Activities of Robert GOEBBELS related to 2011/0298(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on markets in financial instruments repealing Directive 2004/39/EC of the European Parliament and of the Council (recast) PDF (1 MB) DOC (1 MB)
Amendments (83)
Amendment 13 #
Proposal for a directive
Recital 86 a (new)
Recital 86 a (new)
(86a) Member States should require regulated markets, and operators of Multilateral Trading Facilities (MTFs) which admit to trading or trade commodity derivatives to apply in addition to ex ante position limits such other controls on positions as are necessary to ensure the orderly operation of markets and in particular to reduce the potential for manipulation of the market for the derivative or the underlying by holders of large positions and to ensure that market participants have the necessary arrangements in place to physically settle the contract where necessary. Those controls should include the possibility for the trading venue to require members or participants to terminate or reduce a position.
Amendment 32 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Article 59 – paragraph 1 – subparagraph 1 – introductory part
1. Member States shall ensure that regulated markets, and operators of MTFs and OTFs which admit to trading or trade commodity derivatives apply limits on the number of contracts which any given market members or participants can enter into over a specified period of time, or alternative arrangements with equivalent effect such as position management with automatic review thresholds , to be imposed in order to:
Amendment 41 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 2
Article 59 – paragraph 1 – subparagraph 2
The limits or arrangements shall be transparent and non- discriminatory, specifying the persons to whom they apply and any exemptions, and taking account of the nature and composition of market participants and of the use they make of the contracts admitted to trading. In particular, they shall differentiate between positions which objectively reduce risks directly related to commercial activities related to the commodity and other positions. They shall specify clear quantitative thresholds such as the maximum number of contracts persons can enter or hold, taking account of the characteristics of the underlying commodity market, including patterns of production, consumption and transportation to market.
Amendment 42 #
Proposal for a directive
Article 59 – paragraph 1 a (new)
Article 59 – paragraph 1 a (new)
1a. Member States shall require that regulated markets and operators of MTFs which admit to trading or trade commodity derivatives also apply such other controls on positions as are necessary to ensure the orderly operation of markets and in particular to reduce the potential for manipulation of the market for the derivative or the underlying by holders of large positions and to ensure that market participants have the necessary arrangements in place to settle the contract physically where necessary. Such controls shall include the possibility for the trading venue to require members or participants to terminate or reduce a position.
Amendment 44 #
Proposal for a directive
Article 59 – paragraph 2
Article 59 – paragraph 2
2. Regulated markets, MTF and OMTFs shall inform their competent authority of the details of the limits or arrangements. The competent authority shall communicate the same information to ESMA which shall publish and maintain on its website a database with summaries of the limits or arrangements in force.
Amendment 47 #
Proposal for a directive
Article 59 – paragraph 4
Article 59 – paragraph 4
Amendment 51 #
Proposal for a directive
Annex 1 – section C – point 4
Annex 1 – section C – point 4
(4) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest rates or yields, emission allowances or other derivatives instruments, financial indices or financial measures which may be settled physically or in cash;
Amendment 54 #
Proposal for a directive
Annex I – Section C - point 10
Annex I – Section C - point 10
(10) Options, futures, swaps, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates, emission allowances or inflation rates or other official economic statistics that must be settled in cash or may be settled in cash at the option of one of the parties other than by reason of default or other termination event, as well as any other derivative contracts relating to assets, rights, obligations, indices and measures not otherwise mentioned in this Section, which have the characteristics of other derivative financial instruments, having regard to whether, inter alia, they are traded on a regulated market , OTF, or an MTF, are cleared and settled through recognised clearing houses or are subject to regular margin calls.
Amendment 221 #
Proposal for a directive
Recital 8
Recital 8
(8) It is appropriate to include in the list of financial instruments certainall commodity derivatives and others which are constituted and traded in such a manner as to give rise to regulatory issues comparable to traditional financial instruments.
