175 Amendments of Pascal CANFIN related to 2011/0298(COD)
Amendment 218 #
Proposal for a directive
Recital 4
Recital 4
(4) The financial crisis has exposed weaknesses in the functioning and in the transparency of financial markets. The evolution of financial markets have exposed the need to strengthen the framework for the regulation of markets in financial instruments in order to increase transparency, better protect investors, reinforce confidence, reduceensure there are no unregulated areas, ensure that supervisors are granted adequate powers to fulfil their tasks.
Amendment 223 #
Proposal for a directive
Recital 9
Recital 9
(9) A range of fraudulent practices have occurred in spot secondary markets in emission allowances (EUA) which could undermine trust in the emissions trading schemes, set up by Directive 2003/87/EC, and measures are being taken to strengthen the system of EUA registries and conditions for opening an account to trade EUAs. In order to reinforce the integrity and safeguard the efficient functioning of those markets, including comprehensive supervision of trading activity, it is appropriate to complement measures taken under Directive 2003/87/EC by bringing emission allowances fully into the scope of this Directive and of Regulation ----/-- [Market Abuse Regulation], by classifying them as financial instruments.
Amendment 241 #
Proposal for a directive
Recital 14
Recital 14
(14) Persons administering their own assets and undertakings, who do not provide investment services and/or perform investment activities other than dealing on own account should not be covered by the scope of this Directive unless they are market makers, members or participants of a regulated market or MTF, or they are engaged in algorithmic trading, or they execute orders from clients by dealing on own account. By way of exception, persons who deal on own account in financial instruments as members or participants of a regulated market or MTF, including as market makers in relation to commodity derivatives, emission allowances, or derivatives thereof, as an ancillary activity to their main business, which on a group basis is neither the provision of investment services within the meaning of this Directive nor of banking services within the meaning of Directive 2006/48/EC, should not be covered by the scope of this Directive. Technical criteria for when an activity is ancillary to such a main business should be clarified in delegated acts. Dealing on own account by executing client orders should include firms executing orders from different clients by matching them on a matched principal basis (back to back trading), which should be regarded as acting as principals and should be subject to the provisions of this Directive covering both the execution of orders on behalf of clients and dealing on own account. The execution of orders in financial instruments as an ancillary activity between two persons whose main business, on a group basis, is neither the provision of investment services within the meaning of this Directive nor of banking services within the meaning of Directive 2006/48/EC should not be considered as dealing on own account by executing client orders.
Amendment 249 #
Proposal for a directive
Recital 32
Recital 32
(32) Directive 2007/44/EC of the European Parliament and of the Council of 5 September 2007 amending Council Directive 92/49/EEC and Directives 2002/83/EC, 2004/39/EC, 2005/68/EC and 2006/48/EC as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector has provided for detailed criteria for the prudential assessment of proposed acquisitions in an investment firm and for a procedure for their application. In order to provide legal certainty, clarity and predictability with regard to the assessment process, as well as to the result thereof, it is appropriate to confirm the criteria and the process of prudential assessment laid down in Directive 2007/44/EC. In particular, competent authorities should appraise the suitability of the proposed acquirer and the financial soundness of the proposed acquisition against all of the following criteria: the reputation of the proposed acquirer; the reputation and experience of any person who will direct the business of the investment firm; the financial soundness of the proposed acquirer; whether the investment firm will be able to comply with the prudential requirements based on this Directive and other Directives, notably, Directives 2002/87/EC and 2006/49/EC ; whether the acquisition will create conflicts interests; whether there are reasonable grounds to suspect that money laundering or terrorist financing within the meaning of Article 1 of Directive 2005/60/EC is being or has been committed or attempted, or that the proposed acquisition could increase the risk thereof.
