22 Amendments of Christophe HANSEN related to 2020/0267(COD)
Amendment 138 #
Proposal for a regulation
Recital 1
Recital 1
(1) The European Commission’s communication on a Digital Finance Strategy32 aims to ensure that the Union financial services legislation is fit for the digital age and contributes to a future- ready economy that works for the people, including by enabling the use of innovative technologies. The Union has a policy interest in exploring, developing and promoting the uptake of transformative technologies in the financial sector, such as blockchain and distributed ledger technology (‘DLT’). Crypto-assets are one of the main DLT applications for finance. _________________ 32Communication from the Commission to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the committee of the Regions on a Digital Finance Strategy for EU COM(2020)591
Amendment 149 #
Proposal for a regulation
Recital 4
Recital 4
(4) At the same time, regulatory gaps exist due to legal, technological and operational specificities related to the use of DLT and crypto-assets that qualify as financial instruments. For instance, there are no transparency, reliability and safety requirements imposed on the protocols and smart contracts underpinning crypto-assets that qualify as financial instruments. The underlying technology could also pose some novel forms of cyber risks that are not appropriately addressed by existing rules and practices. Several projects for the trading and post-trading of crypto-assets qualifying as financial instruments have been developed in the Union, but few are already in operation or they have limited scale. Given this limited experience as regards the trading and post-trading of transactions in crypto-assets that qualify as financial instruments, it would currently be premature to bring significant modifications to the Union financial services legislation to enable the full deployment of such crypto-assets and their underlying technology. At the same time, the creation of financial market infrastructures for crypto-assets that qualify as financial instruments is currently constrained by some requirements embedded in the Union’s financial services legislation that would not be fully adapted to crypto-assets qualifying as financial instruments and to the use of DLT. For instance, trading platforms for crypto- assets usually give direct access to retail investors, while traditional trading venues usually give access through financial intermediaries.
Amendment 155 #
Proposal for a regulation
Recital 5
Recital 5
(5) In order to allow for the development of crypto-assets that qualify as financial instruments and DLT, while preserving a high level of financial stability, market integrity, transparency and investor protection, it would be useful to create a pilot regime for DLT market infrastructures. A pilot regime for DLT market infrastructures should allow such DLT market infrastructures to be temporarily exempted from some specific requirements under the Union financial services legislation that could otherwise prevent them from developing solutions for the trading and settlement of transactions in crypto-assets that qualify as financial instruments. The pilot regime should also enable the European Securities and Markets Authorities (ESMA) and competent authorities to gain experience on the opportunities and specific risks crelated byto crypto-assets that qualify as financial instruments, and by their underlying technology. The experience gained with the pilot regime is intended to identify possible practical proposals for a suitable regulatory framework in order to make targeted adjustments to existing Union law regulating the issuance, safekeeping and asset servicing, trading and settlement of financial instruments based on DLT.
Amendment 178 #
Proposal for a regulation
Recital 11
Recital 11
(11) A DLT MTF or a CSD operating a DLT securities settlement system should only admit to trading or record DLT transferable securities on theira distributed ledger. DLT transferable securities should be crypto-assets that qualify as ‘transferable securities’ within the meaning of Directive 2014/65/EU (the Market in Financial Instruments Directive, MiFID II) and that are issued, transferred and stored on a distributed ledger.
Amendment 188 #
Proposal for a regulation
Recital 14
Recital 14
(14) A DLT MTF should be able to request one or several exemptions on a temporary basis, as listed under this Regulation, to be granted by the competent authority after ESMA has issued a non- binding opinion, if it complies with the conditions attached to such exemptions as well as additional requirements set under this Regulation to address novel forms of risks raised by the use of DLT. The DLT MTF should also comply with any compensatory measure imposed by the competent authority in order to meet the objectives pursued by the provision for which an exemption has been requested.
Amendment 223 #
Proposal for a regulation
Recital 33
Recital 33
(33) The specific permission granted to a DLT market infrastructure should follow the same procedures as the authorisation of a traditional MTF, or a CSD where such a CSD is seeking to operate a new securities settlement system. However, when applying for a permission, the applicant DLT infrastructure should indicate the exemptions it would be seeking. Before granting a permission to a DLT market infrastructure, the competent authority should consult ESMA. ESMA should issue a non-binding opinion and make any non- binding recommendations on the application or the exemptions requested. ESMA should also consult the competent authorities of the other Member States. Where issuing its non-binding opinion, ESMA should aim at ensuring financial stability, market integrity and investor protection. In order to ensure the level- playing field and fair competition across the single market, ESMA’s non-binding opinion should also aim at ensuring the consistency and proportionality of the exemptions granted by different competent authorities across the Union.
