36 Amendments of Frances FITZGERALD related to 2021/0385(COD)
Amendment 114 #
Proposal for a regulation
Recital 7
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 140 #
Proposal for a regulation
Recital 15
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 formatthe consistency of the content of the market data. It should be possible to changeenvisage adaptions to the substance and the format of the data within a short timeconsistency 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
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 149 #
Proposal for a regulation
Recital 20
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 ofESMA should mandate the inclusion of pre-trade data related to the best bid and offer as well as 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 toESMA should require the CTP for shares to be capable of consolidating and displaying 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 related to the first five layers of order books.
Amendment 159 #
Proposal for a regulation
Recital 22
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 admitbrings companies to the public markets, playing a crucial role in thegetting 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 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 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 revenue participation scheme is therefore considered appropriate to allow these smaller exchangeal 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 166 #
Proposal for a regulation
Recital 24
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 188 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a - point (i)
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 193 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point ii
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 198 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point iii
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 201 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point iv
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 203 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point v
Article 2 – paragraph 1 – point 36b – point a – point v
(v) on all messages, the market identifier code identifying the execution venue segment;
Amendment 205 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vi
Article 2 – paragraph 1 – point 36b – point a – point vi
(vi) on all messages, the standardised instrument identifier that applies across venues;
Amendment 207 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii
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 209 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 1
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 1
Amendment 212 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 2
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 2
Amendment 215 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 3
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 3
Amendment 218 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 4
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 4
Amendment 220 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 5
Article 2 – paragraph 1 – point 36b – point a – point vii– indent 5
Amendment 223 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point a - point (viii)
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
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36b – point b
Article 2 – paragraph 1 – point 36b – point b
Amendment 230 #
Proposal for a regulation
Article 1 – paragraph 2 – point d
Article 1 – paragraph 2 – point d
Regulation (EU) No 600/2014
Article 2 – paragraph 1 – point 36c a (new)
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 238 #
Proposal for a regulation
Article 1 – paragraph 4 – point b
Article 1 – paragraph 4 – point b
Regulation (EU) No 600/2014
Article 5 – paragraph 1
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 undersing thoese waivermechanisms 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 waiversactivate 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 245 #
Proposal for a regulation
Article 1 – paragraph 4 – point d
Article 1 – paragraph 4 – point d
Regulation (EU) No 600/2014
Article 5 (4) (b)
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 249 #
Proposal for a regulation
Article 1 – paragraph 4 – point f
Article 1 – paragraph 4 – point f
Regulation (EU) No 600/2014
Article 5 – Paragraph 7
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 263 #
Proposal for a regulation
Article 1 – paragraph 6 – point c – point ii
Article 1 – paragraph 6 – point c – point ii
Regulation (EU) No 600/2014
Article 11 – Paragraph 4 - second subparagraph - point a
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
Article 1 – paragraph 6 – point c – point ii
Regulation (EU) No 600/2014
Article 11 – Paragraph 4 - second subparagraph - point b
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
Article 1 – paragraph 6 – point c – point ii
Regulation (EU) No 600/2014
Article 11 – Paragraph 4 - second subparagraph - point c
Article 11 – Paragraph 4 - second subparagraph - point c
Amendment 269 #
Proposal for a regulation
Article 1 – paragraph 7
Article 1 – paragraph 7
Regulation (EU) No 600/2014
Article 13 – Paragraph 3
Article 13 – Paragraph 3
Amendment 325 #
Proposal for a regulation
Article 1 – paragraph 10
Article 1 – paragraph 10
Regulation (EU) No 600/2014
Article 22a – paragraph 1 a (new)
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 331 #
Proposal for a regulation
Article 1 – paragraph 10
Article 1 – paragraph 10
Regulation (EU) No 600/2014
Article 22a – paragraph 2a (new), 2b (new)
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 368 #
Proposal for a regulation
Article 1 – paragraph 15
Article 1 – paragraph 15
Regulation (EU) No 600/2014
Article 27da – paragraph 1
Article 27da – paragraph 1
1. By [OP insert date 3 months as of entry into force], ESMA shall organise a selection procedure for the appointment of the CTP for a five year term. ESMA shall organise a separate selection procedure for each of the following asset classes: shares, exchange traded funds, bonds and derivatives (or relevant subclasses of derivatives). Contribution to the consolidated tape for shares shall be mandatory.
Amendment 373 #
Proposal for a regulation
Article 1 – paragraph 15
Article 1 – paragraph 15
Regulation (EU) No 600/2014
Article 27da – paragraph 2 – point b a (new)
Article 27da – paragraph 2 – point b a (new)
(b a) the ability to receive, consolidate and disseminate pre-trade and post-trade market data for shares;
Amendment 402 #
Proposal for a regulation
Article 1 – paragraph 15
Article 1 – paragraph 15
Regulation (EU) No 600/2014
Article 27da – paragraph 4
Article 27da – paragraph 4
4. The selection of the CTP for shares shall, in addition to the criteria in paragraph 2, consider the revenue participation scheme, and in particular the formula, applicable to regulated markets that are market data contributors. ESMA shall, when considering the competing tenders, select the CTP for shares that offers the revenue participation scheme that provides a fair and just revenue compensation for the data contributed to the tape by regulated markets, in particular smaller regulated markets, with the highest amount of revenue that remains for distribution once deducted operating costs and a reasonable margin. This revenue shall be distributed in accordance with Article 27h(1)(c), and in a manner commensurate to the market data contributed according to Article 22a.
Amendment 449 #
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 for forwarding client orders for executionor execution of client orders.
Amendment 458 #
Proposal for a regulation
Article 1 – paragraph 26
Article 1 – paragraph 26
Regulation (EU) No 600/2014
Article 39a
Article 39a
1. Investment firms executing orders on behalf of a retail client shall take all necessary steps to obtain the best possible price for their clients, net of costs relating to execution, which shall include all expenses directly related to the execution of the order, including execution venue fees, clearing and settlement fees and any other fees paid to third parties involved in the execution of the order. Investment firms acting on behalf of clients shall not receive or accept any fee or commission or any monetary or non- monetary benefits from any third party for forwarding client orders to such third party for their execution.;paid or provided by any third party or a person acting on behalf of a third party in relation to the forwarding or execution of orders. 1a. The Commission shall adopt a delegated act in accordance with Article 50 by [12 months after the date of entry into force of this amending Regulation] to specify the market practices falling under the provision of the first subparagraph of this Article. The Commission shall regularly update that delegated act to account for the development of new market practices.
Amendment 465 #
Proposal for a regulation
Article 1 – paragraph 29 a (new)
Article 1 – paragraph 29 a (new)
Regulation (EU) 2016/1011
Article 2 - paragraph 2 - point d
Article 2 - paragraph 2 - point d
(29 a) in Regulation (EU) 2016/1011, Article 2, paragraph 2, point d, is amended as follows: "(d) the provision of a single reference price for any financial instrument listed in Section C of Annex I to Directive 2014/65/EU (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02016R1011-except those financial instruments in respect of which both of the following conditions apply: (i) the financial instrument is a derivative contract relating to energy; and (ii) the total notional value of financial instruments or contracts referencing the single reference price exceeds EUR 100million. (Changes to Benchmark Regulation - formatting may need to be adjusted.) Or. en 20220101&from=EN)