43 Amendments of Pascal CANFIN related to 2010/2075(INI)
Amendment 4 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas the adoption of the MiFID was based on the wrong assumption that competition between market infrastructures is desirable and would necessarily lead to a cost reduction of these infrastructures;
Amendment 5 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas market infrastructures are public goods that require a proper degree of centralisation and specific treatment in order to insure cost efficiency and avoid private monopolies;
Amendment 13 #
Motion for a resolution
Recital B a (new)
Recital B a (new)
Ba. whereas MiFID has led to more complex, fragmented and opaque financial markets reducing the ability of supervisory authorities to screen and control markets;
Amendment 18 #
Motion for a resolution
Recital B c (new)
Recital B c (new)
Bc. whereas MiFID, that was originally supposed to move the trades to regulated venues (RM, MTF, SI), failed to reduce OTC market share as long as around 40% of the trading volume are made over the counter (OTC);
Amendment 20 #
Motion for a resolution
Recital B b (new)
Recital B b (new)
Bb. whereas the fragmentation induced by MiFID has had a detrimental effect on the functioning of financial markets in the European Union by reducing liquidity in regulated venues, by increasing opacity and by disturbing the price discovery process;
Amendment 23 #
Motion for a resolution
Recital C
Recital C
C. whereas market fragmentation has had an inevitable impact upon liquidity and market efficiency, and whereas the effect of an increased number of venues and increasingly technology-driven trading has significantly decreased average order execution size from EUR 22 266 in 2006 to EUR 9 923 in 2009, and increased the total cost of transactions for final users,
Amendment 28 #
Motion for a resolution
Recital D
Recital D
D. whereas the decrease in order size has led to a reduction in the capacity of market participants to instantly execute large orders on a particular market and has encouraged the expansion of dark-pool trading, and whereas less thanaround 10% of all trading in EEA equities shares on organised markets use the MiFID pre-trade transparency waivers (CESR/10-394), which means therefore that combined with the OTC trades, around 50% of the trades are currently not covered by pre- trade transparency requirements;
Amendment 32 #
Motion for a resolution
Recital D a (new)
Recital D a (new)
Da. whereas there is evidence that the use of pre-trade transparency waivers provided in MiFID has been growing rapidly,
Amendment 33 #
Motion for a resolution
Recital E
Recital E
E. whereas broker crossing networks (BCNs) provide different services to regulated markets (RMs) and multilateral trading facilities (MTFs) in so far as they are closed systems and a technological extension of the traditional, discretionary broker-client relationshipare a circumvention to MiFID regulation; whereas the level playing field between BCNs and regulated venues (RM, MTF, SI) is not insured as BCN operate systems that match buying and selling orders whilst they are not submitted to any pre-trade transparency requirement; whereas crossing networks seem to execute large as well as small orders away from RM and MTF,
Amendment 40 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
Ea. whereas certain type of business operation of automated multilateral liquidity pools poses a particular concern for price formation and fair competition;
Amendment 41 #
Motion for a resolution
Recital F
Recital F
F. whereas the challenge involves keeping the benefits of competition in terms of more competitive and innovative trading infrastructure whilst ensuringhas not been proved as the total transaction costs were not reduced, the opacity has increased while at the same time, it appears clearly that quality and integrity for all participants in a more fragmented market are not properly guaranteed,
Amendment 44 #
Motion for a resolution
Recital G
Recital G
G. whereas the risks associated with electronic order systems and the significant share of trading volumes attributable to HFT strategies, estimated at 30-50 %, were manifest in the US "‘flash crash"’ on 6 May 2010; when HFT liquidity providers exited the marketreas these strategies do not deliver any tangible benefit for the real economy and in particular for SMEs,
Amendment 48 #
Motion for a resolution
Recital G a (new)
Recital G a (new)
Ga. whereas HFT distorts the price discovery process on markets by posting orders that are mostly non executed; whereas HFT does not provide real liquidity as orders are not kept in order books for a sufficient lenght of time; whereas the challenges raised by HFT in terms of market abuse detection and surveillance require a carefull and comprehensive assessement,
Amendment 57 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
Ha. whereas retail investors do not benefit from the MiFID; whereas the MiFID does not improve the access of SMEs to capital market and the financing of the real economy which is the main purpose of financial markets,