Amendment 225 #
Proposal for a regulation
Recital 33 a (new)
Recital 33 a (new)
(33 a) Access to the pilot regime should not be limited to incumbents, but instead should be open to new entrants. Thus, where an entity that is not authorised under MIFID II or under the Central Securities Depositories Regulation applies for an authorisation under those legal acts and, at the same time, applies for a specific permission under this Regulation, the competent authority should, in assessing the application for authorisation under MIFID II or under the Central Securities Depositories Regulation, only verify compliance with requirements in respect of which an exemption has not been requested and granted under the pilot regime. In such cases, authorisation under MIFID II or under the Central Securities Depositories Regulation should be given only for the purpose of operating a DLT market infrastructure under this Regulation.
Amendment 237 #
Proposal for a regulation
Recital 40
Recital 40
(40) Five years after the entry into application of this Regulation, ESMA, after consulting the national competent authorities, should report to the Commission on this pilot regime for DLT market infrastructures, including on the potential benefits linked to the use of DLT, the risks raised and the technical difficulties. Based on ESMA’s report, the Commission should report to the Council and European Parliament. This report should assess the costs and benefits of extending this regime on DLT market infrastructures for another period of time, extending this regime to new type of financial instruments, making this regime permanent with or without modifications, bringing modifications to the Union financial services legislation or terminating this regime.
Amendment 243 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
(1) This Regulation lays down requirements on multilateral trading facilities and securities settlement systems using distributed ledger technology ‘DLT market infrastructures’, which are granted with a specific permissions to operate in accordance with Article 7 and Article 8.
Amendment 246 #
Proposal for a regulation
Article 1 – paragraph 2 – point f
Article 1 – paragraph 2 – point f
(f) cooperation between operators of DLT market infrastructures, national competent authorities and ESMA.
Amendment 250 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1 a (new)
Article 2 – paragraph 1 – point 1 a (new)
(1 a) the owner and accountable entity in charge of the DLT network should provide the information related to the underlying technical approach of DLT infrastructure and be liable in the event of any issues or disruptions. A delineation between permissioned and permission-less DLT infrastructures should be introduced in the text as liabilities linked to the two types of DLT infrastructures could be different;
Amendment 256 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
(5) ‘DLT transferable securities’ means ‘transferable securities’ within the meaning of Article 4(1)(44) (a) and (b) of Directive 2014/65/EU, including depositary receipts, that are issued, recorded, transferred and stored using a DLT;
Amendment 259 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6 a (new)
Article 2 – paragraph 1 – point 6 a (new)
(6 a) “DLT units of collective investment undertakings” means units of collective investment undertakings mentioned in Annex III, section C, item 3 of Directive 2014/65/EU that are issued, recorded, transferred and stored using a DLT;
Amendment 272 #
Proposal for a regulation
Article 3 – paragraph 1 – point a
Article 3 – paragraph 1 – point a
(a) shares, the issuer of which has a market capitalisation or a tentative market capitalisation of less than EUR 2500 million; or
Amendment 274 #
Proposal for a regulation
Article 3 – paragraph 1 – point b
Article 3 – paragraph 1 – point b
(b) convertible bonds, covered bonds, corporate bonds, sovereign bonds, other public bonds and other bonds, with an issuance size of less than EUR 500 million.
Amendment 278 #
Proposal for a regulation
Article 3 – paragraph 1 – point b a (new)
Article 3 – paragraph 1 – point b a (new)
(b a) DLT ETF units, UCITS units, investing in the types of instruments referred to in points (a) and (b).
Amendment 283 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
Amendment 333 #
Proposal for a regulation
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) complies with the conditions set out in paragraphs 2 to 7 and with any additional compensatory measures that the competent authority or ESMA after consulting the national competent authority, which granted the specific permission may deem appropriate in order to meet the objectives pursued by the provisions from which an exemption is requested or to ensure investor protection, market integrity and/or financial stability.
Amendment 405 #
Proposal for a regulation
Article 7 – paragraph 3 – introductory part
Article 7 – paragraph 3 – introductory part
3. BeforeAfter deciding on an application for a specific permission to operate a DLT MTF under this Regulation, the competent authority of the home Member State shall notify and provide all relevant information on the DLT MTF to ESMA, an explanation of the exemptions requested, their justifications and any compensatory measures proposed by the applicant or required by the competent authoritythe application to operate on the DLT MTF to ESMA for information purposes and in order to fulfil the obligations set out in Article 7, paragraph 5, second subparagraph.
Amendment 452 #
Proposal for a regulation
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. Without prejudice to the application of any relevant provisions of Directive 2014/65/EU and Regulation (EU) No 909/2014, the operators of DLT market infrastructures shall cooperate with the competent authorities which are entrusted with granting specific permissions under this Regulation and with ESMA.
Amendment 455 #
Proposal for a regulation
Article 9 – paragraph 1 – subparagraph 1 – introductory part
Article 9 – paragraph 1 – subparagraph 1 – introductory part
In particular, immediately upon becoming aware of any of the matters listed below, the operators of DLT market infrastructures shall notify, the said competent national authorities and ESMA, thereof. Such matters include, without limitation:
Amendment 470 #
Proposal for a regulation
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. Five years from the entry into application of this Regulation, at the latest, ESMA shall present a report to the Commission on: