BETA

18 Amendments of Sajjad KARIM related to 2010/0251(COD)

Proposal for a regulation
Article 4 – paragraph 1

1. For the purposes of this Regulation, a natural or legal person shall be considered to have an uncovered position in a credit default swap relating to an obligation of a Member State or the Union, to the extent that the credit default swap is not serving to hedge against the risk of ~~default~~a decline in the creditworthiness of the issuer where the natural or legal person has a long position in the sovereign debt of that issuer or any long position in the debt of an issuer for which the price of its debt has a high correlation with the price of the obligation of a Member State or the Unionnother position whose value is likely to be negatively impacted by such a decline. The party under a credit default swap that is obliged to make the payment or pay the compensation in the event of a default or a credit event relating to the reference entity does not by reason of that obligation have an uncovered position for the purposes of this paragraph.

2011/01/13
Committee: JURI

Proposal for a regulation
Article 7 – paragraph 1

1. A natural or legal person who has a net short position in relation to the issued share capital of a company that has shares admitted to trading on a trading venue shall disclose to the public details of the position whenever the position reaches or falls below a relevant publication threshold referred to in paragraph 2The relevant competent authority shall publish on a daily basis details of the aggregate amount of net short positions for each share for which it has received a notification under Article 5. Such disclosure shall not identify the holder of the net short position.

2011/01/13
Committee: JURI

Proposal for a regulation
Article 7 – paragraph 2

~~2. A relevant publication threshold is a percentage that equals 0.5% of the value of the issued share capital of the company concerned and each 0.1% above that.~~deleted

2011/01/13
Committee: JURI

Proposal for a regulation
Article 7 – paragraph 3

~~3. The Commission may, by means of~~ delegated ~~acts in accordance with Article 36 and subject to the conditions of Articles 37 and 38, modify the thresholds mentioned in paragraph 2, taking into account the developments in financial markets.~~

2011/01/13
Committee: JURI

Proposal for a regulation
Article 12 – paragraph 1 – introductory part

1. A natural or legal person may only enter into a short sale of a share admitted to trading on a trading venue or a short sale of a sovereign debt instrument where one of the following conditions is fulfilled by 11.59 p.m. on the trading day on which the person enters into the short sale:

2011/01/13
Committee: JURI

Proposal for a regulation
Article 12 – paragraph 1 – point -1 (new)

(-a) the natural or legal person has re- purchased the share or sovereign debt instrument

2011/01/13
Committee: JURI

Proposal for a regulation
Article 12 – paragraph 1 – point c

(c) the natural or legal person has entered into an arrangement with a third party under which thate third party has confirmed that the share or ~~sovereign~~ debt instrument ~~has been located and reserved~~will be available for lending ~~for~~to the ~~natural or legal person so that settlement can be effected when i~~person or for settling the short sale on the date that settlement is due.

2011/01/13
Committee: JURI

Proposal for a regulation
Article 12 – paragraph 1 – point c

(c) the natural or legal person has an arrangement with a third party under which that third party has confirmed that the share or sovereign debt instrument has been located ~~and reserved~~ for lending for the natural or legal person so that settlement can be effected when it is due.