Amendment 60 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Deems that corrective measures must be taken in order to ensure that all kinds of trading with the same functionality should be regulated and supervised in the same way;
Amendment 67 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Suggests that, in the interests of equitable treatment, rules need to be introduced such that MTFs transacting either a similargnificant volume of trade or having a similar market impact to an RM (subject to a threshold) are subject to the same level of supervision and therefore regulated in a comparable way;
Amendment 69 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Asks for an investigation into the functioning of the systematic internaliser (SI) regime and of OTC trades and the bringing forward of improvrequirements to the way in which this category is regulated to increase its use as a subset of OTCreduce the market share of OTC trades;
Amendment 80 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls for a review of whetheronsiders that order-by- order best execution needs to be better served by regulation in relation to the availability of data, both post-trade and in relation to execution quality, and in relation to market technology, such as order routers and venue connections; calls for the introduction of a consolidated order book of all trading venues in order to guarantee an effective best execution to market participants;
Amendment 81 #
Motion for a resolution
Paragraph 6 – introductory part
Paragraph 6 – introductory part
6. Calls for the introduction of new provisions in MIFID for BCNs equivalent to the requirements on SI including requirements to submit to the competent authorities:
Amendment 91 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Calls for an investigation into a suitable volume threshold above which BCNs would be required to convert to an MTF and OTC transactions to move to regulated venues;
Amendment 97 #
Motion for a resolution
Paragraph 8
Paragraph 8
Amendment 111 #
Motion for a resolution
Paragraph 10 – point a
Paragraph 10 – point a
Amendment 115 #
Motion for a resolution
Paragraph 10 – point b
Paragraph 10 – point b
(b) consider whetherintroduce a suitable minimum threshold should be introduced for the Reference Price waiver to encourage the use ofmaintain adequate flow of trades through lit venues,
Amendment 121 #
Motion for a resolution
Paragraph 10 – point c
Paragraph 10 – point c
(c) broadenlimit the Reference Price waiver to include trades that fall within’s scope to trades that are done at midpoint of the current spread in the reference market;
Amendment 123 #
Motion for a resolution
Paragraph 10 – point c a (new)
Paragraph 10 – point c a (new)
(ca) introduces a maximum volume of transactions that could use pre-trade transparency waivers in order to guarantee efficient price discovery,
Amendment 124 #
Motion for a resolution
Paragraph 10 – point c b (new)
Paragraph 10 – point c b (new)
(cb) give the possibility to ESMA to adapt and restrict pre-trade waivers as necessary, taking into account the impact of dark trading on the efficiency of markets,
Amendment 125 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Asks for a more uniform application of the pre-trade waivers across Member States to limit implementing differences that can lead to uncertainty, regulatory arbitrage and an unlevel playing field; suggests that technical standards defined by ESMA could be an appropriate way of achieving this, in keeping with the concept of a single rule book for financial services;
Amendment 127 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Calls on the Commission to establish a working group to overcome the barriers to a European consolidated tape and establish a privately run system that doesNotes that private actors have failed to offer a cheap and exhaustive post-trade transparency in the European Union. Therefore, calls on the Commission to establish a mandatory European consolidated tape; considers that this tape should be ruled by ESMA and be a public or privately run system paid by users of financial infrastructure in order not to place any further financial burdens on taxpayers to a Commission-defined deadline;
Amendment 136 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Calls on the CESRMA to draw up common reporting standards and formats for the reporting of post-trade data to aid in data consolidation;
Amendment 140 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Calls for a reduction in the time limit for deferred publication, through specific technical standards defined by ESMA so that transactions are reported within twenty-four hours of taking place; with regards to electronic transactions,; deems that immediate availability should become the rule as in the US and that any delay should be justified or sanctioned; calls ESMA to insure that maximum delays are not considered by venues as minimum as it is now the case with the three minutes delays; stresses that in ordinary circumstances, delays of more than 1 minute should be considered unacceptable;