Amendment 224 #
Proposal for a directive
Recital 11
Recital 11
(11) It is necessary to establish a comprehensive regulatory regime governing the execution of transactions in financial instruments irrespective of the trading methods used to conclude those transactions so as to ensure a high quality of execution of investor transactions and to uphold the integrity and overall efficiency of the financial system. A coherent and risk-sensitive framework for regulating the main types of order-execution arrangement currently active in the European financial marketplace should be provided for. It is necessary to recognise the emergence of a new generation of organised trading systems alongside regulated markets whichand MTF which have benefited from a regulatory loophole under the current MiFID regime and that they should be subjected to obligations designed to preserve the efficient and orderly functioning of financial markets.
Amendment 225 #
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 ry have in relation to their clients. (This amendment (i.e. the delaetion to their clients.of "OTF") applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment 232 #
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 on an over-the-counter (OTC) basis. OTC trading refers to bilateral trading outside regulated markets, MTFs and OMTFs on an occasional, ad hoc and irregular basis with eligible counterparties and at sizes above standard market size. Systematic internalisers should be defined as investment firms which, on an organised, frequent and systematic basis, deal on own account bywhen 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 250 #
Proposal for a directive
Recital 38
Recital 38
(38) It is necessary to strengthen the role of management bodies of investment firms in ensuring sound and prudent management of the firms, the promotion of the integrity of the market and the interest of investors. The management body of an investment firm should at all time commit sufficient time and possess adequate knowledge, skills and experience to be able to understand the business of the investment firm and its main risk. To avoid group thinking and facilitate critical challenge, management boards of investment firms should be sufficiently diverse as regards age, gender, provenance, education and professional background to present a variety of views and experiences. Gender balance is of a particular importance to ensure adequate representation of demographical realityMember States should adopt adequate legislation allowing to hold accountable members of management bodies in case of severe mismanagement.
Amendment 264 #
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 allgorithmic and high frequency trading firms be authorised when they are a direct member of a trading venue. This should ensure they are is considered as investment services or activities including when they are conducted on own account. This should ensure that firms providing these activities are authorised as investment firms and subject to organisational requirements under the Directive and are properly supervised.
Amendment 303 #
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 financial instruments, including 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.
Amendment 313 #
Proposal for a directive
Recital 67
Recital 67
(67) The financial crisis has shown limits in the ability of non-retail clients to appreciate the risk of their investments. While it should be confirmed that conduct of business rules should be enforced in respect of those investors most in need of protection, it is appropriate to better calibrate the requirements applicable to different categories of clients. To this extent, it is appropriate to extend some information and reporting requirements to the relationship with eligible counterparties. In particular, the relevant requirements should relate to the safeguarding of client financial instruments and monies as well as information and reporting requirements concerning more complex financial instruments and transaction. In order to better define the classification of municipalities and local public authorities, it is appropriate to clearly exclude them from the list of eligible counterparties and of clients who are considered to be professionals while still allowing these clients to ask a treatment as professional clients on request.
Amendment 315 #
Proposal for a directive
Recital 72
Recital 72
(72) The provision of services by third country firminvestment firms and market operators in the Union is subject to national regimes and requirements. These regimes are highly differentiated and the firms authorised in accordance with them do not enjoy the freedom to provide services and the right of establishment in Member States other than the one where they are established. It is appropriate to introduce a common regulatory framework at Union level. The regime should harmonize the existing fragmented framework, ensure certainty and uniform treatment of third country firminvestment firms and market operators accessing the Union, ensure that and equivalence assessment has been carried out by the Commission in relation to the regulatory and supervisory framework of third countries and should provide for a comparable level of protections to investors in the EU receiving services by third country firms.investment firms and market operators. (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)
Amendment 322 #
Proposal for a directive
Recital 73
Recital 73
(73) The provision of services to retail and professional clients should always require the establishment of a branch in the Union. The establishment of the branch shall be subject to authorisation and supervision in the Union. Proper cooperation arrangements should be in place between the competent authority concerned and the competent authority in the third country. Sufficient initial capital should be at free disposal of the branch. Once authorised the branch should be subject to supervision in the Member State where the branch is established; the third country firm should be able to provide services in other Member States through the authorised and supervised branch, subject to a notification procedure. The provision of services without branches should be limited to eligible counterparties. It should be subject to registration by ESMA and to supervision in the third country. Proper cooperation arrangements should be in place between ESMA and the competent authorities in the third country.