Amendment 258 #
Proposal for a directive
Recital 46
Recital 46
(46) The use of trading technology has increased the speed, capacity and complexity of how investors trade. It has also enabled market participants to facilitate direct access by their clients to markets through the use of their trading facilities, through direct electronic access or sponsored and direct market access. TradHFT brings technology has provided benefits to the market and market participants generally such as wider participation in markets, increased liquidity, narrower spreads, reduced short term volatility and the means to obtain better executionrading volume to markets but very little executable liquidity, as quotes rest for milliseconds only in the order book and cancellation rates are extremely high. Slightly tighter spreads do not compensate for lack of depth, resting time of orders for clients. Yet,inventory. There is evidence that this trading technology also gives rise to a number of potential risks such as an increased risk of the overloading of the systems of trading venues due to large volumes of orders, risks of algorithmic trading generating duplicative or erroneous orders or otherwise malfunctioning in a way that may create a disorderly market. In particular there is evidence that high- frequency trading technology, in providing an information advantage to its users, may have contributed to the increased use of dark liquidity pools by institutional investors, such as pension funds, seeking to avoid potential negative impact on execution prices when their orders are detected by high-frequency traders. In addition there is the risk of algorithmic trading systems overreacting to other market events which can exacerbate volatility if there is a pre-existing market problem. In addition HFT profits made in this way come at the expense of other investors such as pension savers. Finally, algorithmic trading or high frequency can lend itself to certain forms of abusive behaviour if misused. Such risks imply high costs of infrastructure and surveillance associated with HFT.
Amendment 266 #
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 all high frequency trading firms be authorised when they are a direct member of a trading venue. It is also necessary to be able to clearly identify order flows coming from automated trading. This should ensure they are subject to organisational requirements under the Directive and are properly supervised.
Amendment 271 #
Proposal for a directive
Recital 48
Recital 48
(48) Both firms and trading venues should ensure robust measures are in place to ensure that automated trading does not create a disorderly market and cannot be used for abusive purposes and that automated trading technology is thoroughly tested before access is granted to a venue. Trading venues should also ensure their trading systems are resilient and properly tested to deal with increased order flows or market stresses and that circuit breakers are in place to temporarily halt trading consistently on all trading venues if there are sudden unexpected price movements. Trading venues should not offer privileged access to information to operators of automated trading as this gives them an unfair advantage over other participants in the market.
Amendment 272 #
Proposal for a directive
Recital 48 a (new)
Recital 48 a (new)
(48a) Trading strategies that generate very large numbers of orders most of which are cancelled or closed out by the end of the day may take up a significant portion of the trading system capacity while providing little effective liquidty to other market participants. It is therefore necessary to ensure that the fee structures of trading venues are transparent, non- discriminatory and fair and that they are structured in such a way as to promote that costs of infrastructure are passed on to clients proportionally to their use of trading system capacity and orderly trading conditions in markets. It is therefore appropriate to ensure that higher fees apply to practices involving high messaging or cancellation rates relative to effective trades which could create such disorderly conditions.
Amendment 274 #
Proposal for a directive
Recital 49
Recital 49
(49) In addition to measures relating to algorithmic and high frequency trading it is appropriate to include controls relating to investment firms providing direct electronic access to markets for clients as electronic trading can be carried out via a firm providing electronic market access and many similar risks. It is also appropriate that firms providing direct electronic access ensure that persons using this service are properly qualified and that risk controls are imposed on the use of the service. It is appropriate that detailed organisational requirements regarding these new forms of trading should be prescribed in more detail in delegated acts. This should ensure that requirements may be amended where necessary to deal with further innovation and developments in this areaban direct electronic access to markets for clients.
Amendment 281 #
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 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.
Amendment 310 #
Proposal for a directive
Recital 60
Recital 60
(60) Information provided by investment firms to clients in relation to their order execution policies often are generic and standard and do not allow clients to understand how an order will be executed and to verify firms' compliance with their obligation to execute orders on term most favourable to their clients. In order to enhance investor protection it is appropriate to specify the principles concerning the information given by investment firms to their clients on the order execution policies and to require firms to make public, on an annual monthly basis, for each class of financial instruments, the top five execution venues where they executed client orders in the preceding year and a detailed analysis of the quality of execution.
