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2 Amendments of Antonio Maria RINALDI related to 2021/0384(COD)

Amendment 22 #
Proposal for a directive
Recital 6 a (new)
(6 a) Article 4(1), point (20), of Directive 2014/65/EU provides the definition of asystematic internaliser and subjects it to a number of qualitative criteria that determine whether an investment firm, on an organised, frequent, systematic and substantial basis, deals on own account when executing client orders outside a regulated market, an MTF or an OTF without operating a multilateral system. The quantitative criteria, related to the transaction reporting role of systematic internalisers, have led to a significant increase in the number of systematic internalisers in the Union and in the regulatory burden both on ESMA, which is required to assess the quantitative criteria for investment firms that qualify as systematic internalisers and on investment firms themselves. In particular, the regulatory burden disproportionately affects smaller investment firms, which would benefit from a lighter and more flexible regime. Article 4(1), point (20), should therefore limit the systematic internaliser regime to investment firms that meet the qualitative criteria or investment firms that choose to opt-in to the systematic internaliser regime. In order to ensure the uniform application of the definition of systematic internaliser under Article 4(1), point 20 and for reasons of clarity, legal certainty and predictability, the Commission should adopt a delegated act to establish a harmonized set of rules for the purpose of assessing whether the qualitative criteria indicating that an investment firm performs its activities on an organized, frequent, systematic and substantial basis are met. Complementing those changes, Regulation (EU) XX/XXXX22 amending Regulation (EU) No 600/2014 introduces the concept of a ‘designated reporting entity’, decoupling the systematic internaliser status from the function of making transactions public through an approved publication arrangement.
2022/10/20
Committee: ECON
Amendment 34 #
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Directive 2014/65/EU
Article 4 – paragraph 1 – point 20
(3 a. In article 4, paragraph 1, the point 20 is replaced by the following: 20) ‘systematic internaliser’ means an investment firm which, on an organised, frequent, systematic and substantial basis, deals on own account when executing client orders outside a regulated market, an MTF or an OTF without operating a multilateral system;. The frequent and systematic basis shall be measured by the number of OTC trades in the financdefinition of a systematic internaliser shall apply only where the qualitative criterial instrument carried out by thedicating that an investment firm on own account when executing client orders. The substantial basis shall be measured either by the size of the OTC trading carried out by the investment firm in relation to the total trading of the investment firm in a specifperforms its activities on an organised, frequent, systematic and substantial basis are met, or where an investment firm chooses to opt-in under the systematic financial instrument or by the size of the OTC trading carried out by the investment firm in relation to the total trading in the Union in a specific financial instrument. The definition of a systematic internaliser shall apply only where the pre-set limits for aternaliser regime. The Commission shall adopt delegated acts in accordance with Article 89 to specify the qualitative criteria indicating that an investment firm performs its activities on an organized, frequent and, systematic basis and for aand substantial basis are both crossed or where an investment firm chooses to opt-in under the systematic internaliser regime;s referred to in the second sub- paragraph.
2022/10/20
Committee: ECON