Categories 4 and 5, representing larger trades in illiquid markets should benefit from deferrals where price and volume are aligned. Price disclosure with a longer volume deferral would still signal to the market that a large trade has occurred. 2. The competent authority responsible for supervising one or more trading venues on which a class of bond, structured finance product, emission allowance or derivative is traded may, where the liquidity of that class of financial instrument falls below the threshold determined in accordance with the methodology as referred to in Article 9(5)(a), temporarily suspend the obligations referred to in Article 10. That threshold shall be defined based on objective criteria specific to the market for the financial instrument concerned. Such temporary suspension shall be published on the website of the relevant competent authority. The temporary suspension shall be valid for an initial period not exceeding three months from the date of its publication on the website of the relevant competent authority. Such a suspension may be renewed for further periods not exceeding three months at a time if the grounds for the temporary suspension continue to be applicable. Where the temporary suspension is not renewed after that three month period, it shall automatically lapse. Before suspending or renewing the temporary suspension of the obligations referred to in Article 10, the relevant competent authority shall notify ESMA of its intention and provide an explanation. ESMA shall issue an opinion to the competent authority as soon as practicable on whether in its view the suspension or the renewal of the temporary suspension is justified in accordance with the first and second subparagraphs. 3. ESMA shall develop draft regulatory technical standards to specify the following in such a way as to enable the publication of information required under this Article as well as under Article 27g: (a) the details of transactions that investment firms, including systematic internalisers, and market operators and investment firms operating a trading venue shall make available to the public for each class of financial instrument concerned in accordance with Article 10(1), including identifiers for the different types of transactions published under Article10(1) and Article 21(1), distinguishing between those determined by factors linked primarily to the valuation of the financial instruments and those determined by other factors; (b) the time limit that would be deemed in compliance with the obligation to publish as close to real time as possible including when trades are executed outside ordinary trading hours. ESMA shall regularly review that time limit and adjust it in line with technological developments; (c) for the purposes of determining the categories referred to in the third subparagraph of paragraph 1, what constitutes a transaction of a medium and large size in the financial instrument referred to in paragraph 1of this Article and Article 21(1); (ca) for the purposes of determining the categories referred to in the third subparagraph of paragraph 1, the issuance sizes that qualify a financial instrument as belonging to a liquid or an illiquid market; (cb) the price and volume deferrals applicable to each of the five categories set out in the third subparagraph of paragraph 1 of this Article for transactions in instruments referred to in paragraph 1 of this Article and Article 21(1). In order to establish the price and volume deferrals, ESMA shall perform a quantitative and qualitative analysis to determine deferrals period per category of bond, respecting the critical link between trade size, liquidity, and credit rating on the one hand and corresponding deferral period. Where available, ESMA shall use the post-trade transparency data published by the consolidated tape for this purpose.

Amendment 267 #

Proposal for a regulation
Article 1 – paragraph 6 a (new)

