22 Amendments of Jean-Paul GAUZÈS related to 2011/0298(COD)
Amendment 269 #
Proposal for a directive
Recital 47
Recital 47
(47) These potential risks from increased use of technology are best mitigated by a combination of specific risk controls directed at firms who engage in algorithmic or high frequency trading and other measures directed at operators of trading venues that are accessed by such firms. It is desirable to ensure that all high frequency trading firms be authorised when they are a direct member of a trading venue. This should ensure they are subject to organisational requirements under the Directive and are properly supervised. In this respect, ESMA should play an important coordination role to define the appropriate tick size in order to ensure orderly markets at European level.
Amendment 300 #
Proposal for a directive
Recital 53
Recital 53
(53) Investment firms are allowed to provide investment services that only consist of execution and/or the reception and transmission of client orders, without the need to obtain information regarding the knowledge and experience of the client in order to assess the appropriateness of the service or the instrument for the client. Since these services entail a relevant reduction of clients' protections, it is appropriate to improve the conditions for their provision. In particular, it is appropriate to exclude the possibility to provide these services in conjunction with the ancillary service consisting of granting credits or loans to investors to allow them to carry out a transaction in which the investment firm is involved, since this increases the complexity of the transaction and makes more difficult the understanding of the risk involved. It is also appropriate to better define the criteria for the selection of the financial instruments to which these services should relate in order to exclude the. It is also appropriate that more attention be paid to the transparency instead of the structure of financial instruments, including like collective investment in transferable securities (UCITS), which embed a derivative or incorporate a structure which makes it difficult for the client to understand the risk involved, given that the structure and the degree of the complexity do not necessarily determine whether a financial product is risky or not. If necessary the risk that a product cannot be understood by a client, should be subject to a future overhaul on basis of an impact assessment, whereby regulated product information for investors like key investor information for UCITS should have the chance to prove its worth.
Amendment 365 #
Proposal for a directive
Recital 113 a (new)
Recital 113 a (new)
(113a) The European Commission should submit in the future Regulation on Securities Law concrete legislative proposals regarding the definition of safekeeping and administration of financial instruments that is listed in Annex I Section B indent (1), the type of EU and non-EU entities that can be licensed to perform this service and the rights and obligations of these entities in order to guarantee integrity of the securities, absolute transparency and safeguard of the final investor's rights .
Amendment 400 #
Proposal for a directive
Article 2 – paragraph 1 – point g a (new)
Article 2 – paragraph 1 – point g a (new)
(ga) public institutions which receive funds from, or hold securities for, third parties under a statutory public-interest remit and, in so doing, provide one or more investment services;
Amendment 485 #
Proposal for a directive
Article 4 – paragraph 2 – point 31
Article 4 – paragraph 2 – point 31
31) ‘Direct electronic access’ in relation to a trading venue, means an arrangement where a member or participant of a trading venue permits a person to use its trading code so the person can electronically transmit orders relating to a financial instrument directly to the trading venue. This definition includes such an arrangement whether or not it also involves the use by the person of the infrastructure of the member or participant, or any connecting system provided by the member or participant, to transmit the orders;
Amendment 560 #
Proposal for a directive
Article 16 – paragraph 7 – subparagraph 1
Article 16 – paragraph 7 – subparagraph 1
Records shall include the recording of telephone conversations or electronic communications involving, at least, connection with actual transmission of transactions concluded when dealing on own account and client orders when the services of reception and transmission of orders and execution of orders on behalf of clients are provided.
Amendment 568 #
Proposal for a directive
Article 16 – paragraph 10
Article 16 – paragraph 10
10. An investment firm shall not conclude title transfer collateral arrangements with retail clients for the purpose of securing or covering clients' present or future, actual or contingent or prospective obligations. , unless it has provided prior express written consent based on a clear, full and accurate information of the characteristics of the arrangements.
Amendment 680 #
Proposal for a directive
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
1 a. Member States shall ensure that where investment firms design new investment products or structured deposits for advice given to professional or retail clients those products are designed to meet the needs of an identified target market within the relevant category of clients (professional or retail) and that the investment firm takes reasonable steps to ensure that the investment product is marketed and distributed to clients within the target market.
Amendment 786 #
Proposal for a directive
Article 24 a (new)
Article 24 a (new)
Article 24 a 1. Member States shall require any investment firm that uses an internal trade matching system to apply to the competent authority for prior authorisation. Before granting such authorisation the competent authority shall ensure that the system: (a) forms part of the investment firm’s best execution policy; (b) does not grant any type of participant any special privileges with regard to information or order execution; (c) is not linked to any other internal trade matching system; (d) enables each participant to choose the types of counterparty with which it agrees to execute its orders; (e) is specifically identified in connection with post-trade transparency obligations. In connection with point (b), wherever appropriate, special care shall be taken to ensure that the investment firm's own-account orders are treated in exactly the same way as orders on behalf of third parties. ESMA shall develop draft implementing technical standards to establish which types of counterparty must, as a minimum requirement, identify internal order execution systems. ESMA shall submit those draft implementing technical standards to the Commission by [...]* at the latest. Power is conferred on the Commission to adopt the implementing technical standards in accordance with Article 15 of Regulation (EU) No 1095/2010. __________________ * OJ: please insert date.