Amendment 351 #
Proposal for a directive
Recital 88
Recital 88
Amendment 358 #
Proposal for a directive
Recital 101
Recital 101
(101) This Directive ishould be without prejudice to any provisions in the law of Member States relating to criminal sanctions.
Amendment 359 #
Proposal for a directive
Recital 108
Recital 108
(108) Technical standards in financial services should ensure consistent harmonisation and adequate protection of depositors, investors and consumers across the Union. As a body with highly specialised expertise, it would be efficient and appropriate to entrust ESMA, with the elaboration of draft regulatory and implementing technical standards which do not involve policy choices, for submission to the Commission. To ensure consistent investor and consumer protection across financial services sectors, ESMA should carry out its tasks, to the extent possible, in close cooperation with the other two ESAs within the framework of the Joint Committee.
Amendment 380 #
Proposal for a directive
Article 2 – paragraph 1 – point c
Article 2 – paragraph 1 – point c
(c) persons providing an investment service where that service is provided in an incidental manner in the course of a professional activity and that activity is regulated by legal or regulatory provisions or a code of ethics governing the profession which do not exclude the provision of that service;
Amendment 384 #
Proposal for a directive
Article 2 – paragraph 1 – point d – point ii a (new)
Article 2 – paragraph 1 – point d – point ii a (new)
(iia) engage in algorithmic trading;
Amendment 391 #
Proposal for a directive
Article 2 – paragraph 1 – point d – subparagraph 2
Article 2 – paragraph 1 – point d – subparagraph 2
Amendment 412 #
Proposal for a directive
Article 2 – paragraph 1 – point i – paragraph 1 – subparagraph 2 a (new)
Article 2 – paragraph 1 – point i – paragraph 1 – subparagraph 2 a (new)
unless they are a member or a participant on a trading venue;
Amendment 418 #
Proposal for a directive
Article 2 – paragraph 1 – subparagraph 1 a (new)
Article 2 – paragraph 1 – subparagraph 1 a (new)
Persons and firms as referred in points i, j and k shall not be considered exempted unless the relevant competent authority will grant the exemption.
Amendment 461 #
Proposal for a directive
Article 4 – paragraph 2 – point 6
Article 4 – paragraph 2 – point 6
6) ‘Market maker’ means a person who holds himself out on the financial markets on a continuous basis as being willing to deal on own account by buying and selling financial instruments against his proprietary capital at prices defined by him;
Amendment 477 #
Proposal for a directive
Article 4 – paragraph 2 – point 30 a (new)
Article 4 – paragraph 2 – point 30 a (new)
30a) "High frequency algorithmic trading strategy" means an algorithmic trading strategy characterised by taking positions for short periods, using order handling systems with speeds close to minimal latency of a trade, as well as by infrastructure intended to minimise network and other types of latencies on a continuous basis and independent of order flow submitted to the investment firm by its clients. In particular, a high frequency algorithmic trading strategy as defined above, can contain one or more of the following elements: (a) order initiation, generating, routing and execution are determined by the system without human intervention for each individual trade or order (b) a short time-frame for establishing and liquidating positions; (c) a high daily portfolio turnover; (d) a high order-to-trade ratio intraday; and (e) ending the trading day at or close to a flat position.
Amendment 489 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 a (new)
Article 4 – paragraph 2 – point 33 a (new)
33a) 'Market distorting positions' means positions which do not objectively reduce risks directly related to commercial activities related to the commodity and are above the level required to provide sufficient liquidity for positions which do objectively reduce risks directly related to commercial activities related to the commodity, or which otherwise disrupt the price discovery function of the market;
Amendment 498 #
Proposal for a directive
Article 4 – paragraph 3
Article 4 – paragraph 3
3. The Commission shall be empowered to adopt delegated acts in accordance with Article 94 concerning measures to specify some technical elements of or amend the definitions laid down in paragraph 1 of this Article, to adjust them to market developmentsif appropriate, to take into account: (a) technical developments in financial markets; (b) the list of abusive practices referred to in Article 34b(b) of Regulation (EU) No …/… of the European Parliament and of the Council of ... [MAR] in particular with regard to high-frequency trading and including, but not limited to, spoofing, quote stuffing and layering.
