24 Amendments of Sirpa PIETIKÄINEN related to 2011/0298(COD)
Amendment 226 #
Proposal for a directive
Recital 12
Recital 12
(12) All trading venues, namely regulated markets, MTFs, and OTFSystematic Internalisers, should lay down transparent rules governing access to the facility. However, while regulated markets and MTFs should continue to be subject to highly similar requirements regarding whom they may admit as members or participants, OTFSystematic Internalisers should be able to determine and restrict access based inter alia on the role and obligations which their operators have in relation to their clients. (The deletion of the OTF-category included in this amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment 233 #
Proposal for a directive
Recital 13
Recital 13
(13) An investment firm executing client orders against own proprietary capital should be deemed a systematic internaliser, unless the transactions are carried out outside regulated markets, MTFsn and OTFs on an occasional, ad hoc and irregular C-basis. Systematic internalisers should be defined as investment firms which, on an organised, frequent and systematic basis, deal on own account by executing client orders outside a regulated market, an MTF or an OMTF. In order to ensure the objective and effective application of this definition to investment firms, any bilateral trading carried out with clients should be relevant and quantitative criteria should complement the qualitative criteria for the identification of investment firms required to register as systematic internalisers, laid down in Article 21 of Commission Regulation No 1287/2006 implementing Directive 2004/39/EC. While an OTF is any system or facility in which multiple third party buying and selling interests interact in the system, aA systematic internaliser should not be allowed to bring together third party buying and selling interests.
Amendment 270 #
Proposal for a directive
Recital 47 a (new)
Recital 47 a (new)
(47a) In order to clearly identify each method of accessing a trading venue, ESMA should draw up a list of the means and methods of accessing a trading venue through a registered investment firm and trading member.
Amendment 280 #
Proposal for a directive
Recital 50
Recital 50
(50) There is a multitude of trading venues currently operating in the EU , among which a number are trading identical instruments. In order to address potential risks to the interests of investors it is necessary to formalise and further harmonise the processes on the consequences for trading on other venues if one trading venue decides to suspend or remove a financial instrument from trading. In the interest of legal certainty and to adequately address conflicts of interests when deciding to suspend or to remove instruments from trading, it should be ensured that if one regulated market or MTF stops trading due to non disclosure of information about an issuer or financial instrument, the others follow that decision unless continuing trading may be justified due to exceptional circumstances. In addition, it is necessary to further formalise and improve the exchange of information and the cooperation of trading venues in cases of exceptional conditions in relation to a particular instrument that is traded on various venues. Therefore, the competent authority of the primary listing venue should be designated to take the overall responsibility for real-time surveillance and the primary and secondary venues should be required to cooperate.
Amendment 290 #
Proposal for a directive
Recital 52
Recital 52
(52) In order to give all relevant information to investors, it is appropriate to require investment firms providing investment advice to clarify the basis of the advice they provide, notably the range of products they consider in providing personal recommendations to clients, whether they provide investment advice on an independent basis and whether they provide the clients with the on-going assessment of the suitability of the financial instruments recommended to them. It is also appropriate to require investment firms to explain their clients the reasons of the advice provided to them. In order to further define the regulatory framework for the provision of investment advice, while at the same time leaving choice to investment firms and clients, it is appropriate to establish the conditions for the provisions of this service when firms inform clients that the service is provided on an independent basis. In order to strengthen the protection of investors and increase clarity to clients as to the service they receive, it is appropriate to further restrict the possibility for firms to accept or receive inducements from third parties, and particularly from issuers or product providers, when providing the service of investment advice on an independent basis and the service of portfolio management. In such cases, only limited non-monetary benefits as training on the features of the products should be allowed subject to the condition that they do not impair the ability of investment firms to pursue the best interest of their clients, as further clarified in. When not expressly prohibited in accordance with this directive, inducements should be subject to the conditions currently established under Article 26 of Directive 2006/73/EC.
Amendment 596 #
Proposal for a directive
Article 17 – paragraph 3
Article 17 – paragraph 3
3. An algorithmic trading strategy shall be inWhen an investment firm meets the conditions of Article 4(6) it shall remain in as near continuous operation as possible during the trading hours of the trading venue to which it sends orders or through the systems of which it executes transactions. The trading parameters or limits of an algorithmic trading strategystrategy of that firm shall ensure that the strategit continuously posts firm quotes at competitive prices with the result of providing liquidity on a regular and ongoing basis to these trading venues at all times, regardless of prevailing market conditions.
Amendment 605 #
Proposal for a directive
Article 17 – paragraph 4
Article 17 – paragraph 4
4. An investment firm that provides direct electronic access to a trading venue shall have in place effective systems and controls which ensure a proper assessment and review of the suitability of persons using the service, that persons using the service are prevented from exceeding appropriate pre set trading and credit thresholds, that trading by persons using the service is properly monitored and that appropriate risk controls prevent trading that may create risks to the investment firm itself or that could create or contribute to a disorderly market or be contrary to Regulation (EU) No [MAR] or the rules of the trading venue. The investment firm shall ensure that there is a binding written agreement between the firm and the person regarding the essential rights and obligations arising from the provision of the service and that under the agreement the firm retains responsibility for ensuring trading using that service complies with the requirements of this Directive, the Regulation (EU) No [MAR] and the rules of the trading venue.
