4 Amendments of Ralf SEEKATZ related to 2021/0385(COD)
Amendment 104 #
Proposal for a regulation
Title 1
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 receivrules governing payments for forwarding client orders (Text with EEA relevance)
Amendment 174 #
Proposal for a regulation
Recital 32
Recital 32
(32) Financial intermediaries should strive to achieve the best possible price and the highest possible likelihoodquality 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 fFinancial 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 paymentadhere to strict governance and transparency rules.
Amendment 450 #
Proposal for a regulation
Article 1 – paragraph 26
Article 1 – paragraph 26
Regulation (EU) No 600/2014
Article 39 a (new) – title
Article 39 a (new) – title
Article 39a Ban on payment forRules on execution and forwarding of retail client orders for execution
Amendment 456 #
Proposal for a regulation
Article 1 – paragraph 26
Article 1 – paragraph 26
Regulation (EU) No 600/2014
Article 39a
Article 39a
(1) Investment firms acting on behalf of clients shall not receive any fee or commission or non-monetary benefits from any third party for forwarding client orders to such third party for their execution.; , unless the investment firm complies with all of the following conditions: i) the investment firm obtains the client’s explicit consent to the arrangement; ii) the investment firm complies with the obligation to execute orders on terms most favourable to the client as provided for in Article 27 of Directive 2014/65/EU at all times; iii) the client is informed about the applicable costs and charges in line with Article 24(4) of Directive2014/65/EU and Article 50 of Commission Delegated Regulation (EU) 2017/565; iv) the fee, commission or non-monetary benefit meets the quality enhancement test as provided for in Article 11 of Commission Delegated Directive (EU) 2017/593; (2) An investment firm that routes client orders to a particular execution venue as defined in Article 64(1) of Commission Delegated Regulation (EU) 2017/565 in exchange of a payment from such a venue shall make available to the public on a annual basis, and within one month after the end of the year in consideration, a report that discloses at least: (i) for each of the top five execution venues the net aggregate amount of any payment for order flow received from that execution venue during the year in consideration, and the number and value of orders routed to such execution venue in exchange for this payment ; (ii) a disclosure of the material aspects of the firm's relationship with each of the top five execution venues , including a description of any arrangement for payment for order flow and a description of any terms of such arrangements that may influence a firm’s order routing decision. (3) ESMA shall develop draft regulatory technical standards to determine the content and the format of information to be published in accordance with paragraph 2 by investment firms that receive payments for order flow. ESMA shall submit those draft regulatory technical standards to the Commission by [9 months after entry into force of the 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. (4) Every year, ESMA shall publish a report analysing the content of the reports published in accordance with paragraph 2 by investment firms that receive payments for order flow. That report shall provide a detailed account of the development of the reception of payments for order flows by investment firms in the EU, and analyse whether the receipt of payment for order flow is incompatible with the requirement to execute orders from retail clients on terms most favourable to them.