Amendment 311 #
Proposal for a directive
Recital 61
Recital 61
Amendment 324 #
Proposal for a directive
Recital 73
Recital 73
(73) The provision of services to retail clients should always require the establishment of a branchsubsidiary in the Union. The establishment of the branch to provide services to professional clients 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 337 #
Proposal for a directive
Recital 78
Recital 78
(78) The introduction of a commercial solution for a consolidated tape for equities should contribute to creating a more integrated European market and make it easier for market participants to gain access to a consolidated view of trade transparency information that is available. The envisaged solution is based on an authorisation of providers working along pre-defined and supervised parameters which are in competition with each other in order to achieve technically highly sophisticated and innovative solutions, serving the market to the greatest extent possible. In case commercial solutions fail to provide an effective consolidated tape for equities, the European Commission should bring forward a public solution for a consolidated tape for equities able to achieve effective post-trade transparency.
Amendment 344 #
Proposal for a directive
Recital 84
Recital 84
(84) The powers made available to competent authorities should be complemented with explicit powers to demandobtain information on a regular basis from any person regarding the size and purpose of a position in derivatives contracts related to commodities and to request the person to take steps to reduce the size of the position in the derivative contracts.
Amendment 347 #
Proposal for a directive
Recital 85
Recital 85
(85) Explicit powers should be granted to competent authorities to limit the ability of any person or class of persons from entering into a derivative contract in relation to a commodity. The application of a limit should be possible both in the case of individual transactions and positions built up over time. In the latter case in particular, the competent authority should ensure that these position limits are non- discriminatory, clearly spelled out, take due account of the specificity of the market in question, and are necessary to secure the integrity and orderly functioning of the market, as well as to eliminate excessive speculation.
Amendment 349 #
Proposal for a directive
Recital 86
Recital 86
(86) All venues which offer trading in commodity derivatives should have in place appropriate limits orand suitable alternativedditional arrangements designed to support liquidity, prevent market abuse, and ensure the orderly pricinge discovery function and settlement conditions as well as to eliminate excessive speculation. ESMA should maintain and publish a list containing summaries of all such measures in force. These limits orand arrangements should be applied in a consistent manner and take account of the specific characteristics of the market in question. They should be clearly spelled out as regards to whom they apply and any exemptions thereto, as well as to the relevant quantitative and qualitative thresholds which constitute the limits or which may trigger other obligations. The Commission should be empowered to adopt delegated actregulatory technical standards, including with a view to avoiding any divergent effects of the limits orand arrangements applicable to comparable contracts on different venues.
Amendment 350 #
Proposal for a directive
Recital 87
Recital 87
(87) Venues where the most liquid commodity derivatives are traded should publish an aggregated weekly breakdown of the positions held by different types of market participants, including the clients of those not trading on their own behalf. A comprehensive and detailed breakdown both by the type and identity of the market participant should be made availablenotified to the competent authority upon requeston a regular basis.
Amendment 353 #
Proposal for a directive
Recital 88
Recital 88
(88) Considering the communiqué of G20 finance ministers and central bank governors of 15 April 2011 on ensuring that participants on commodity derivatives markets should be subject to appropriate regulation and supervision, the exemptions from Directive 2004/39/EC.for various participants active in commodity derivative markets should be modified to ensure that activities by firms, which are not part of a financial group, involving the hedging of production-related and other risks as well as the provision of investment services in commodity or exotic derivatives on an ancillary basis to clients of the main business remain exempt if the size or the impact of this activity is not significant on that market, but that firms specialising in trading commodities and commodity derivatives are brought within this Directive.
Amendment 364 #
Proposal for a directive
Recital 113
Recital 113
(113) The establishment of a consolidated tape for non-equity instruments is deemed to be more difficult to implement than the consolidated tape for equity instruments and potential providers should be able to to gain experience with the latter before constructing it. In order to facilitate the proper establishment of the consolidated tape for non-equity financial instruments, it is therefore appropriate to provide for an extended date of application of the national measures transposing the relevant provision. In case commercial solutions fail to provide an effective consolidated tape for non-equity instruments, the European Commission should bring forward a public solution for a consolidated tape for non-equity instruments able to achieve effective post- trade transparency.