Amendment 503 #
Proposal for a directive
Article 5 – paragraph 4 a (new)
Article 5 – paragraph 4 a (new)
4a. Member States shall require that individuals providing investment advice, independent investment advice or, where appropriate, ancillary investment advice to clients, possess an appropriate level of knowledge and competences based on recognised qualifications.
Amendment 526 #
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Member States shall require investment firms to take into account diversity as one of the criteria for selection of members of the management body. In particular, taking into account the size of their management body, investment firms shall put in place a policy promoting gender, age, educational, professional and geographical diversity on the adopt adequate legislation allowing to hold accountable members of management bodies in case of severe mismanagement body.
Amendment 535 #
Proposal for a directive
Article 9 – paragraph 4 – subparagraph 1 – point e a (new)
Article 9 – paragraph 4 – subparagraph 1 – point e a (new)
(ea) the cases of severe mismanagement in order for Member States to adopt appropriate legislation.
Amendment 542 #
Proposal for a directive
Article 9 – paragraph 6 – subparagraph 1 – point c a (new)
Article 9 – paragraph 6 – subparagraph 1 – point c a (new)
(ca) define, approve and oversee the firm's remuneration of sales staff which should be designed to encourage responsible business conduct, fair treatment of consumers and to avoid conflicts of interest. The remuneration structure should be disclosed to customers where appropriate, such as where potential conflicts of interest cannot be managed or avoided;
Amendment 546 #
Proposal for a directive
Article 9 – paragraph 8 – subparagraph 2 – point ii
Article 9 – paragraph 8 – subparagraph 2 – point ii
(ii) the natural persons concerned are of sufficiently good repute, possess sufficient knowledge, skills and experiencean appropriate level of knowledge and competences based on recognised qualifications, and commit sufficient time to perform their duties.
Amendment 561 #
Proposal for a directive
Article 16 – paragraph 7 – subparagraph 2
Article 16 – paragraph 7 – subparagraph 2
Records of telephone conversation or electronic communications recorded in accordance with sub-paragraph 1 shall be provided to the clients involved upon request and shall be kept for a period of threequal to the investment period of the client plus one year with a maximum of five years.
Amendment 573 #
Proposal for a directive
Article 16 a (new)
Article 16 a (new)
Article 16 a Market makers A market maker as defined in Article 4(6) shall regularly provide buy and sell quotations that are reasonable and related to the market. It shall remain in as continuous operation as possible during the trading hours of the regulated market or MTF to which it sends orders or through the system of which it executes transactions.
Amendment 582 #
Proposal for a directive
Article 17 – paragraph 2
Article 17 – paragraph 2
2. An investment firm that engages in algorithmic trading shall at least annually provide to its home Competent Authority a description of the nature of its algorithmic trading strategies, details of the trading parameters or limits to which the system is subject, the key compliance and risk controls that it has in place to ensure the conditions in paragraph 1 are satisfied and details of the testing of its systems. A competent authority may at any time request further information from an investment firmn investment firm shall, at the request of a competent authority, submit further information about its algorithmic trading and the systems used for that trading.
Amendment 587 #
Proposal for a directive
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
2a. An investment firm that engages in a high frequency trading strategy shall on a daily basis provide to its home competent authority the raw audit-trail of its quotation and trading activity performed on any regulated market or MTF.