Regulation (EU) No 600/2014
Article 11

Article 11 Authorisation of deferred publication Competent authorities shall be able to authorise market operators and investment firms operating a trading venue to provide for deferred publication of the details of transactions based on the size or type of the transaction. In particular, the competent authorities may authorise the deferred publication in respect of transactions that: (a) are large in scale compared with the normal market size for that bond, structured finance product, emission allowance or derivative traded on a trading venue, or for that class of bond, structured finance product, emission allowance or derivative traded on a trading venue; or (b) are related to a bond, structured finance product, emission allowance or derivative traded on a trading venue, or a class of bond, structured finance product, emission allowance or derivative traded on a trading venue for which there is not a liquid market; (c) are above a size specific to that bond, structured finance product, emission allowance or derivative traded on a trading venue, or that class of bond, structured finance product, emission allowance or derivative traded on a trading venue, which would expose liquidity providers to undue risk and takes into account whether the relevant market participants are retail or wholesale investors. Market operators and investment firms operating a trading venue shall obtain the competent authority’s prior approval of proposed arrangements for deferred trade- publication, and shall clearly disclose those arrangements to market participants and the public. ESMA shall monitor the application of those arrangements for deferred trade-publication and shall submit an annual report to the Commission on how they are used in practice. 2. The competent authority responsible for supervising one or more trading venues on which a class of bond, structured finance product, emission allowance or derivative is traded may, where the liquidity of that class of financial instrument falls below the threshold determined in accordance with the methodology as referred to in Article 9(5)(a), temporarily suspend the obligations referred to in Article 10. That threshold shall be defined based on objective criteria specific to the market for the financial instrument concerned. Such temporary suspension shall be published on the website of the relevant competent authority. The temporary suspension shall be valid for an initial period not exceeding three months from the date of its publication on the website of the relevant competent authority. Such a suspension may be renewed for further periods not exceeding three months at a time if the grounds for the temporary suspension continue to be applicable. Where the temporary suspension is not renewed after that three- month period, it shall automatically lapse. Before suspending or renewing the temporary suspension of the obligations referred to in Article 10, the relevant competent authority shall notify ESMA of its intention and provide an explanation. ESMA shall issue an opinion to the competent authority as soon as practicable on whether in its view the suspension or the renewal of the temporary suspension is justified in accordance with the first and second subparagraphs. 3. Competent authorities may, in conjunction with an authorisation of deferred publication: (a) request the publication of limited details of a transaction or details of several transactions in an aggregated form, or a combination thereof, during the time period of deferral; (b) allow the omission of the publication of the volume of an individual transaction during an extended time period of deferral; (c) regarding non-equity instruments that are not sovereign debt, allow the publication of several transactions in an aggregated form during an extended time period of deferral; (d) regarding sovereign debt instruments, allow the publication of several transactions in an aggregated form for an indefinite period of time. In relation to sovereign debt instruments, points (b) and (d) may be used either separately or consecutively whereby once the volume omission extended period lapses, the volumes could then be published in aggregated form. In relation to all other financial instruments, when the deferral time period lapses, the outstanding details of the transaction and all the details of the transactions on an individual basis shall be published. 4. ESMA shall develop draft regulatory technical standards to specify the following in such a way as to enable the publication of information required under Article 64 of Directive 2014/65/EU: (a) the details of transactions that investment firms, including systematic internalisers, and market operators and investment firms operating a trading venue shall make available to the public for each class of financial instrument concerned in accordance with Article 10(1), including identifiers for the different types of transactions published under Article 10(1) and Article 21(1), distinguishing between those determined by factors linked primarily to the valuation of the financial instruments and those determined by other factors; (b) the time limit that would be deemed in compliance with the obligation to publish as close to real time as possible including when trades are executed outside ordinary trading hours; (c) the conditions for authorising investment firms, including systematic internalisers, and market operators and investment firms operating a trading venue, to provide for deferred publication of the details of transactions for each class of financial instrument concerned in accordance with paragraph 1 of this Article and with Article 21(4); (d) the criteria to be applied when determining the size or type of a transaction for which deferred publication and publication of limited details of a transaction, or publication of details of several transactions in an aggregated form, or omission of the publication of the volume of a transaction with particular reference to allowing an extended length of time of deferral for certain financial instruments depending on their liquidity, is allowed under paragraph 3. ESMA shall submit those draft regulatory technical standards to the Commission by 3 July 2015. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0600-20220101)(6 a) Article 11 is replaced by the following: "Article 11 Authorisation of deferred publication 1. Market operators and investment firms operating a trading venue may defer the publication of the details of transactions, including the price and the volume, for a maximum duration not exceeding four weeks. Market operators and investment firms operating a trading venue shall clearly disclose proposed arrangements for deferred trade-publication to market participants and the public. ESMA should monitor the application of those arrangements for deferred trade-publication and shall submit an annual report to the Commission on how they are used in practice. The arrangements for deferred trade publication shall be organised using the following five categories of transactions related to a bond, structured finance product, emission allowance or derivative traded on a trading venue, or a class of bond, structured finance product, emission allowance or derivative traded on a trading venue: (a) category 1: transactions of a medium size in a financial instrument for which there is a liquid market; (b) category 2: transactions of a medium size in a financial instrument for which there is not a liquid market; (c) category 3: transactions of a large size in a financial instrument for which there is a liquid market; (d) category 4: transactions of a large size in a financial instrument for which there is not a liquid market; (e) category 5: transactions of a very large size, irrespective of the liquidity status of the financial instrument. 2. The competent authority responsible for supervising one or more trading venues on which a class of bond, structured finance product, emission allowance or derivative is traded may, where the liquidity of that class of financial instrument falls below the threshold determined in accordance with the methodology as referred to in Article 9(5)(a), temporarily suspend the obligations referred to in Article 10. That threshold shall be defined based on objective criteria specific to the market for the financial instrument concerned. Such temporary suspension shall be published on the website of the relevant competent authority. The temporary suspension shall be valid for an initial period not exceeding three months from the date of its publication on the website of the relevant competent authority. Such a suspension may be renewed for further periods not exceeding three months at a time if the grounds for the temporary suspension continue to be applicable. Where the temporary suspension is not renewed after that three- month period, it shall automatically lapse. Before suspending or renewing the temporary suspension of the obligations referred to in Article 10, the relevant competent authority shall notify ESMA of its intention and provide an explanation. ESMA should issue an opinion to the competent authority as soon as practicable on whether in its view the suspension or the renewal of the temporary suspension is justified in accordance with the first and second subparagraphs. 3. With respect to sovereign debt instruments, competent authorities of a sovereign debt instrument may allow, with regard to transactions in that sovereign debt instrument in the Union: (a) the omission of the publication of the volume of an individual transaction during an extended time period of deferral; (b) the publication of the details of several transactions in an aggregated form for an indefinite period of time. 4. ESMA should develop draft regulatory technical standards to specify the following in such a way as to enable the publication of information required under this Article as well as under Article27g: (a) the details of transactions that investment firms, including systematic internalisers, and market operators and investment firms operating a trading venue shall make available to the public for each class of financial instrument concerned in accordance with Article 10(1), including identifiers for the different types of transactions published under Article 10(1) and Article 21(1), distinguishing between those determined by factors linked primarily to the valuation of the financial instruments and those determined by other factors; (b) the time limit that would be deemed in compliance with the obligation to publish as close to real time as possible including when trades are executed outside ordinary trading hours; (c) for the purposes of determining the categories referred to in the third subparagraph of paragraph 1, what constitutes a transaction of a medium and large size in the financial instrument referred to in paragraph 1of this Article and Article 21(1); (ca) for the purposes of determining the categories referred to in the third subparagraph of paragraph 1, the issuance sizes that qualify a financial instrument as belonging to a liquid or an illiquid market; (cb) the price and volume deferrals applicable to each of the five categories set out in the third subparagraph of paragraph 1 of this Article for transactions in instruments referred to in paragraph 1 of this Article and Article21(1). For establishing the price and volume deferrals in paragraph 4(cb), ESMA shall apply the following maximum durations: (i) for transactions in category 1: a price deferral and a volume deferral not exceeding 15 minutes; (ii) for transactions in category 2: a price deferral and a volume deferral not exceeding the end of the trading day; (iii) for transactions in the category 3: a price deferral and a volume deferral not exceeding one week. (iv) for transactions in category 4: a price deferral and a volume deferral not exceeding two weeks following the transaction date; (v) for transactions in category 5: a price deferral and a volume deferral not exceeding four weeks following the transaction date. (d) the criteria to be applied when determining the size or type of a transaction for which deferred publication and publication of limited details of a transaction, or publication of details of several transactions in an aggregated form, or omission of the publication of the volume of a transaction with particular reference to allowing an extended length of time of deferral for certain financial instruments depending on their liquidity, is allowed under paragraph 3. ESMA should submit those draft regulatory technical standards to the Commission by... [six months after the date of entry into force of this amending Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation(EU) No 1095/2010.’; Or. en

Amendment 268 #

Proposal for a regulation
Article 1 – paragraph 7

Regulation (EU) No 600/2014
Article 13 – Paragraph 3

(7) in Article 13, the following paragraph 3 is added: ‘ 3. regulatory technical standards to specify the content, format and terminology of the reasonable commercial basis information that trading venues, APAs, CTPs and systematic internalisers have to make available to the public. ESMA shall submit those draft regulatory technical standards to the Commission by [OP please insert nine months after entry into force]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.; ’deleted ESMA shall develop draft

Amendment 269 #

Proposal for a regulation
Article 1 – paragraph 7

Regulation (EU) No 600/2014
Article 13 – Paragraph 3

Amendment 270 #

Linea SØGAARD-LIDELL

Proposal for a regulation
Article 1 – paragraph 7

Regulation (EU) No 600/2014
Article 13 – Paragraph 3- first subparagraph

3. ESMA shall develop draft regulatory technical standards to (a) specify what constitutes a reasonable commercial basis, as well as the content, format and terminology of the reasonable commercial basis information that trading venues, APAs, CTPs and systematic internalisers have to make available to the public. ; (b) specify the frequency, contact details and format of the information to be provided to the competent authorities and ESMA in accordance with paragraph (c) ESMA shall develop a cost benchmark which defines the costs of producing and disseminating market data as a by-product of the trading activity and what constitutes a reasonable margin that market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall follow to comply with Article 13 (2) and

Amendment 271 #

Proposal for a regulation
Article 1 – paragraph 7

Regulation (EU) No 600/2014
Article 13 – paragraph 3 – first subparagraph

Amendment 272 #

Proposal for a regulation
Article 1 – paragraph 7

Regulation (EU) No 600/2014
Article 13 – paragraph 3 – first subparagraph

3. ESMA shall develop draft regulatory technical standards to: (a) specify what constitutes a reasonable commercial basis, as well as the content, format and terminology of the reasonable commercial basis information that trading venues, APAs, CTPs and systematic internalisers have to make available to the public; and (b) specify the frequency, contact details and format of the information to be provided to the competent authorities and ESMA in accordance with paragraph 3.