Amendment 376 #
Proposal for a directive
Article 2 – paragraph 1 – introductory part
Article 2 – paragraph 1 – introductory part
1. TWithout prejudice to the reporting obligation referred to in Title IV, this Directive shall not apply to:
Amendment 381 #
Proposal for a directive
Article 2 – paragraph 1 – point d – point ii
Article 2 – paragraph 1 – point d – point ii
(ii) are a member of or a participant in a regulated market or MTF or have a direct electronic access in a regulated market or MTF; or
Amendment 386 #
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) deal on own account by using algorithmic trading; or
Amendment 388 #
Proposal for a directive
Article 2 – paragraph 1 – point d – point iii
Article 2 – paragraph 1 – point d – point iii
(iii) deal on own account bywhen executing client orders; or
Amendment 390 #
Proposal for a directive
Article 2 – paragraph 1 – point d – point iii a (new)
Article 2 – paragraph 1 – point d – point iii a (new)
(iiia) are not operators with compliance obligations under Directive 2003/87/EC (Emission Trading Scheme) in the case of emmission allowances;
Amendment 392 #
Proposal for a directive
Article 2 – paragraph 1 – point d – subparagraph 2
Article 2 – paragraph 1 – point d – subparagraph 2
Amendment 401 #
Proposal for a directive
Article 2 – paragraph 1 – point i – indent 1
Article 2 – paragraph 1 – point i – indent 1
– deal on own account in financial instruments, excluding persons who deal on own account bywhen executing client orders, or by using algorithmic trading, or
Amendment 405 #
Proposal for a directive
Article 2 – paragraph 1 – point i – indent 2 a (new)
Article 2 – paragraph 1 – point i – indent 2 a (new)
– deal on own account in emission allowances, excluding persons who are not operators with compliance obligations under Directive 2003/87/EC (Emission Trading Scheme);
Amendment 406 #
Proposal for a directive
Article 2 – paragraph 1 – point i – indent 3
Article 2 – paragraph 1 – point i – indent 3
– provide investment services, other than dealing on own account, in commodity derivatives or derivative contracts included in Annex I, Section C 10 or emission allowances or derivatives thereof to the clients of their main business, to the extent that the transactions involved in the investment services provided are directly related to the hedging of its main commercial business and physical activity,
Amendment 408 #
Proposal for a directive
Article 2 – paragraph 1 – point i – subparagraph 2
Article 2 – paragraph 1 – point i – subparagraph 2
provided that in all cases this is an ancillary activity to their main business, when considered on a group basis, and that the size and characteristics of the ancilliary business does not represent a significant proportion or has a significant impact in the market in which it operates, and that main business is not the provision of investment services within the meaning of this Directive or banking services under Directive 2006/48/EC ;
Amendment 422 #
Proposal for a directive
Article 2 – paragraph 3 – subparagraph 1
Article 2 – paragraph 3 – subparagraph 1
Amendment 426 #
Proposal for a directive
Article 2 – paragraph 3 – subparagraph 2 – introductory part
Article 2 – paragraph 3 – subparagraph 2 – introductory part
The criteria for determining whether an activity is ancillary to the main business and that the size and characteristics of the ancillary business does not represent a significant proportion or has a significant impact in the market in which it operates shall take into account at least the following elements:
Amendment 435 #
Proposal for a directive
Article 2 – paragraph 3 – subparagraph 2 – indent 2 a (new)
Article 2 – paragraph 3 – subparagraph 2 – indent 2 a (new)
– the market share on the specific market and the size of positions held.