Amendment 590 #
Proposal for a directive
Article 17 – paragraph 2 b (new)
Article 17 – paragraph 2 b (new)
Amendment 592 #
Proposal for a directive
Article 17 – paragraph 3
Article 17 – paragraph 3
3. An algorithmic trading strategy shall beinvestment firm engaging in algorithmic trading shall ensure that each high frequency algorithmic trading strategy it operates is in continuous operation during the trading hours of the trading venue to which ithe investment firm sends orders or through the systems of which it executes transactions. The trading parameters or limits of an high frequency algorithmic trading strategy shall ensure that the high frequency algorithmic trading strategy posts firm quotes at competitive prices in line with its ordinary trading behaviour, with the result of providing liquidity on a regular and ongoing basis to these trading venues at all times, regardless of prevailing market conditions. except under exceptional circumstances, specified by the Commission in delegated acts in accordance with Article 94, where this would contravene the risk controls established in accordance with paragraph 1. The investment firm shall request its competent authority for the authorisation not to comply with the obligation established in the first subparagraph. The competent authority shall assess within 24 hours whether the exceptional circumstances specified in the delegated act established under the first subparagraph are fulfilled and take a decision. In case the decision allows the investment firm not to comply with the obligation established in the first subparagraph, the competent authority shall notify ESMA about that decision. ESMA shall immediately inform the competent authorities of the other Member States. If a competent authority disagrees with the action taken by another competent authority on an investment firm providing services in its territory, ESMA may assist those authorities in reaching an agreement in accordance with Article 19 of Regulation (EU) No 1095/2010. The conciliation shall be completed in 2 days. If the competent authorities concerned fail to reach an agreement within the conciliation phase, ESMA may take a decision in accordance with Article 19(3) of Regulation (EU) No 1095/2010. The decision shall be taken in 2 days.
Amendment 612 #
Proposal for a directive
Article 17 – paragraph 6 a (new)
Article 17 – paragraph 6 a (new)
6a. Any financial institution authorised under Directive 2009/65/EC [on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)], Directive 2009/138/EC [on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II)], Directive 2003/41/EC [on the activities and supervision of institutions for occupational retirement provision] or Directive 2011/61/EU [on Alternative Investment Fund Managers], shall fulfil the obligations under paragraphs 1, 2, 2a and 3 of this Article when engaging in algorithmic trading, including high frequency algorithmic trading.
Amendment 614 #
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 638 #
Proposal for a directive
Article 19 – paragraph 4 a (new)
Article 19 – paragraph 4 a (new)
4a. Member States shall require that the trading platform has at least four materially active members or users, each having the opportunity to interact with all the others in respect to price formation in the system.
Amendment 687 #
Proposal for a directive
Article 24 – paragraph 2 a (new)
Article 24 – paragraph 2 a (new)
2 a. An investment firm shall only be allowed to either provide non-independent investment advice or independent advice.
Amendment 714 #
Proposal for a directive
Article 24 – paragraph 3 – subparagraph 2
Article 24 – paragraph 3 – subparagraph 2
The information referred to in the first subparagraph should be provided in a comprehensible form in such a manner that clients or potential clients are reasonably able to understand the nature and risks of the investment service and of the specific type of financial instrument that is being offered and, consequently, to take investment decisions on an informed basis. TMember States may require that this information may beis provided in a standardised format.
Amendment 738 #
Proposal for a directive
Article 24 – paragraph 5 – point i
Article 24 – paragraph 5 – point i
(i) shall assess a sufficiently large number of financial instruments available on the market and provide advice which is unbiased and unrestricted. The financial instruments should be diversified with regard to their type and issuers or product providers and should not be limited to financial instruments issued or provided by entities having close links with the investment firm,
Amendment 745 #
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 benefi, benefits or other inducements 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.
Amendment 765 #
Proposal for a directive
Article 24 – paragraph 6
Article 24 – paragraph 6
6. When providing portfolio management or investment advice the investment firm shall not accept or receive fees, commissions or any monetary benefi, benefits or other inducements 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.
Amendment 780 #
Proposal for a directive
Article 24 – paragraph 7 – subparagraph 2
Article 24 – paragraph 7 – subparagraph 2
ESMA, in cooperation with EBA and EIOPA, through the Joint Committee, shall develop by [] at the latest, and update periodically, guidelines for the assessment and the supervision of cross- selling practices indicating, in particular, situations in which cross-selling practices are not compliant with obligations in paragraph 1.