2011/01/13
Committee: JURI

Proposal for a regulation
Article 13

Buy-in procedures and fines for late settlement 1. A trading venue that has shares or sovereign debt admitted to trading shall ensure that it, or the central counterparty that provides clearing services for the trading venue, has procedures in place which comply with all of the following requirements: (a) where a natural or legal person who sells shares or sovereign debt instruments on the venue is not able to deliver the shares or sovereign debt instrument for settlement within four trading days after the day on which the trade takes place, or six trading days after the day on which the trade takes place in the case of market making activities, then procedures are automatically triggered for the trading venue or central counterparty to buy-in the shares or sovereign debt instrument to ensure delivery for settlement; (b) where the trading venue or central counterparty is not able to buy-in the shares or the sovereign debt instrument for delivery then cash compensation is paid by the trading venue or the central counterparty to the buyer based on the value of the shares or the debt to be delivered at the delivery date plus an amount for any losses incurred by the buyer; (c) the natural or legal person who fails to settle pays an amount to the trading venue or central counterparty to reimburse the trading venue or central counterparty for all amounts paid pursuant to points (a) and (b). 2. A trading venue that has shares or sovereign debt instruments admitted to trading shall ensure that it has procedures in place, or that the settlement system that provides settlement services for the shares or sovereign debt instrument has procedures in place, which ensure that where a natural or legal person who sells shares or sovereign debt instrument on the venue fails to deliver the shares or sovereign debt instrument for settlement by the date on which settlement is due, then such natural or legal person is subject to the obligation to make daily payments to the trading venue or settlement system for each day that the failure continues. The daily payments shall be sufficiently high not to allow the seller to make a profit from the settlement failure and to act as a deterrent to natural or legal persons failing to settle. 3. A trading venue that has shares or sovereign debt admitted to trading shall have in place rules that enable it to prohibit a natural or legal person that is a member of the trading venue from entering into further short sales of shares or sovereign debt instruments on the trading venue as long as that person fails to settle a transaction resulting from a short sale on that trading venue.Article 13 deleted

2011/01/13
Committee: JURI

Proposal for a regulation
Article 15 – paragraph 1 – introductory part

1. Articles 5, 6, 7, 8 and 12 any restrictions or requirements imposed under Articles 16, 17, 18 or 24 shall not apply to the activities of an investment firm, or a third country entity or a local firm that is a member of a trading venue or of a market in a third country, whose legal and supervisory framework has been declared equivalent pursuant to paragraph 2, when it deals as principal in a financial instrument, whether traded on or outside a trading venue, in either or both of the following capacities:

2011/01/13
Committee: JURI

Proposal for a regulation
Article 15 – paragraph 3

3. Articles 8 and 12 and any restrictions or requirements imposed in relation to sovereign debt under Articles 16, 17, 18 or 24 shall not apply to the activities of a natural or legal person wh~~en, acting a~~o is an authorised primary dealer pursuant to an agreement with an issuer of sovereign debt~~, it~~ and who is dealing as principal in a financial instrument in relation to primary or secondary market operations relating to the sovereign debt of a Member State.

2011/01/13
Committee: JURI

Proposal for a regulation
Article 16 – paragraph 1 – introductory part

1. The competent authority of a Member State may require natural or legal persons who have net short positions in relation to a s~~pecific financial instrument or class of financial instruments to notify it or~~hare admitted to trading on a trading venue to disclose to the public details of the position whenever the position reaches or falls below a notification threshold fixed by the competent authority, where all the following conditions are fulfilled:

2011/01/13
Committee: JURI

Proposal for a regulation
Article 16 – paragraph 2

~~2. Paragraph 1 shall not apply to financial instruments in respect of which transparency is already required under Articles 5 to 8 Chapter II.~~deleted

2011/01/13
Committee: JURI

Proposal for a regulation
Article 17 – paragraph 2 – introductory part

2. The competent authority of the Member State may prohibit or impose conditions relating to natural or legal persons e~~ntering into:~~stablishing or increasing net short positions in relation to shares admitted to trading on a trading venue in the Member State.

2011/01/13
Committee: JURI

Proposal for a regulation
Article 17 – paragraph 2 – point a

~~(a) a short sale;~~deleted

2011/01/13
Committee: JURI

Proposal for a regulation
Article 17 – paragraph 2 – point b

(b) a transaction other than a short sale which creates, or relates to, a financial instrument and the effect or one of the effects of that transaction is to confer a financial advantage on the natural or legal person in the event of a decrease in the price or value of another financial instrument.deleted

2011/01/13
Committee: JURI

Proposal for a regulation
Article 17 – paragraph 3

3. The competent authority of the Member State may prevent natural or legal persons from entering into transactions relating to financial instruments or limit the value of transactions in the financial instrument that may be entered into.deleted

2011/01/13
Committee: JURI

Proposal for a regulation
Article 17 – paragraph 4

4. A measure under paragraph 2 or 3 may apply to transactions concerning all financial instruments, financial instruments of a specific class or a specific financial instrument. The measure may apply in circumstances or be subject to exceptions specified by the relevant competent authority. Exceptions may in particular be specified to apply to market making activities and primary market activities.deleted

2011/01/13
Committee: JURI