Amendment 273 #

Linea SØGAARD-LIDELL

Proposal for a regulation
Article 1 – paragraph 7 a (new)

Regulation (EU) No 600/2014
Article 13 – Paragraph 3a (new)

3a. ESMA shall assess the development in market data costs every second year to measure the adequacy of the rules as well as compliance with the rules. Following this assessment, ESMA shall develop recommendations on whether price regulation such as LRIC+ must be introduced.

Amendment 274 #

Proposal for a regulation
Article 1 – paragraph 7 a (new)

Regulation (EU) No 600/2014
Article 13 – paragraph 3a (new)

3 a. For developing the draft technical standards referred to in paragraph 3, ESMA shall take into account the economic feasibility of market participants of all sizes, in particular in the case of mandatory consumption of a consolidated tape. In that case, ESMA shall ensure that all market players are able to consume the consolidated tape at a price that does not put signifiant economic burden on current business models.

Amendment 275 #

Proposal for a regulation
Article 1 – paragraph 7 a (new)

Regulation (EU) No 600/2014
Article 13 – paragraph 3a (new)

3a. ESMA shall develop draft regulatory technical standards to identify the cost criteria of producing and disseminating market data resulting from trading activities and specify what constitutes a reasonable margin that market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall follow to comply with Article 13 (2). ESMA shall regularly monitor the developments in market data costs and the levels of compliance with the rules, and shall regularly update its draft regulatory technical standards in light of the result of its assessment.

Amendment 276 #

Proposal for a regulation
Article 1 – paragraph 6 a (new)

Regulation (EU) No 600/2014
Article 13 – paragraph 1 and 2

(6 a) Article 13 paragraph 1 and 2 are replaced by the following: 1. Market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall make the information published in accordance with Articles 3~~, 4~~ and ~~6 to 11~~Article 4,Articles 6 to 11, and Articles 14, 20, 21, 27g and 27h, available to the public on a reasonable commercial basis and ensure non- discriminatory access to the information. ~~Such information shall be made~~Market operators and investment firms operating a trading venue, APAs and systematic internalisers shall make such information available free of charge 15 minutes after publication. 2. ThProviding data on a reasonable Ccomm~~ission shall adopt delegated acts in accordance with Article 50 clarifying what constitutes a reasonable commercial basis to make information public as referred to in paragraph 1.~~ercial basis means that the price of market data shall be based on the long term cost incremental cost of producing and disseminating such data and may include a reasonable margin not exceeding inflation. Providing data on a reasonable commercial basis furthermore means that the price of market data shall not be based on the value generated by the data user. In this respect Art. 86 (2) of Delegated Regulation2017/565 and Art 8 (2) of Delegated Regulation shall not apply. 2a.Market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall, upon request, provide the competent authorities and ESMA with information on the actual costs of producing and disseminating market data including the margins; "

Amendment 277 #

Proposal for a regulation
Article 1 – paragraph 7 b (new)

Regulation (EU) No 600/2014
Article 13 – new paragraph 3 a (new)

(3 a) ESMA shall develop a cost benchmark which defines the costs of producing and disseminating market data as a by-product of the trading activity and what constitutes a reasonable margin that market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall follow to comply with Article 13 (2).

Amendment 278 #

Proposal for a regulation
Article 1 – paragraph 7 c (new)

(3 b) ESMA shall assess the development in market data costs every second year to measure the adequacy of the rules as well as compliance with the rules. Following this assessment, ESMA shall develop recommendations on whether additional measures must be introduced.

Amendment 279 #

Proposal for a regulation
Article 1 – paragraph 7 d (new)

Regulation (EU) No 600/2014
Article 14

Article 14 Obligation for systematic internalisers to make public firm quotes in respect of shares, depositary receipts, ETFs, certificates and other similar financial instruments 1. Investment firms shall make public firm quotes in respect of those shares, depositary receipts, ETFs, certificates and other similar financial instruments traded on a trading venue for which they are systematic internalisers and for which there is a liquid market. Where there is not a liquid market for the financial instruments referred to in the first subparagraph, systematic internalisers shall disclose quotes to their clients upon request. 2. This Article and Articles 15, 16 and 17 shall apply to systematic internalisers when they deal in sizes up to standard market size. Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above standard market size. 3. Systematic internalisers may decide the size or sizes at which they will quote. The minimum quote size shall be at least the equivalent of 10 % of the standard market size of a share, depositary receipt, ETF, certificate or other similar financial instrument traded on a trading venue. For a particular share, depositary receipt, ETF, certificate or other similar financial instrument traded on a trading venue each quote shall include a firm bid and offer price or prices for a size or sizes which could be up to standard market size for the class of shares, depositary receipts, ETFs, certificates or other similar financial instruments to which the financial instrument belongs. The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or other similar financial instrument. 4. Shares, depositary receipts, ETFs, certificates and other similar financial instruments shall be grouped in classes on the basis of the arithmetic average value of the orders executed in the market for that financial instrument. The standard market size for each class of shares, depositary receipts, ETFs, certificates and other similar financial instruments shall be a size representative of the arithmetic average value of the orders executed in the market for the financial instruments included in each class. 5. The market for each share, depositary receipt, ETF, certificate or other similar financial instrument shall be comprised of all orders executed in the Union in respect of that financial instrument excluding those that are large in scale compared to normal market size. 6. The competent authority of the most relevant market in terms of liquidity as defined in Article 26 for each share, depositary receipt, ETF, certificate and other similar financial instrument shall determine at least annually, on the basis of the arithmetic average value of the orders executed in the market in respect of that financial instrument, the class to which it belongs. That information shall be made public to all market participants and communicated to ESMA which shall publish the information on its website. 7. In order to ensure the efficient valuation of shares, depositary receipts, ETFs, certificates and other similar financial instruments and maximise the possibility of investment firms to obtain the best deal for their clients, ESMA shall develop draft regulatory technical standards to specify further the arrangements for the publication of a firm quote as referred to in paragraph 1, the determination of whether prices reflect prevailing market conditions as referred to in paragraph 3, and of the standard market size as referred to in paragraphs 2 and 4. ESMA shall submit those draft regulatory technical standards to the Commission by 3 July 2015. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. is deleted " Or. en (02014R0600-20220101)

Amendment 280 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – Paragraph 2 and 3

(a) paragraphs 2 and 3 are replaced by the following: ‘ 2. and 17 shall apply to systematic internalisers when they deal in sizes up to twice the standard market size. Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above twice the standard market size. 3. allowed to quote any size. The minimum quoting size shall be at least the equivalent of twice the standard market size of a share, depositary receipt, ETF, certificate, or other financial instrument that is similar to those financial instruments and that is traded on a trading venue. For a particular share, depository receipt, ETF, certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue, each quote shall include a firm bid and offer price, or firm bid and offer prices for a size or sizes which could be up to twice the standard market size for the class of shares, depositary receipts, ETFs, certificates or financial instruments that are similar to those financial instruments, to which the financial instrument belongs. The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or financial instrument that is similar to those financial instruments.;deleted This Article and Articles 15, 16 Systematic internalisers are

Amendment 281 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 2

2. This Article and Articles 15, 16 and 17 shall apply to systematic internalisers when they deal in sizes up to twice the standard market size. Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above twice the standard market size.deleted

Amendment 282 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 2

2. This Article and Articles 15, 16 and 17 shall apply to systematic internalisers when they deal in sizes up to t~~wic~~he th~~e standard market size~~reshold determined by ESMA in accordance with Article 4(6)(ea). Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above t~~wice the standard market size~~hat threshold.