Amendment 820 #
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 863 #
Proposal for a directive
Article 29 – paragraph 3 – subparagraph 2
Article 29 – paragraph 3 – subparagraph 2
Member States shall ensure that tied agents are only admitted to the public register if it has been established that they are of sufficiently good repute and that they possess an appropriate general, commercial and professional knowledgelevel of knowledge and competences based on recognised qualifications so as to be able to communicate accurately all relevant information regarding the proposed service to the client or potential client.
Amendment 903 #
Proposal for a directive
Article 35 – paragraph 7
Article 35 – paragraph 7
7. Member States shall require that where a financial instrument of an issuer is admitted to trading on one SME growth market, the financial instrument may alsoonly be traded on another SME growth market without the consent of the issuer. In such a case however, the issuer shall not be subject to any obligation relating to corporate governance or initial, ongoing or ad hoc disclosure with regard to the latter SME market.
Amendment 919 #
Proposal for a directive
Article 41 – paragraph 1 – introductory part
Article 41 – paragraph 1 – introductory part
1. Member States shall require that a third country firminvestment firm or market operator intending to provide investment services or, activities together with any ancillary services or trading venue services in their territory through a branch acquire a prior authorisation by the competent authorities of those Member States in accordance with the following provisions:
Amendment 928 #
Proposal for a directive
Article 41 – paragraph 1 – point g
Article 41 – paragraph 1 – point g
(g) the firm has requested membership ofbelongs to an investor- compensation scheme authorised or recognised in accordance with Directive 97/9/EC of the European Parliament and of the Council of 3 March 1997 on Investor- Compensation Schemes, at the time of authorisation.
Amendment 931 #
Proposal for a directive
Article 41 – paragraph 2
Article 41 – paragraph 2
2. Member States shall require that a third country firm intending to provide investment services or activities together with any ancillary services to retail and/or professional clients in those Member States' territory shall establish a branch in the Union.
Amendment 934 #
Proposal for a directive
Article 41 – paragraph 3 – subparagraph 1
Article 41 – paragraph 3 – subparagraph 1
The Commission mayshall adopt a decision in accordance with the procedure referred to in Article 95 in relation to a third country if the legal and supervisory arrangements of that third country ensure that firms authorised in that third country comply with legally binding requirements which have equivalent effect to the requirements set out in this Directive, in Regulation (EU) No …/… [MiFIR] and in Directive 2006/49/EC [Capital Adequacy Directive] and their implementing measures and that third country provides for equivalent reciprocal recognition of the prudential framework applicable to investment firms authorised in accordance with this directive.
Amendment 943 #
Proposal for a directive
Article 41 – paragraph 3 a (new)
Article 41 – paragraph 3 a (new)
3 a. The third country can be considered to give equivalent and reciprocal recognition if all of the following conditions are met: (a) the recognition refers to the whole EU framework and access is provided on an equal basis to all EU countries; (b) the rights and duties imposed on the firms are similar in the EU and in the third country.
Amendment 945 #
Proposal for a directive
Article 42 – introductory part
Article 42 – introductory part
A third country firminvestment firm or market operator intending to obtain authorisation for the provision of any investment services or, activities together with any ancillary services or providing trading venue services in the territory of a Member State shall provide the competent authority of that Member State with the following:
Amendment 987 #
Proposal for a directive
Article 51 – paragraph 1
Article 51 – paragraph 1
1. Member States shall require a regulated market or MTF to have in place effective systems, procedures and arrangements to ensure its trading systems are resilient, have sufficient capacity to deal with peak order and message volumes, are able to ensure orderly trading under conditions of market stress, are fully tested to ensure such conditions are met and are subject to effective business continuity arrangements to ensure continuity of its services if there is any unforeseen failure of its trading systems. (This Amendment applies throughout Article 51. Adopting it will necessitate corresponding changes to it.)
Amendment 999 #
Proposal for a directive
Article 51 – paragraph 2 a (new)
Article 51 – paragraph 2 a (new)
2a. Member States shall require a regulated market or MTF to have effective systems, procedures and arrangements in place to ensure that all orders entered into the system by a member or participant are valid for a period of minimum 500 milliseconds in which the order cannot be cancelled or modified.