Amendment 788 #
Proposal for a directive
Article 24 b (new)
Article 24 b (new)
Amendment 791 #
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. When providing investment advice or portfolio management the investment firm shall obtain the necessary information regarding the client's or potential client's knowledge and experience in the investment field relevant to the specific type of product or service, his financial situation and his investment objectives (including his risk tolerance) so as to enable the firm to recommend to the client or potential client the investment services and financial instruments that are suitable for him.
Amendment 819 #
Proposal for a directive
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
Article 25 – paragraph 3 – subparagraph 1 – point a – point iv
(iv) shares or units in UCITS excluding structured UCITS as referred to in Article 36 paragraph 1 subparagraph 2 of Commission Regulation 583/2010;
Amendment 913 #
Proposal for a directive
Chapter 4
Chapter 4
Amendment 1025 #
Proposal for a directive
Article 51 – paragraph 5 a (new)
Article 51 – paragraph 5 a (new)
5a. Member States, under the coordination of ESMA, shall require that a regulated market ensure that its fee structures are transparent, fair and non- discriminatory and that they do not create incentives to place, modify or cancel orders or to execute transactions in a way which contributes to disorderly trading conditions or market abuse. In particular, Member States, under the coordination of ESMA, shall require a regulated market to impose a higher fee for placing an order that is subsequently cancelled than an order which is executed and shall impose a higher fee on participants placing a high ratio of cancelled orders to executed orders in order to reflect the additional burden on system capacity. Member States, under the coordination of ESMA, shall allow a regulated market to adjust its fees for cancelled orders according to the length of time for which the order was maintained. ESMA shall adopt binding technical standards in order to harmonize fee structures among the different Member States.
Amendment 1033 #
Proposal for a directive
Article 51 – paragraph 7 – introductory part
Article 51 – paragraph 7 – introductory part
7. The Commission shall be empowered to adopt delegated acts in accordance with Article 94 and ESMA shall be granted the power to develop draft implementing technical standards concerning the requirements laid down in this Article, and in particular:
Amendment 1039 #
Proposal for a directive
Article 51 – paragraph 7 – point b
Article 51 – paragraph 7 – point b
(b) to set out conditions underboundaries within which trading should be halted if there isrestricted to prevent a significant price movement in a financial instrument on that market or a related market during a short period;
Amendment 1042 #
Proposal for a directive
Article 51 – paragraph 7 – point c
Article 51 – paragraph 7 – point c
(c) to set out the maximum and minimum ratio of unexecuted orders to transactions that may be adopted by regulated markets and minimum tick sizes tables that should be adopted and a mechanism for assigning each instrument to a single table;
Amendment 1277 #
Proposal for a directive
Article -92 a (new)
Article -92 a (new)
Article -92a General provisions 1. A third country entity entering into a derivative contract with a European counterparty, where that derivative has a direct, substantial and foreseeable effect within the Union within the meaning of Article 4(1)(a)(v)) of Regulation (EU) No .../... of the European Parliament and of the Council on OTC derivative transactions, central counterparties and trade repositories (EMIR), shall receive prior authorisation by ESMA where it holds itself out as dealers in derivative contracts, regularly enters into derivative contracts with counterparties as an ordinary course of business for its own account, or engages in activity causing itself to be commonly known in the trade as dealer or market maker in derivative contracts. 2. Third country entities referred to in paragraph 1 shall be registered by ESMA in the register of third country firms kept by ESMA in accordance with Article 38 of Regulation (EU) No .../... (MiFIR). 3. ESMA shall only grant the authorisation referred in paragraph 1 if it considers that the legal, supervisory and enforcement arrangements of the third country of origin of the entity meet the following conditions: (a) the investment services and activities are subject to authorisation and to effective supervision and enforcement on an ongoing basis; (b) the investment services and activities provided are subject to sufficient capital requirements and appropriate requirements applicable to shareholders and members of their management body; (c) the investment services and activities are subject to adequate organisational requirements in the area of internal control functions; (d) the investment services and activities are subject to appropriate conduct of business rules. 4. Powers are delegated to the Commission to adopt regulatory technical standards specifying (a) the information that the applicant third country entity shall provide to ESMA in its application for registration in accordance with paragraph 3; (b) the format of information to be provided in accordance with paragraph 1; (c) the criteria set out in paragraph 3. The regulatory technical standards referred to in the first subparagraph shall be adopted in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. ESMA shall submit a draft to the Commission for those regulatory technical standards by […]*. _________________ * OJ please insert date: …
Amendment 1278 #
Proposal for a directive
Article -92 b (new)
Article -92 b (new)
Amendment 1294 #
Proposal for a directive
Annex 1 – Section A – point 9
Annex 1 – Section A – point 9
Amendment 1297 #
Proposal for a directive
Annex 1 – Section A – point 10 a (new)
Annex 1 – Section A – point 10 a (new)
(10a) Algorithmic trading as defined in Article 4(2)(30) of this Directive.
Amendment 1300 #
Proposal for a directive
Annex 1 – Section B – point -1 a (new)
Annex 1 – Section B – point -1 a (new)
(-1a) Safekeeping and administration of financial instruments for the account of clients, including custodianship and related services such as cash/collateral management;