Amendment 283 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 2

2. This Article and Articles 15, 16 and 17 shall apply to systematic internalisers when they deal in sizes up to t~~wic~~he th~~e standard market size~~reshold determined by ESMA in accordance with Article 4(6)(f). Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above t~~wice the standard market size~~hat threshold.

Amendment 284 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 2

2. This Article and Articles 15, 16 and 17 shall apply to systematic internalisers when they deal in sizes up to t~~wice the standard market size~~he size determined by ESMA in accordance with paragraph 7. Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above twice the standard market size.

Amendment 285 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 2

2. This Article and Articles 15~~, 16~~ (1) and 17 shall apply to systematic internalisers when they deal in sizes up to twice the standard market size. Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above twice the standard market size.

Amendment 286 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 3

3. Systematic internalisers are allowed to quote any size. The minimum quoting size shall be at least the equivalent of twice the standard market size of a share, depositary receipt, ETF, certificate, or other financial instrument that is similar to thosshall be prohibited from quoting and matching orders that are smaller than large fin~~ancial instruments and that is traded on a trading venu~~ scale. For a particular share, depository receipt, ETF, certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue, each quote shall include a firm bid and offer ~~price, or firm bid and offer~~ prices for a size or sizes which could be ~~up to twice the standard market size for the class of shares, depositary receipts, ETFs, certificates or financial instruments that are similar to thos~~minimum large fin~~ancial instruments, to which the financial instrument belongs~~ scale. The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or financial instrument that is similar to those financial instruments.;

Amendment 287 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 3

3. Systematic internalisers are allowed to quote any size. The minimum quoting size shall be at ~~least the equivalent~~the minimum of twice the standard market size ~~of a share, depositary receipt, ETF, certificate, or other financial instrument that is similar to those financial instruments and that is traded on a trading venue~~. For a particular share, depository receipt, ETF, certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue, each quote shall include a firm bid and offer price, or firm bid and offer prices for a size or sizes which could be up to t~~wice the standard market size for the class of shares, depositary receipts, ETFs, certificates or financial instruments that are similar to those financial instruments, to wh~~he minimum of twiche the ~~financial instrument belongs~~standard market size. The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or financial instrument that is similar to those financial instruments.;

Amendment 288 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 3

3. Systematic internalisers are allowed to quote any size. The minimum quoting size shall be at least the equivalent of twice the standard market size of a share, depositary receipt, ETF, certificate, or other financial instrument that is similar to those financial instruments and that is traded on a trading venuedetermined by ESMA and shall be lower than the threshold determined in accordance with Article 4(6)(ea). For a particular share, depository receipt, ETF, certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue, each quote shall include a firm bid and offer price, or firm bid and offer prices for a size or sizes which could be up to t~~wic~~he the standard market size for the class of shares, depositary receipts, ETFs, certificates or financial instruments that are similar to those financial instruments, to which the financial instrument belongsreshold determined by ESMA in accordance with Article 4(6)(ea). The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or financial instrument that is similar to those financial instruments.;

Amendment 289 #

Proposal for a regulation
Article 1 – paragraph 8 – point a

Regulation (EU) No 600/2014
Article 14 – paragraph 3

3. Systematic internalisers ~~are allowed to quote any size. The~~’ minimum quoting size shall be at least the equivalent ~~of twice the standard market size of~~for a share, depositary receipt, ETF, certificate, or other financial instrument t~~hat is similar to those financial instruments and that is traded on a trading venue~~raded on a trading venue shall be the determined by ESMA in accordance with paragraph 7. For a particular share, depository receipt, ETF, certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue, each quote shall include a firm bid and offer price, or firm bid and offer prices for a size or sizes which could be up to twice the s~~tandard market size~~ize determined by ESMA in accordance with paragraph 7 for the class of shares, depositary receipts, ETFs, certificates or financial instruments that are similar to those financial instruments, to which the financial instrument belongs. The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or financial instrument that is similar to those financial instruments.’;

Amendment 290 #

Proposal for a regulation
Article 1 – paragraph 8 – point b

Regulation (EU) No 600/2014
Article 14 – Paragraph 6a

~~(b) the following paragraph 6a is inserted: ‘ 6a. match orders at the mid-point within the current bid and offer prices.; ’~~deleted Systematic internalisers shall not

Amendment 291 #

Proposal for a regulation
Article 1 – paragraph 8 – point b

Regulation (EU) No 600/2014
Article 14 – Paragraph 6a

~~(b) the following paragraph 6a is inserted: ‘ 6a. Systematic internalisers shall not match orders at the mid-point within the current bid and offer prices.; ’~~deleted

Amendment 292 #

Proposal for a regulation
Article 1 – paragraph 8 – point b a (new)

Regulation (EU) No 600/2014
Article 14 – paragraph 6b (new)

6b. ESMA shall, taking into consideration efficient valuation of shares, depositary receipts, ETFs, certificates and other similar financial instruments as well as the provision of favourable deals for investment firm clients, assess the appropriateness of the threshold for: (a) the arrangements for the publication of a firm quote as referred to in paragraph 1; (b) the size below which this Article and Articles 15, 16 and 17 shall apply to systematic internalisers as referred to in paragraph 2. (c) the minimum quoting sizes as referred to in paragraph 3; (d) the determination of whether prices reflect prevailing market conditions as referred to in paragraph 3; and (e) the standard market size as referred to in paragraph 4.’; and report to the Commission by 31 December 2024. The Commission may, having taken into account that ESMA report, adopt a delegated act to modify the thresholds referred to in points a-e, where appropriate.

Amendment 293 #

Proposal for a regulation
Article 1 – paragraph 8 – point b b (new)

Regulation (EU) No 600/2014
Article 14 – Paragraph 7 - first subparagraph

7.(b a) in paragraph 7, the first subparagraph is replaced by the following: In order to ensure the efficient valuation of shares, depositary receipts, ETFs, certificates and other similar financial instruments and maximise the possibility of investment firms to obtain the best deal for their clients, ESMA shall develop draft regulatory technical standards to specify ~~further~~ing: (a) the arrangements for the publication of a firm quote as referred to in paragraph 1,; (b) the size below which this Article and Articles 15, 16 and 17 shall apply to systematic internalisers as referred to in paragraph 2. This size should exceed twice the standard market size; (c) the minimum quoting sizes as referred to in paragraph 3; (d) the determination of whether prices reflect prevailing market conditions as referred to in paragraph 3~~, and of~~; (e) the standard market size as referred to in paragraph~~s 2 and~~ 4.