Amendment 1005 #
Proposal for a directive
Article 51 – paragraph 3
Article 51 – paragraph 3
3. Member States shall require a regulated market or MTF to have in place effective systems, procedures and arrangements to allow identification of orders following an algorithmic trading strategy and of orders following a high-frequency trading strategy when placing such an order and 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 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 limit the minimum tick size that may be executed on the market. In particular Member States shall prohibit a regulated market or MTF from allowing its members to provide direct electronic access.
Amendment 1009 #
Proposal for a directive
Article 51 – paragraph 3 – subparagraphs 1 a, 1 b and 1 c (new)
Article 51 – paragraph 3 – subparagraphs 1 a, 1 b and 1 c (new)
Amendment 1022 #
Proposal for a directive
Article 51 – paragraph 4 a (new)
Article 51 – paragraph 4 a (new)
4a. Member States shall require regulated markets and MTFs to set in place a threshold that limits the share of orders entered by a market member compared to the overall order book.
Amendment 1026 #
Proposal for a directive
Article 51 – paragraph 5
Article 51 – paragraph 5
5. Member States shall require a regulated market or MTF to ensure that its rules on co- location services and fee structures are transparent, fair and non-discriminatory. The fee structure shall not create incentives to place orders or to execute transactions in a way which contributes to disorderly trading conditions or market abuse. In particular, in order to reflect the additional burden on system capacity, Member States shall require a regulated market or MTF to impose a higher fee on participants that place a ratio of cancelled orders to executed orders that exceeds 4:1.
Amendment 1046 #
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 that should be adopted;
Amendment 1097 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Member States shall ensure that regulated markets, operators of MTFcompetent authorities apply to regulated markets and OMTFs which admit to trading or trade commodity derivatives apply limits on the number of contracts which any given market members or participants, or class of market members or participants, can enter into over a specified period of time, or alternative arrangements with equivalent effect such as position management with automatic review thresholds , to be imposed in order to:
Amendment 1108 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – point c a (new)
Article 59 – paragraph 1 – subparagraph 1 – point c a (new)
(c a) ensure price discovery for the physical market;
Amendment 1111 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – point c b (new)
Article 59 – paragraph 1 – subparagraph 1 – point c b (new)
(cb) prevent the build-up of market distorting positions.
Amendment 1116 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 2
Article 59 – paragraph 1 – subparagraph 2
The limits or arrangements shall be transparent and non- discriminatory, specifying the persons to whom they apply and any exemptions, and taking account of the nature and composition of market participants and of the use they make of the contracts admitted to trading. In particular, they shall differentiate between positions which objectively reduce risks directly related to commercial activities related to the commodity, and other positions. They shall specify clear quantitative thresholds such as the maximum number of contracts persons can enter, taking account of the characteristics of the underlying commodity market, including patterns of production, consumption and transportation to market. They shall apply to both cash-settled and physically-settled contracts and for spot, single and all delivery month(s).
Amendment 1129 #
Proposal for a directive
Article 59 – paragraph 2
Article 59 – paragraph 2
2. Regulated markets, MTF and OMTFs shall inform their competent authority of the details of the limits or arrangements. The competent authority shall communicate the same information to ESMA which shall publish and maintain on its website a database with summaries of the limits or arrangements in force.
Amendment 1134 #
Proposal for a directive
Article 59 – paragraph 3
Article 59 – paragraph 3
3. The Commission shall be empowered to adopt delegated acts in accordance with Article 94 to determine (a) the limits or alternative arrangements on the number of contracts which any person can enter into over a specified period of time and the necessary equivalent effects of the alternative arrangements established in accordance with paragraph 1, as well as the conditions for exemptions. The limits or alternative arrangements shall take account of the conditions referred to in paragraph 1 and the limits that have been set by regulated markets, MTFs and OTFs. The limits or alternative arrangemen, (b) the proportion of contracts held across regulated market and MTF on commodity derivatives which do not objectively reduce risks directly related to commercial activities related to the commodity, versus contracts which do, (c) additional controls needed to ensure orderly operation of markets, and (d) the conditions for exemptions and for determining when positions objectively reduce risks directly related to commercial activities relating to the commodity. The limits shall take account of the conditions referred to in paragraph 1, the need for appropriate differentiation between commodities and categories of market participants, and the limits that have been set by trading venues. The limits determined in the delegated acts shall also take precedence over any measures imposed by competent authorities pursuant to Article 72(1) paragraph (g) of this Directive.