Amendment 440 #
Proposal for a directive
Article 2 – paragraph 3 – subparagraph 2 a and 2b (new)
Article 2 – paragraph 3 – subparagraph 2 a and 2b (new)
ESMA shall submit those draft regulatory technical standards to the Commission by [31 December 2012]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 447 #
Proposal for a directive
Article 3 – paragraph 1 – subparagraph 1 – indent 3 – point v – point i
Article 3 – paragraph 1 – subparagraph 1 – indent 3 – point v – point i
(i) conditions and procedures for authorisation and on-going supervision as established in Article 5 (1) and (3), Articles 7, 8, 9, 10, 21, 22 and 223 and the respective implementing measures adopted by the Commission by means of delegated acts in accordance with Article 94;
Amendment 448 #
Proposal for a directive
Article 3 – paragraph 1 – subparagraph 1 – indent 3 – point v – point ii a (new)
Article 3 – paragraph 1 – subparagraph 1 – indent 3 – point v – point ii a (new)
(iia) organisation requirements as established in Article 16 (3) and the respective implementing measures adopted by the Commission by means of delegated acts in accordance with Article 94.
Amendment 451 #
Proposal for a directive
Article 3 – paragraph 3 a (new)
Article 3 – paragraph 3 a (new)
3a. These national regimes may allow the competent authorities to delegate administrative, preparatory or ancillary tasks related to the granting of an authorisation, the review of the conditions for initial authorisation and the regular monitoring of operational requirements mentioned in Articles 5, 21 and 22, in accordance with the conditions laid down in Article 69(2).
Amendment 452 #
Proposal for a directive
Article 4 – paragraph 2 – point 1 – paragraph 1
Article 4 – paragraph 2 – point 1 – paragraph 1
1) ‘Investment services and activities’ means any of the services and activities listed in Section A of Annex I relating to any of the instruments listed in Section C and Ca of Annex I;
Amendment 459 #
Proposal for a directive
Article 4 – paragraph 2 – point 5
Article 4 – paragraph 2 – point 5
5) ‘Dealing on own account’ means trading against proprietary capital resulting in the conclusion of transactions in one or more financial instruments, including 'riskless principal trading' which consists in the execution of orders from different clients by matching them on a matched principal basis;
Amendment 464 #
Proposal for a directive
Article 4 – paragraph 2 – point 14
Article 4 – paragraph 2 – point 14
14) ‘Financial instrument’ means those instruments specified in Section C of Annex I and CA of Annex I for the exclusive purpose of this Directive, the Regulation (EU) No .../... [MiFIR] and of the Regulation (EU) No .../... [Market Abuse Regulation] and the Directive (EU) No .../... [Market Abuse Directive];
Amendment 474 #
Proposal for a directive
Article 4 – paragraph 2 – point 30 a (new)
Article 4 – paragraph 2 – point 30 a (new)
30a) 'High-frequency trading' means a form of algorithmic trading whose profitability depends on the use of technology to be able to transmit, cancel or modify orders at intervals approaching the minimum physical latency of the mechanism for transmitting, cancelling or modifying orders;
Amendment 479 #
Proposal for a directive
Article 4 – paragraph 2 – point 30 b (new)
Article 4 – paragraph 2 – point 30 b (new)
30b) 'High frequency 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: - order initiation, generating, routing and execution are determined by the system without human intervention for each individual trade or order; - a short time-frame for establishing and liquidating positions; - a high daily portfolio turnover; - a high order-to-trade ratio intraday; and - ending the trading day at or close to a flat position.
Amendment 491 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 a (new)
Article 4 – paragraph 2 – point 33 a (new)
33a) 'Excessive speculation' for the purposes of this regulation is a trading activity in any asset under contracts of sale of such asset for future delivery made on or subject to the rules of trading venues or OTC markets with respect to a significant price discovery contract, causing or presenting a significant risk of causing volatility, distortions or unwarranted changes in the orderly price formation of such asset or causing price formation to diverge from fundamentals.
Amendment 495 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 b (new)
Article 4 – paragraph 2 – point 33 b (new)
Amendment 500 #
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 94ESMA shall submit draft regulatory technical standards to the Commission concerning measures to specify some technical elements of the definitions laid down in paragraph 1 of this Article, inter alia to adjust them to market developments. ESMA shall submit drafts for those regulatory technical standards to the Commission by [31 December 2012]. Power is delagated to the Commission to adopt the regulatory technical standards referred to the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 521 #
Proposal for a directive
Article 9 – paragraph 1 – point a – paragraph 2 – subparagraph 4 a (new)
Article 9 – paragraph 1 – point a – paragraph 2 – subparagraph 4 a (new)
Members of the management body shall not combine at the same time the executive directorship in an investment firm with the executive directorship in a regulated market, MTF or OTF, even within the same group.
Amendment 543 #
Proposal for a directive
Article 9 – paragraph 6 – subparagraph 1 – point d a (new)
Article 9 – paragraph 6 – subparagraph 1 – point d a (new)
(da) ensure that the remuneration policy of the sales staff, in particular as regards variable remuneration, does not incentivise risky conduct of business and avoid conflicts of interest.
Amendment 549 #
Proposal for a directive
Article 13 – paragraph 1 – subparagraph 1 – point d a (new)
Article 13 – paragraph 1 – subparagraph 1 – point d a (new)
(da) whether the proposed acquisition increases the risk of conflicts of interest;
Amendment 559 #
Proposal for a directive
Article 16 – paragraph 7 – subparagraph 1
Article 16 – paragraph 7 – subparagraph 1
Records shall include the recording of telephone conversations or electronic communications involving, at least, transactions concluded when dealing on own account and client orders when the services of reception and transmission of orders and execution of orders on behalf of clients are provided and orders on behalf of clients when the service of portfolio management is provided.
Amendment 564 #
Proposal for a directive
Article 16 – paragraph 7 – subparagraph 2 a (new)
Article 16 – paragraph 7 – subparagraph 2 a (new)
When telephone conversations between an investment firm and a retail client are not limited to the provision of investment services, Member States may choose to allow alternative arrangements of the same effect to records of telephone conversation between investment firm and retail client for transactions not exceeding 1000 EUR.
Amendment 565 #
Proposal for a directive
Article 16 – paragraph 7 – subparagraph 2 b (new)
Article 16 – paragraph 7 – subparagraph 2 b (new)
Relevant persons of the investment firm shall be allowed to undertake the conversations and communications referred to in subparagraph 1 only on equipment belonging to the investment firm and of which records are kept.
Amendment 566 #
Proposal for a directive
Article 16 – paragraph 8 – subparagraph 2 a (new)
Article 16 – paragraph 8 – subparagraph 2 a (new)
Member States shall not allow investment firms to enter into arrangements for securities financing transactions in respect of financial instruments held by them on behalf of a client, or otherwise use such financial instruments for their own account or the account of another client of the firm, unless the following conditions are met: (a) the client must have given his prior express consent to the use of the instruments on specified terms, as evidenced, in the case of a retail client, by his signature or equivalent alternative mechanism of a specific acceptation document; (b) the use of that client's financial instruments must be restricted to the specified terms to which the client consents and the clients shall be informed on a case-by-case basis each time its assets are used, (c) a major part of the income made on the use of client's instruments shall be reassigned to the client. An investment firm shall allow its clients to refuse on a case by case basis the use of their financial instruments.
Amendment 576 #
Proposal for a directive
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1a. Investment firms shall request authorisation from a regulated market, MTF or OTF when they wish to connect new or modified automated trading systems to the systems of that market. A new or modified system shall not be deployed for trading on a regulated market, MTF or OTF until and unless the market operator provides written approval in accordance with paragraph 3a of Article 51.
Amendment 578 #
Proposal for a directive
Article 17 – paragraph 1 b (new)
Article 17 – paragraph 1 b (new)
1b. An investment firm that engages in algorithmic trading shall submit to its competent authority, promptly upon request by the authority, information about its algorithms, including source code, program design, as well as documentation of the systems and risk controls referred to in paragraph 1. Such firms shall also ensure that they are able to produce, promptly upon request by a trading venue or the competent authority, a detailed record of their daily quotation and trading activities.