Amendment 294 #

Proposal for a regulation
Article 1 – paragraph 8 ba (new)

Regulation (EU) No 600/2014
Article 14 a (new)

A new Article 14a is added : Article 14a Scope for systematic internalisers to quote and trade in respect of shares, depositary receipts, ETFs, certificates and other similar financial instruments Systematic internalisers are only allowed to quote and trade orders that are large in scale compared with normal market size in accordance with Article 4. Or. en (02014R0600-20220101)

Amendment 295 #

Proposal for a regulation
Article 1 – paragraph 8a

Regulation (EU) 2016/1011
Article 15

(30) Article 15 is deleted;

Amendment 296 #

Proposal for a regulation
Article 1 – paragraph 8 c (new)

Regulation (EU) No 600/2014
Article 15 – paragraph 1

1. Systematic internalisers shall make public their quotes on a regular and continuous basis during normal trading hours. They may update their quotes at any time. They shall be allowed, under exceptional market conditions, withdraw their quotes(8 a) Article 15 is amended as follows: (a) paragraph 1 is replaced by the following: to ‘1. Member States shall require that firms that meet the definition of systematic internaliser notify their competent authority. Such notification shall be transmitted to ESMA. ESMA shall establish a list of all SIs in the Union. Member States shall require that firms that meet the definition of systematic internaliser ~~notify~~provide their competent authority. Such notification shall be transmitted to ESMA. ESMA shall establish a list of all SIs in the Union. The quotes shall be made public in a manner which is easily accessible to other market participants on a reasonable commercial basis. with a detailed description of the functioning of the systematic internaliser, including any links to or participation by a regulated market, an MTF, an OTF or a systematic internaliser owned by the same investment firm, and a list of their members, participants and/or users. Competent authorities shall make that information available to ESMA on request. Member States shall require that firms that meet the definition of systematic internaliser establish and implement transparent and non-discriminatory rules and objective 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.’

Amendment 297 #

Proposal for a regulation
Article 1 – paragraph 8 d (new)

Regulation (EU) No 600/2014
Article 15 – paragraph 1

(8 a) In Article 15, paragraph 1, the following subparagraph is added after third subparagraph: 'Upon the request of competent authorities, systematic internalisers shall provide the competent authority with a detailed description of the functioning of the systematic internaliser, including any links to or participation by a regulated market, an MTF, an OTF or a systematic internaliser owned by the same investment firm.'

Amendment 298 #

Proposal for a regulation
Article 1 – paragraph 8 e (new)

Regulation (EU) No 600/2014
Article 15 – Paragraph 1

(8 a) In Article 15 ~~Execution of client orders~~ , paragraph 1 is replaced by the following: ‘1. Systematic internalisers shall make public their quotes on a regular and continuous basis during normal trading hours. They may update their quotes at any time. They shall be allowed, under exceptional market conditions, to withdraw their quotes. ~~The quotes shall be made public in a manner which is easily accessible to other market participants on a reasonable commercial basis.~~ Member States shall require that firms that meet the definition of systematic internaliser notify their competent authority. Such notification shall be transmitted to ESMA. ESMA shall establish a list of all SIs in the Union. Member States shall require that firms that meet the definition of systematic internaliser provide the competent authority with a detailed description of the functioning of the systematic internaliser, including any links to or participation by a regulated market, an MTF, an OTF or a systematic internaliser owned by the same investment firm, and a list of their members, participants and/or users. Competent authorities shall make that information available to ESMA on request. Member States shall require that firms that meet the definition of systematic internaliser establish and implement transparent and non-discriminatory rules and objective 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.

Amendment 299 #

Proposal for a regulation
Article 1 – paragraph 8 a (new)

Regulation (EU) No 600/2014
Article 15 – paragraph 4

(b) paragraph 4 is deleted.;

Amendment 300 #

Proposal for a regulation
Article 1 – paragraph 8 a (new)

Regulation (EU) No 600/2014
Article 15 – Paragraph 4

(b) In Article 15, paragraph 4 is deleted.;

Amendment 301 #

Proposal for a regulation
Article 1 – paragraph 8 a (new)

Regulation (EU) No 600/2014
Article 15 – paragraph 5

5. The Commission shall be empowered to adopt delegated acts in accordance with Article 50, clarifying what constitutes a reasonable commercial basis to make quotes public as referred to in paragraph 1. (c) paragraph 5 is replaced by the following: ‘5. ESMA shall develop draft implementing technical standards to determine the content and format of the description and notification referred to in paragraph 1. ESMA shall submit those draft implementing technical standards to the Commission by [six months after the date of entry into force of this amending Regulation.] Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.’;

Amendment 302 #

Proposal for a regulation
Article 1 – paragraph 8 a (new)

(c)In Article 15, paragraph 5 is replaced by the following: ‘5. The Commission shall be empowered to adopt delegated acts in accordance with Article 50, clarifying what constitutes a reasonable commercial basis to make quotes public as referred to in paragraph 1. ESMA shall develop draft implementing technical standards to determine the content and format of the description and notification referred to in paragraph 1. ESMA shall submit those draft regulatory technical standards to the Commission by ... [six months after the date of entry into force of this amending Regulation. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.

Amendment 303 #

Proposal for a regulation
Article 1 – paragraph 8b

Regulation (EU) 2016/1011
Article 16

(31) Article 16 is deleted;

Amendment 304 #

Proposal for a regulation
Article 1 – paragraph 8 f (new)

Regulation (EU) No 600/2014
Article 16

Article 16 is amended as follows: (a) paragraph 1 is replaced by the following: ‘The competent authorities shall check the following: (a) that ~~investment firms regularly update bid and offer prices published in accordance with Article 14 and maintain prices which reflect the prevailing market conditions; (b) that investment firms~~firms that meet the definition of systematic internaliser comply with the conditions for order execution laid down in Article 15(1); (b) that firms that meet the definition of systematic internaliser comply with the conditions for price improvement laid down in Article 15(2).’;

Amendment 305 #

Proposal for a regulation
Article 1 – paragraph 8 g (new)

Regulation (EU) No 600/2014
Article 16 – Paragraph 1

(8 b) "Article 16 is amended as follows: (a) paragraph 1 is replaced by the following: ‘The competent authorities shall check the following: (a) that ~~investment firms~~firms that meet the definition of systematic internaliser regularly update bid and offer prices published in accordance with Article 14 and maintain prices which reflect the prevailing market conditions; (baa) that ~~investment firms~~firms that meet the definition of systematic internaliser comply with the conditions for order execution laid down in Article 15(1); (b) that firms that meet the definition of systematic internaliser comply with the conditions for price improvement laid down in Article 15(2). "

Amendment 306 #

Proposal for a regulation
Article 1 – paragraph 8c

Regulation (EU) 2016/1011
Article 17

(32) Article 17 is deleted;

Amendment 307 #

Proposal for a regulation
Article 1 – paragraph 8 h (new)