Amendment 142 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15a. Deems that it is essential to analyze the breakdown and business models of OTC trading calls therefore for the introduction of specific flags in pre and post-trade transparency for OTC trades to further understand the characteristics of such OTC trades and assess which types of transactions are legitimate to be done OTC due to their specific characteristics;
Amendment 145 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Calls for an examination of the costs and benefits of HFT on markets and itsonsiders that HFT has a detrimental impact upon other market users, particularly institutional investors, to determine whether themarkets by biasing price discovery process and that significant market flow generated automatically isare not providing real liquidity to the market and what affect this hass the immense majority onf overall price discoveryrder are not executed;
Amendment 147 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Calls for an examination of the costs and benefits of HFT on markets and its impact upon other market users, particularly institutional investors, to determine whether the significant market flow generated automatically is providing real liquidity to the market and what affect this has on overall price discovery; Considers that ESMA should analyse the possibility to impose minimal latency between the introduction of an order and the possibility to withdraw it;
Amendment 155 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Calls for the regulation of firms that pursue HFT strategies to ensure that they have robust systems and controls with ongoing regulatory reviews of the algorithms they use and the ability to demonstrate that they have strong risk management procedures in place for abnormal events;
Amendment 157 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Calls for all trading venues allowing co-location of servers, whether directly or through third-party data providers, to ensure that equal access for all co-located clients is maintained and where possible under the same infrastructure latency arrangements to comply with non- discriminatory practice outlined in MiFID; considers that sprint race to reduce latency should be stopped as high speed transactions do not deliver benefits to the real economy and to the better functioning of markets and only lead to an inflation of infrastructure costs;
Amendment 158 #
Motion for a resolution
Paragraph 20 – introductory part
Paragraph 20 – introductory part
20. Calls on regulators to monitor and regulate the provision of sponsored access and to consider additional measures includingforbid sponsored access:
Amendment 160 #
Motion for a resolution
Paragraph 20 – point a
Paragraph 20 – point a
Amendment 162 #
Motion for a resolution
Paragraph 20 – point b
Paragraph 20 – point b
Amendment 165 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Calls on the Commission to adopt the principles being developed by the Technical Committee of IOSCOrules that impose on clients benefiting on on direct electronic access, including sponsored access, which will cover the criteria for selecting clients who can be given sponsored access and the contractual relationship between the platform, the member and the client and will outline their respective responsibilities regarding their usage with suitable controls and filtersequivalent requirements as those imposed to the member or the platform;
Amendment 167 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Calls for an investigation intoESMA to define binding guidelines on fee structures in order to ensure that execution fees, ancillary fees and any other related incentives are transparent, non- discriminatory and consistent with reliable price formation and are designed and implemented so as not to encourage trading for improper purposes; , given the amount of investments related to HFT deems in particular that a minimal charge should be paid by users posting orders, whether these orders are executed or not, as these orders need to be managed by the market infrastructure;
Amendment 171 #
Motion for a resolution
Paragraph 24
Paragraph 24
24. Suggests a study ofConsiders that the maker/taker fee model to determine whether any recipient of theleads in practice to encouraging trading for improper purposes; stresses that any more favourable "‘maker"’ fee structure should also be subject to formal market maker obligations and supervision requirements defined by ESMA;
Amendment 175 #
Motion for a resolution
Paragraph 25
Paragraph 25
25. Asks that European trading venues havefor an ESMA supervision and definition by implementing acts of robust volatility interrupts and circuit breakers which operate simultaneously across all EU trading venues to prevent a US- style "‘flash crash"’ event;
Amendment 180 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Requests the consideration ofCalls for the introducingtion of a transparency requirement, pre and post trade, on all non-equity financial instruments subject to significant secondary trading, including government and corporate bond markets and commodities derivatives markets, to be applied in an asset-specific manner;