Amendment 1141 #
Proposal for a directive
Article 59 – paragraph 4
Article 59 – paragraph 4
Amendment 1160 #
Proposal for a directive
Article 60 – paragraph 1 a (new)
Article 60 – paragraph 1 a (new)
1 a. Member States shall ensure that investment firms trading in commodity derivatives or emission allowances or derivatives thereof outside of a trading venue provide the competent authority, upon request, with a complete breakdown of their positions, in accordance with Article 23 of Regulation (EU) No .../... [MiFIR].
Amendment 1171 #
Proposal for a directive
Article 60 – paragraph 3 – subparagraph 2
Article 60 – paragraph 3 – subparagraph 2
The reports mentioned in point (a) of paragraph 1 shouldall specify the number of long and short positions by category of trader, changes thereto since the previous report, percent of total open interest represented by each category, and the number of traders in each category. The reports mentioned in point (a) of paragraph 1 and in paragraph 1a shall also differentiate between: (i) positions that have been identified as positions which objectively reduce risks directly related to commercial activities related to the commodity; (ii) other positions.
Amendment 1176 #
Proposal for a directive
Article 60 – paragraph 4 – subparagraph 1
Article 60 – paragraph 4 – subparagraph 1
ESMA shall develop draft implementing technical standards to determine the format of the reports mentioned in point (a) ofaragraph 1 and in paragraph 1,a and the content of the information to be provided in accordance with paragraph 2.
Amendment 1270 #
Proposal for a directive
Article 91 – title
Article 91 – title
Cooperation and exchange of information with ESMA, within the European System of Financial Supervision (ESFS), and with the European System of Central Banks (ESCB)
Amendment 1273 #
Proposal for a directive
Article 91 – paragraph 1 a (new)
Article 91 – paragraph 1 a (new)
1a. Competent authorities, as parties to the ESFS, shall cooperate with trust and full mutual respect, in particular when ensuring the flow of appropriate and reliable information between them and other parties to the ESFS in accordance with the principle of sincere cooperation pursuant to Article 4(3) of the Treaty on European Union.
Amendment 1274 #
Proposal for a directive
Article 91 – paragraph 2
Article 91 – paragraph 2
2. The competent authorities shall, without delay, provide ESMA with all information necessary to carry out its duties under this Directive and in accordance with Article 35 of Regulation (EU) No 1095/2010 and, as appropriate, provide the ESCB central banks with all information relevant for the performance of their respective tasks.
Amendment 1276 #
Proposal for a directive
Article 91 a (new)
Article 91 a (new)
Article 91a ESMA advisory committee on high- frequency trading By 30 June 2014, ESMA shall set up an advisory committee of national experts to determine developments of high- frequency trading that could potentially constitute market manipulation with a view to: (a) increasing ESMA's knowledge about high-frequency trading; and (b) providing a list of abusive practices with regard to high-frequency trading, including spoofing, quote stuffing and layering, for the purpose of Article 5(1a) of Regulation (EU) No .../2012 of the European Parliament and of the Council of ... [MAR].
Amendment 1298 #
Proposal for a directive
Annex 1 – Section A – point 10 a (new)
Annex 1 – Section A – point 10 a (new)
(10a) Algorithmic trading;
Amendment 1317 #
Proposal for a directive
Annex 2 – part I – paragraph 1 – point 1 – point h
Annex 2 – part I – paragraph 1 – point 1 – point h
Amendment 1319 #
Proposal for a directive
Annex 2 – part II – point II.1 – paragraph 1
Annex 2 – part II – point II.1 – paragraph 1
Clients other than those mentioned in section I, inbut excluding public sector bodies, local public authorities, and municipalities and private individual investors, may also be allowed to waive some of the protections afforded by the conduct of business rules.