Regulation (EU) No 600/2014
Article 17 – Paragraph 3

(8 c) Article 17 is amended as follows: (a) paragraph 3 is replaced by the following: ‘3. In order to ensure the efficient valuation of shares, depositary receipts, ETFs, certificates and other similar financial instruments and maximise the possibility for investment firms to obtain the best deal for their clients, the Commission shall adopt delegated acts in accordance with Article 50 specifying: (a) the criteria specifying when a quote is published on a regular and continuous basis and is easily accessible as referred to in Article 15(1) as well as the means by which investment firms may comply with their obligation to make public their quotes, which shall include the following possibilities: i. through the facilities of any regulated market which has admitted the financial instrument in question to trading; ii. through an APA; iii. through proprietary arrangements; (b) the criteria specifying those transactions where execution in several securities is part of one transaction or those orders that are subject to conditions other than current market price as referred to in Article 15(3); (c) the criteria specifying what can be considered as exceptional market conditions that allow for the withdrawal of quotes as well as the conditions for updating quotes as referred to in Article 15(1); (dthose transactions where execution in several securities is part of one transaction or those orders that are subject to conditions other than current market price as referred to in Article 15(3); (b) the criteria specifying when the number and/or volume of orders sought by clients considerably exceeds the norm as referred to in paragraph 2.; (ec) the criteria specifying when prices fall within a public range close to market conditions as referred to in Article 15(2).’;

Amendment 308 #

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

Regulation 600/2014
Article 21- paragraph 1

In Article 21, paragraph 1 is replaced by the following: "1. Investment firms which, either on own account or on behalf of clients, conclude transactions in bonds, structured finance products, and emission allowances ~~and derivatives~~ traded on a trading venue shall make public the volume and price of those transactions and the time at which they were concluded. That information shall be made public through an APA."

Amendment 309 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 9

Regulation 600/2014 (EU)
Article 17a – Paragraph 2

2. The application of the tick sizes set in accordance with Article 49 of Directive 2014/65/EU shall not prevent systematic internalisers from matching orders large in scale at mid-point within the current bid and offer prices. ~~Matching orders at mid- point within the current bid and offer prices below large in scale but above twice the standard market size shall be allowed in so far as those tick sizes are complied with.;~~

Amendment 310 #

Proposal for a regulation
Article 1 – paragraph 9

Regulation (EU) No 600/2014
Article 17a – paragraph 2

2. The application of the tick sizes set in accordance with Article 49 of Directive 2014/65/EU shall not prevent systematic internalisers from matching orders large in scale at mid-point within the current bid and offer prices. Matching orders at mid- point within the current bid and offer prices below large in scale but above t~~wic~~he th~~e standard market size~~reshold determined by ESMA in accordance with Article 4(6)(f) shall be allowed in so far as those tick sizes are complied with.;

Amendment 311 #

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

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

~~4. C~~(9 a) In Article 21, paragraph 4 is replaced as following: Only competent authorities ~~shall be able to~~can authorise investment firms to provide for deferred publication, or may request the publication of limited details of a transaction or details of several transactions in an aggregated form, or a combination thereof, during the time period of the deferral or may allow the omission of the publication of the volume for individual transactions during an extended time period of deferral, or in the case of non-equity financial instruments that are not sovereign debt, may allow the publication of several transactions in an aggregated form during an extended time period of deferral, or in the case of sovereign debt instruments may allow the publication of several transactions in an aggregated form for an indefinite period of time, and may temporarily suspend the obligations referred to in paragraph 1 on the same conditions as laid down in Article 11. Where the measures adopted pursuant to Article 11 provide for deferred publication and publication of limited details or details in an aggregated form, or a combination thereof, or for omission of the publication of the volume for certain categories of transactions in bonds, structured finance products, emission allowances and derivatives traded on a trading venue, that possibility shall also apply to those transactions when undertaken outside trading venues.

Amendment 312 #

Nicola BEER, Billy KELLEHER

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

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

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

Amendment 313 #

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

Regulation (EU) No 600/2014
Article 18

(9 a) in Article 18, paragraph 1 is deleted.

source: 737.291

2022/10/21 ECON 152 amendments...

Amendment 314 #

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

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

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

Amendment 315 #

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

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

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

Amendment 316 #

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

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

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

Amendment 317 #

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

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

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

Amendment 318 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Caroline NAGTEGAAL

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

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

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

Amendment 319 #

Proposal for a regulation
Article 1 – paragraph 10

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

1. Market data contributors shall, with regard to shares, ETFs and bonds that are traded on a trading venue, and with regard to OTC derivatives as defined in Article 2(7) of Regulation (EU) No 648/2012 that are subject to the clearing obligation as referred to in Article 4 of that Regulation,bonds provide the CTP with all the market data as set out in Article 22b(2) as needed for the CTP to be operational. Those market data shall be provided in a harmonised format, through a high quality transmission protocol, and as ~~close to real- time as is technically possible~~no later than one minute after the transaction by all trading venues.

Amendment 320 #

Proposal for a regulation
Article 1 – paragraph 10

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

1. Market data contributors shall, with regard to shares, ETFs and bonds that are traded on a trading venue, and with regard to OTC derivatives as defined in Article 2(7) of Regulation (EU) No 648/2012 that are subject to the clearing obligation as referred to in Article 4 of that Regulation, provide the CTP with all the market data as set out in Article 22b(2) as needed for the CTP to be operational. Those market data shall be provided in a harmonised format, through a high quality transmission protocol, and ~~as close to real-time as is technically possible~~no later than one minute after the transaction is executed.

Amendment 321 #

Proposal for a regulation
Article 1 – paragraph 10

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

1. Market data contributors shall, with regard to shares, ETFs and bonds that are traded on a trading venue, and with regard to OTC derivatives as defined in Article 2(7) of Regulation (EU) No 648/2012 that are subject to the clearing obligation as referred to in Article 4 of that Regulation, provide the CTP with all the market data as set out in Article 22b(2) as needed for the CTP to be operational. Those market data shall be provided maximum 15 minutes after the transaction, in a harmonised format, through a high quality transmission protocol~~, and as close to real-time as is technically possible~~.

Amendment 322 #

Proposal for a regulation
Article 1 – paragraph 10

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

1. MAll market data contributors shall, with regard to shares, ETFs and bonds that are traded on a trading venue, and with regard to OTC derivatives as defined in Article 2(7) of Regulation (EU) No 648/2012 that are subject to the clearing obligation as referred to in Article 4 of that Regulation, provide the CTP with all the market data as set out in Article 22b(2) as needed for the CTP to be operational. Those market data shall be provided in a harmonised format, through a high quality transmission protocol, and ~~as close to real-time as is technically possibl~~with a delay of one minute.

Amendment 323 #

Proposal for a regulation
Article 1 – paragraph 10

1. MAll the market data contributors shall, with regard to shares, ETFs and bonds that are traded on a trading venue, and with regard to OTC derivatives as defined in Article 2(7) of Regulation (EU) No 648/2012 that are subject to the clearing obligation as referred to in Article 4 of that Regulation, provide the CTP with all the market data as set out in Article 22b(2) as needed for the CTP to be operational. Those market data shall be provided in a harmonised format, through a high quality transmission protocol, and as close to real-time as is technically possible.

