20 Amendments of Sharon BOWLES related to 2011/0298(COD)
Amendment 238 #
Proposal for a directive
Recital 13 a (new)
Recital 13 a (new)
(13a) While there should be measures in place preventing the execution of client orders in an OTF against the proprietary capital of the investment firm or market operator operating an OTF, there are market making activities which are in the clients´ interests, such as enabling the investment firm to fulfil orders initiated by clients, to respond to clients' request to trade, to obtain best execution, or to execute a hedge to unwind the risk related to client trades. The deployment of proprietary capital in an OTF shall be subject to strict order handling rules to prevent conflicts of interest and the investment firm should disclose to its clients how its proprietary capital may be applied in the OTF.
Amendment 273 #
Proposal for a directive
Recital 48 a (new)
Recital 48 a (new)
(48a) It is also necessary to ensure that the fee structures of trading venues are transparent, non-discriminatory and fair and that they are not structured in such a way as to promote disorderly market conditions. Therefore regulated markets should have in place fee structures to incentivise a lower ratio of system messages to executed trades. This may include thresholds for higher fees for large cancellations or per message charges.
Amendment 284 #
Proposal for a directive
Recital 51 a (new)
Recital 51 a (new)
(51a) There are many ways in which the return on investments to investors is reduced, including fees, costs and other deductions. These can be embedded in multiple layers so that they are not obvious or even become restated as investment in a subsequent layer or envelope, making it difficult for investors to understand the cumulative level of deductions. Therefore is necessary for all deductions to be elaborated at a cumulative level and for investors to be given an illustration of the long term effect on returns by way of a direct comparison of return to the investor compared with total deduction. This should be given in advance of investment on the basis of a reasonable projection and at least once a year for each actual investment. ESMA should issue guidelines concerning appropriate formats of projections and presentations.
Amendment 296 #
Proposal for a directive
Recital 52 a (new)
Recital 52 a (new)
(52a) For those employees who advise on or sell financial products and instruments to retail clients, Member States should ensure that their remuneration by the firm will not affect employees' impartiality in making a suitable recommendation or appropriate sale or presenting information in a form that is fair, clear and not misleading. Remuneration in such situations should not be solely dependent on sales targets or the profit to the firm from a specific financial instrument. Remuneration based on sales or targets could be subject to retention clawback for misselling.
Amendment 366 #
Proposal for a directive
Recital 113 a (new)
Recital 113 a (new)
(113a) For long term stability, supervisory control and understanding of aggregate financial flows, it is desirable to maximise real time or near real time transaction mapping and automated analysis procedures. With this in mind, standardisation of identifiers and certain data messaging segments should be promoted, with fair, reasonable and non discriminatory licensing provisions applied to any intellectual property rights.
Amendment 367 #
Proposal for a directive
Recital 113 b (new)
Recital 113 b (new)
(113b) The Commission, in conjunction with ESMA, EBA and ESRB should promote work on identifiers which indicate the nature, asset content type and degree of complexity of structured and complex products.