Amendment 616 #
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall require that investment firms or market operators operating an MTF or an OTF, in addition to meeting the requirements laid down in Article 16, establish transparent rules and procedures for fair and orderly trading and establish objective and non-discretionary criteria for the efficient execution of orders. They shall have arrangements for the sound management of the technical operations of the facility, including the establishment of effective contingency arrangements to cope with risks of systems disruption.
Amendment 630 #
Proposal for a directive
Article 18 a (new)
Article 18 a (new)
Article 18 a Trading process Member States shall require that all transactions in financial instruments be executed on regulated markets, MTFs, systematic internalisers or OTC.
Amendment 631 #
Proposal for a directive
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Member States shall require that investment firms or market operators operating an MTF, in addition to meeting the requirements laid down in Articles 16 and 18, shall establish and implement non- discretionary rules for the execution of orders in the system.
Amendment 640 #
Proposal for a directive
Article 19 a (new)
Article 19 a (new)
Article 19 a Specific requirements for OTC Member States shall require that investment firms do not execute OTC orders of clients in financial instruments in sizes below the standard market size. Member States shall require that execution of orders of clients on a systematic basis is not carried out OTC.
Amendment 642 #
Proposal for a directive
Article 20
Article 20
Amendment 696 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 1 – indent 1
Article 24 – paragraph 3 – subparagraph 1 – indent 1
– the investment firm and its services; when investment advice is provided, information shall specify in advance whether the advice is provided on an independent basiin conjunction with the acceptance or receipt of third-party inducements and whether it is based on a broad or on a more restricted analysis of the market and shall indicate whether the investment firm will provide the client with the on- goinga periodical assessment of the suitability of the financial instruments recommended to clients,
Amendment 718 #
Proposal for a directive
Article 24 – paragraph 3 a (new)
Article 24 – paragraph 3 a (new)
Amendment 724 #
Proposal for a directive
Article 24 – paragraph 5 – introductory part
Article 24 – paragraph 5 – introductory part
5. When the investment firm informs the client that investment advice is provided on an independent fee-paying basis, the firm:
Amendment 743 #
Proposal for a directive
Article 24 – paragraph 5 – point ii
Article 24 – paragraph 5 – point ii
(ii) shall not accept or receive fees, commissions or any monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clientsinform the client whether the financial instruments recommended will be limited to financial instruments issued or provided by entities having close links with the investment firm.
Amendment 768 #
Proposal for a directive
Article 24 – paragraph 6
Article 24 – paragraph 6
6. When providing portfolio management the investment firm shall not accept or receive fees, commissions or any monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clients, prior to the agreement, inform its client about the expected scale of inducements. The periodic report shall disclose all inducements paid or received in the preceding period.
Amendment 898 #
Proposal for a directive
Article 34 – paragraph 1 a (new)
Article 34 – paragraph 1 a (new)
1 a. Member States shall require that an investment firm or a market operator operating a regulated market, or an MTF cooperate with the designated competent authority or a third party to whom the task of overall real-time surveillance has been delegated, in order for it to carry out its obligations in accordance with [Article 17a (new) MAR].
Amendment 901 #
Proposal for a directive
Article 34 – paragraph 2 – subparagraph 1
Article 34 – paragraph 2 – subparagraph 1
ESMA shall develop draft regulatory technical standards to determine the specific circumstances that trigger an information requirement as referred to in paragraph 1 and the specific requirements and conditions for the cooperation referred to in paragraph 1a.
Amendment 1006 #
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 trading systems cannot create or contribute to disorderly trading conditions on the market including systems to limit the ratio of unexecuted orders to transactions 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 limitenforce the minimum tick size that may be executed on the market as in place in the listing venue for that financial instrument. In particular Member States shall prohibit a regulated market from providing its members 'naked' or 'unfiltered' access.
Amendment 1016 #
Proposal for a directive
Article 51 – paragraph 4 – subparagraph 1
Article 51 – paragraph 4 – subparagraph 1
Member States shall require a regulated market that permits direct electronic access to have in place effective systems procedures and arrangements to ensure that members or participants are only permitted to provide such services if they are an authorised investment firm under this Directive, that appropriate criteria are set and applied regarding the suitability of persons to whom such access may be provided and, that the member or participant retains responsibility for orders and trades executed using that service and that there is an end to the practice of investment firms offering 'naked' or 'unfiltered' access.
Amendment 1029 #
Proposal for a directive
Article 51 – paragraph 5 a (new)
Article 51 – paragraph 5 a (new)
5a. Member States shall require that regulated markets have in place transparent, fair, non-discriminatory fee structures which discourage the cancellation of orders. These fee structures shall be set by each regulated market and calibrated to each security to which they apply.
Amendment 1069 #
Proposal for a directive
Article 54 – paragraph 1 a (new)
Article 54 – paragraph 1 a (new)
Amendment 1072 #
Proposal for a directive
Article 54 – paragraph 2 – subparagraph 1
Article 54 – paragraph 2 – subparagraph 1
ESMA shall develop draft regulatory technical standards to determine the specific circumstances that trigger an information requirement as referred to in paragraph 1 and the specific requirements and conditions for the cooperation referred to in paragraph 1a.