Amendment 324 #

Proposal for a regulation
Article 1 – paragraph 10

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

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

Amendment 325 #

Proposal for a regulation
Article 1 – paragraph 10

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

la. All market data contributors will provide the CTPs with all core data in real time. However regulated markets and SME growth markets whose average daily trading volume of shares represents less than 1 % of the average daily trading volume of the Union, and who do not form part of a market operator group that operates regulated markets that collectively represent more than 2% of the average daily trading volume in the union, shall not be required to permit their pretrade market data to be published by the CTP in real time;

Amendment 326 #

Proposal for a regulation
Article 1 – paragraph 10

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

1a. All market data contributors will provide the CTP with all core data in real time. However, regulated markets whose average daily trading volume of shares represents less than 1 % of the average daily trading volume of the Union, and who do not form part of a market operator group that operates regulated markets that collectively represent more than 2% of the average daily trading volume in the union shall not be required to permit their pre trade market data to be published by the CTP in real time;

Amendment 327 #

Proposal for a regulation
Article 1 – paragraph 10

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

1 a. Regulated markets or MTFs whose average daily trading volume of shares represents less than 1 % of the average daily trading volume of the Union shall not be required to provide market data to the CTP;

Amendment 328 #

Proposal for a regulation
Article 1 – paragraph 10

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

Amendment 329 #

Proposal for a regulation
Article 1 – paragraph 10

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

1 a. Regulated markets whose average daily trading volume of shares represents less than 1 % of the average daily trading volume of the Union shall not be required to provide market data to the CTP;

Amendment 330 #

Proposal for a regulation
Article 1 – paragraph 10

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

1 b. Regulated markets whose average daily trading volume of shares exceeds 1% of the average trading volume of the Union and which are not part of a group comprising or having close links with a regulated market that would be above the 1% threshold of the total value of equity value traded within the EU, shall not be required to provide market data to the CTP if the regulated market accounts for more than 85 % of the average daily trading volume of shares that were first admitted to trading on that regulated market;

Amendment 331 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 2a (new), 2b (new)

2a. Regulated markets and SME growth markets whose average daily trading volume of shares exceeds 1 % of the average trading volume of the Union, and who do not form part of a market operator group that operates regulated markets that collectively represent more than 2% of the average daily trading volume in the union, shall not be required to permit their pre-trade market data to be published by the CTP in real time if: (i) the regulated market or SME growth market accounts for more than 85% of the average daily trading volume of shares that were first admitted to trading on that regulated market or SME growth market; or (ii) the average daily trading volume of shares first admitted on a regulated market on MTFs and systematic internalisers collectively is 15% or less of the average daily trading volume of those shares. ESMA shall publish on its website a list of regulated markets exempted from permitting their pre-trade market data to be published by the CTP in real time and shall update that list regularly 2b. Notwithstanding paragraphs 1a and 2a, smaller regulated markets and SME growth markets may decide to permit their pre-trade market data to be published by the CTP in real time, subject to the provisions of paragraph 1, by notifying ESMA and the CTP. Those regulated markets that decide to subject themselves to the requirement to provide market data in accordance with paragraph 1 should start providing market data to the CTP within 30 working days of the date of the notification to ESMA.

Amendment 332 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22 a – paragraph 2 a (new)

2 a. Regulated markets whose average daily trading volume of shares exceeds 1 % of the average trading volume of the Union, and who do not form part of a market operator group that operates regulated markets that collectively represent more than 2% of the average daily trading volume in the union, shall not be required to permit their pre-trade market data to be published by the CTP in real time if: (i) the regulated market accounts for more than 85% of the average daily trading volume of shares that were first admitted to trading on that regulated market; or (ii) the average daily trading volume of shares first admitted on a regulated market on MTFs and systematic internalisers collectively is 15% or less of the average daily trading volume of those shares. ESMA shall publish on its website a list of regulated markets exempted from permitting their pre-trade market data to be published by the CTP in real time and shall update that list regularly.

Amendment 333 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 2 a (new)

2 a. Regulated markets or MTFs whose average daily trading volume of shares exceeds 1 % of the average trading volume of the Union shall not be required to provide market data to the CTP if: (i) the regulated market is not part of a group comprising or having close links with a regulated market that would be above the 1% threshold of the total value of equity value traded within the EU; or (ii) the regulated market accounts for equal to or more than 85% of the average annual traded volume of shares that were first admitted to trading on the regulated market. ESMA shall publish on its website a list of regulated markets exempted from providing market data to the CTP and shall update that list regularly.

Amendment 334 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 2a (new)

2 a. Regulated markets whose average daily trading volume of shares exceeds 1 % of the average trading volume of the Union shall not be required to provide market data to the CTP if: (i) the regulated market accounts for more than 70 % of the average daily trading volume of shares that were first admitted to trading on that regulated market; or (ii) the average daily trading volume of shares first admitted on a regulated market on MTFs and systematic internalisers is 20 % or less of the average daily trading volume of those shares. ESMA shall publish on its website a list of regulated markets exempted from providing market data to the CTP and shall update that list regularly.

Amendment 335 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 2 b (new)

2 b. Notwithstanding paragraphs 2 and 2a, smaller regulated markets may decide to provide market data to the CTP, subject to the provisions of paragraph 1, by notifying ESMA. Those regulated markets that decide to subject themselves to the requirement to provide market data in accordance with paragraph 1 should start providing market data to the CTP within 30 working days of the date of the notification to ESMA.

Amendment 336 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 2 b (new)

2 b. Notwithstanding paragraphs 1a and 2a, smaller regulated markets may decide to permit their pre-trade market data to be published by the CTP in real time, subject to the provisions of paragraph 1, by notifying ESMA and the CTP.

Amendment 337 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 2 c (new)

2 c. Each CTP shall be free to choose, from among the types of connection and formats that the market data contributors offer to other users, which connection it wishes to use for the provision of those data. Market data contributors shall not receive any remuneration for providing the connectivity other than the revenue sharing for shares, as specified in the conditions for appointment of the CTP in the selection process laid down in 27da.

Amendment 338 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 3

3. Market data contributors shall, with regard to transactions in the instruments referred to in paragraph 1 that are concluded by investment firms outside a trading venue, provide the CTP with the market data concerning those transactions through an APA. Market data providers shall, with regard to the best bids and offers in shares provided by investment firms outside a trading venue, provide the CTP with the market data concerning those bids and offers either directly or through an APA.

Amendment 339 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 3

3. Market data contributors shall, with regard to transactions in the instruments referred to in paragraph 1 that are concluded by investment firms outside a trading venue and with regard to the best bids and offers in shares, provide the CTP with the market data concerning those transactions either directly or through an APA.

Amendment 340 #

Raffaele FITTO

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 4

4. Market data contributors shall ~~not~~ receive ~~any~~ remuneration for the market data provided ~~other than the revenue sharing as referred to in Article 27da(2), point (c)~~to the CTP.

Amendment 341 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 4

4. Market data contributors shall ~~not~~ receive ~~any~~ remuneration for the market data provided ~~other than~~according to the revenue sharing as referred to in Article 27~~da(2), point~~ h(1)(c).