Amendment 373 #
Proposal for a directive
Article 1 – paragraph 3 – introductory part
Article 1 – paragraph 3 – introductory part
3. The following provisions shall also apply to credit institutions authorised under Directive 2006/48/EC, when providing one or more investment services and/or performing investment activities and when selling or advising clients in relation to deposits other than those with a rate of return which is determined in relation to an interest ratestructured deposits:
Amendment 458 #
Proposal for a directive
Article 4 – paragraph 2 – point 4
Article 4 – paragraph 2 – point 4
4) ‘Execution of orders on behalf of clients’ means acting to conclude agreements to buy or sell one or more financial instruments on behalf of clients including under a back-to-back trading model. Execution of orders includes the conclusion of agreements to sell financial instruments issued by a credit institution or an investment firm at the moment of their issuance;
Amendment 469 #
Proposal for a directive
Article 4 – paragraph 2 – point 27
Article 4 – paragraph 2 – point 27
27) ‘Management body’ means the governing body of a firmn investment firm, market operator or data reporting services provider, comprising the supervisory and the managerial functions, which has the ultimate decision-making authority and is empowered to set the firminvestment firm's, the market operator's or the data services provider's strategy, objectives and overall direction. Management body shall, includeing persons who effectively direct the business of the firmentity;
Amendment 471 #
Proposal for a directive
Article 4 – paragraph 2 – point 30
Article 4 – paragraph 2 – point 30
30) ‘Algorithmic trading’ means trading in financial instruments where a computer algorithm automatically determines all or substantially all or a significant part of the individual parameters of orders such as whether to initiate the order, the timing, price or quantity of the order or how to manage the order after its submission, with limited or no human intervention. This definition does not include any system that is only used for the purpose of routing orders to one or more trading venues or for the confirmation of orders;
Amendment 534 #
Proposal for a directive
Article 9 – paragraph 4 – subparagraph 1 – introductory part
Article 9 – paragraph 4 – subparagraph 1 – introductory part
ESMA shall develop draft regulatory standards to specifyguidelines to specify how the institution should take into account the following:
Amendment 537 #
Proposal for a directive
Article 9 – paragraph 4 – subparagraph 2
Article 9 – paragraph 4 – subparagraph 2
Power is delegated to the Commission to adopt the regulatory technical standardguidelines referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 538 #
Proposal for a directive
Article 9 – paragraph 4 – subparagraph 3
Article 9 – paragraph 4 – subparagraph 3
ESMA shall submit those draft regulatory technical standardguidelines to the Commission by [31 December 2014].
Amendment 544 #
Proposal for a directive
Article 9 – paragraph 6 – subparagraph 1 – point d a (new)
Article 9 – paragraph 6 – subparagraph 1 – point d a (new)
(d a) maintain an anti-fraud strategy.
Amendment 637 #
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. Member States shall require a MTF to have in place effective systems, procedures and arrangements to comply with the conditions in Article 51. or other procedures and arrangements relevant to the trading model of the MTF.
Amendment 661 #
Proposal for a directive
Article 20 – paragraph 4
Article 20 – paragraph 4
4. Member States shall require that, where OTFs allow for or enable algorithmic trading to take place through their systems, theyan OTF to have in place effective systems, procedures and arrangements to comply with the conditions of Article 51 or other procedures and arrangements relevant to the trading model of the OTF.
Amendment 756 #
Proposal for a directive
Article 24 – paragraph 5 a (new)
Article 24 – paragraph 5 a (new)
5 a. The investor shall be provided with details of all deductions, including fees and costs, elaborated at a cumulative level. This shall include an illustration of the long term effect on returns by way of a direct comparison of return to the investor compared with total deductions. This shall be given in advance of investment on the basis of a reasonable projection and at least once a year for each actual investment. ESMA shall issue guidelines concerning appropriate formats of projections and presentations.
Amendment 858 #
Proposal for a directive
Article 28 – paragraph 3 – introductory part
Article 28 – paragraph 3 – introductory part
3. TIn order to ensure that measures for the protection of investors and fair and orderly functioning of markets take account of technical developments in financial markets, and to ensure the uniform application of paragraphs 1 and 2, the Commission shall be empowered to adopt delegated acts in accordance with Article 94 concerning measures which define:
Amendment 1007 #
Proposal for a directive
Article 51 – paragraph 3
Article 51 – paragraph 3
3. Member States shall require a regulated market to have in place effective systems, procedures and arrangements to ensure that algorithmic or high frequency trading systems cannot create or contribute to disorderly trading conditions on the market including systems to limit the ratio of unexecuted orders to transactionarrangements in the form of trading charges to incentivise a lower ratio of system messages to executed trades that may be entered into the system by a member or participant, to be able to slow down the flow of orders if there is a risk of its system capacity being reached and to limit the minimum tick size that may be executed on the market.
Amendment 1053 #
Proposal for a directive
Article 51 – paragraph 7 – point e a (new)
Article 51 – paragraph 7 – point e a (new)
(ea) to establish other procedures and arrangements for MTF trading models where the controls in paragraphs 1 to 3 are not applicable.