Amendment 342 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 4

4. Market data contributors shall not receive any remuneration for the market data provided ~~other than the revenue sharing as referred to in Article 27da(2), point~~ with a 15 minutes delay. When the delay of data provided to the consolidated tape becomes lower than 15 minutes, remuneration will be provided in accordance with Article 27h(1)(c).

Amendment 343 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 4

4. Market data contributors shall not receive any remuneration for the market data provided other than the revenue sharing as referred to in Article 27~~da(2),~~h (1) point (c).

Amendment 344 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22a – paragraph 5 a (new)

5 a. Competent authorities shall monitor the data quality provided to the CTP by market data contributors. Where data quality is deemed insufficient, competent authorities shall take the necessary measures, including sanctions as provided by Article 70 of [include reference to Mifid] and Title VIa, Chapter 2 of this Regulation

Amendment 345 #

Proposal for a regulation
Article 1 – paragraph 10

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

Amendment 346 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 10

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

Amendment 347 #

Proposal for a regulation
Article 1 – paragraph 10

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

Amendment 348 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 10

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

1. The Commission shall set up an expert stakeholder group by [OP add 3 months as of entry into force] to provide advice on the quality and the substance of market data, the common interpretation of market data and the quality of the transmission protocol referred to in Article 22a(1). The expert stakeholder group shall provide advice on a yearly basis. That advice shall be made public. The expert stakeholder group shall be composed of Members with a sufficiently wide range of expertise, skills, knowledge and background to provide adequate advice. Members of the expert stakeholder group shall be selected following an open and transparent selection procedure. In making its decision, the Commission shall ensure an appropriate reflection of diversity of the financial sector, geographical and gender balance and representation of stakeholders across the Union. Members of the expert stakeholder group shall elect a Chair from among its members. The position of the Chair shall be held for a period of two years. The European Parliament may invite the Chair of the expert stakeholder group to make a statement before it and answer any questions from its members whenever so requested.

Amendment 349 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22b – paragraph 2 – first subparagraph

2. ~~The Commission shall be empowered to ad~~ESMA should developt d~~elegated acts in accordance with Article 50 to specify the quality and the substance of the market data and the quality of the transmission protocol~~raft regulatory standards.

Amendment 350 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22b – Paragraph 2– first subparagraph

2. The Commission shall be empowered to adopt delegated acts in accordance with Article 50 to specify the quality and the substance of the market data ~~and~~, the quality of the transmission protocol, measures to address erroneous trade reporting and enforcement standards in relation to data quality.

Amendment 351 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22b – paragraph 2 – second subparagraph – introductory part

Those ~~delegated act~~regulatory technical standards shall in particular specify all of the following:

Amendment 352 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22b – paragraph 2 – second subpagraph – point b a (new)

(b a) what constitutes the transmission of data “as close to real time as technically possible’

Amendment 353 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22b – paragraph 2 – third subparagraph

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 the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. For the purposes of the first subparagraph, the Commission shall take into account the advice from ESMA and from the technical expert group established in accordance with paragraph 2, international developments, and standards agreed at Union or international level. The Commission shall ensure that the ~~delegated act~~regulatory technical standards adopted take into account the reporting requirements laid down in Articles 3, 6, 8, 10, 14, 18, 20, 21 and 27g.

Amendment 354 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22b – Paragraph 2 – third subparagraph

For the purposes of the first subparagraph, the Commission shall take into account the advice from ESMA ~~and from the technical exp~~, ESMA's stakeholdert group ~~established in accordance with paragraph 2~~s, feedback received via public consultations, international developments, and standards agreed at Union or international level. The Commission shall ensure that the delegated acts adopted take into account the reporting requirements laid down in Articles 3, 6, 8, 10, 14, 18, 20, 21 and 27g.

Amendment 355 #

Proposal for a regulation
Article 1 – paragraph 10

Regulation (EU) No 600/2014
Article 22b – paragraph 2 a (new)

2 a. ESMA shall be empowered to develop regulatory technical standards providing the framework for the creation of a separate governance body mandated to oversee data quality. This will include i) data standard development ii) real-time monitoring of data contribution iii) disciplinary actions: fining and sanctioning powers

Amendment 356 #

Proposal for a regulation
Article 1 – paragraph 11

(a a) those trades are non-systematic, ad-hoc, irregular and infrequent; or

Amendment 357 #

Nicola BEER, Ondřej KOVAŘÍK, Engin EROGLU, Billy KELLEHER

Proposal for a regulation
Article 1 – paragraph 11

Regulation (EU) No 600/2014
Article 23 – paragraph 1 – second subparagraph

ESMA shall publish a ~~list on its website containing the shares with an EEA ISIN subject to the share trading obligation and shall update that list regularly~~s quickly as possible, on the Financial Instruments Reference Data System (FIRDS) publicly accessible a list on its website, the shares with an EEA ISIN whose trades take place on a regulated market, MTF, systematic internaliser and the dates and times of the trades.;

Amendment 358 #

Pascal CANFIN

Proposal for a regulation
Article 1 – paragraph 11 a (new)

Regulation (EU) No 600/2014
Article 25 – paragraph 1

~~1. Investment firms shall keep at the disposal of the competent authority, for five years, the relevan~~(11 a) in Article 25, paragraph 1 is replaced by the following: ‘1. Member States shall require investment firms to ensure and demonstrate to competent authorities on request that dnata relating to all orders and all transactions in financial instruments which they have carried out, whether on own account or on behalf of a client. In the case of transactions carried out on behalf of clients,ural persons giving investment advice or information about financial instruments, investment services or ancillary services to clients on behalf of the investment firm possess the rnec~~ords shall contain all the information and details of the identity of the~~essary knowledge and competence, including in the field of sustainability preferences of clients, and the information required under Directive 2005/60/EC of the European Parliament and of the Council ( 10 ). ESMA may request access to that information in accordance with the procedure and under the conditions set out in Article 35 of Regulation (EU) No 1095/2010to fulfil their obligations under Article 24 and this Article. Member States shall publish the criteria to be used for assessing such knowledge and competence.

Amendment 359 #

Pascal CANFIN

Proposal for a regulation
Article 1 – paragraph 11 b (new)

Regulation (EU) No 600/2014
Article 25 – paragraph 3a (new)

(11 b) the following paragraph is inserted: ‘3a. When providing investment advice to retail clients, investment firms shall amongst the products proposed include at least one product that is covered by Article 9(1) or 9(2) of Regulation (EU)2019/2088.’

Amendment 360 #

Proposal for a regulation
Article 1 – paragraph 11 b (new)

Regulation (EU) No 600/2014
Article 26 – paragraph 1

(11 b) in Article 26, paragraph 1, is replaced by the following: "1. Investment firms which execute transactions in financial instruments shall report complete and accurate details of such transactions to the competent authority as quickly as possible, and no later than the close of the following working day. ~~(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014L0065-20220228)~~Following an impact assessment of the European Commission, further alignements to other regulations such as UCITS, AIFMD or EMIR can be advantageous. However, additional reporting and unproportionate requirements shall not be the outcome of such a review. Or. en

Amendment 361 #