Amendment 595 #
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 it 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 strategy posts firm quotes at competitive prices at all times 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 598 #
Proposal for a directive
Article 17 – paragraph 3 a (new)
Article 17 – paragraph 3 a (new)
3a. An investment firm that operates a high frequency trading strategy shall ensure that any position in a financial instrument bought or sold is maintained for at least 30 seconds.
Amendment 601 #
Proposal for a directive
Article 17 – paragraph 4
Article 17 – paragraph 4
4. An iInvestment 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 thes shall not provide direct electronic access to a trading venue.
Amendment 632 #
Proposal for a directive
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Member States shall require that the rules mentioned in Article 18(43) governing access to an MTF comply with the conditions established in Article 55(3).
Amendment 633 #
Proposal for a directive
Article 19 – paragraph 2 – subparagraph 1 a (new)
Article 19 – paragraph 2 – subparagraph 1 a (new)
Member States shall require that rules governing access ensure that the MTF remains an effective multilateral system, which brings together a significant number of multiple third-party buying and selling interests in financial instruments.
Amendment 635 #
Proposal for a directive
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Member States shall require that investment firms or market operators operating an MTF to have arrangements to identify clearly and manage the potential adverse consequences, for the operation of the MTF or for its participants, of any conflict of interest between the interest of the MTF, its owners or its operator and the sound functioning of the MTF to comply with the conditions established in Articles 48, 49, and 50.
Amendment 639 #
Proposal for a directive
Article 19 – paragraph 5 a (new)
Article 19 – paragraph 5 a (new)
5a. ESMA shall develop draft regulatory technical standards to determine criteria that demonstrate the effectiveness of a multilateral system. ESMA shall submit those draft regulatory technical standards to the Commission by […]*. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010. ______________ *OJ please insert date: …
Amendment 648 #
Proposal for a directive
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Member States shall require that investment firms and market operators operating an OTFs establish arrangements preventing the execution of client orders in an OTF against the proprietary capital of the investment firm or market operator operating the OTF. The investment firm shall not act as a systematic internaliser in an OTF operated by itself or from any entity part of the same corporate group and/ or legal entity as the investment firm and/ or market operator. The investment firm or market operator or any entity part of the same corporate group and/ or legal entity as the investment firm and/ or market operator shall not act as a systematic internaliser in an OTF operated by itself and an OTF shall not connect with a systematic internaliser in a way which enables orders in an OTF and orders or quotes in a SI to interact. An OTF shall not connect with another OTF in a way which enables orders in different OTFs to interact.
Amendment 657 #
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
2. A request for authorisation as an OTF shall include a detailed explanation why the system does not correspond to and cannot operate as either a regulated market, MTF, or systematic internaliser. This explanation shall be transmitted to ESMA. ESMA shall within one month issue an opinion on whether it considers the explanation demonstrates that the system does not correspond to and cannot operate as either a regulated market, MTF, or systematic internaliser.
Amendment 658 #
Proposal for a directive
Article 20 – paragraph 2 a (new)
Article 20 – paragraph 2 a (new)
2 a. After receiving the opinion of ESMA, the home Member State of the OTF shall only grant the authorisation to operate an OTF where the explanation given demonstrates that the system does not correspond to and cannot operate as either a regulated market, MTF, or systematic internaliser.
Amendment 659 #
Proposal for a directive
Article 20 – paragraph 2 b (new)
Article 20 – paragraph 2 b (new)
2 b. Where a competent authority disagrees with the assessment of the home Member State of the OTF that the system does not correspond to and cannot operate as either a regulated market, MTF, or systematic internaliser, that competent authority may refer the matter back to ESMA, which may act in accordance with the powers conferred on it under Article 19 of Regulation (EU) No 1095/2010.
Amendment 660 #
Proposal for a directive
Article 20 – paragraph 3 a (new)
Article 20 – paragraph 3 a (new)
3 a. When a financial instrument is available on a regulated market or MTF, Member States shall ensure that OTFs are only authorised to execute large in scale orders from eligible counterparties of that particular financial instrument.
Amendment 664 #
Proposal for a directive
Article 20 – paragraph 4 a (new)
Article 20 – paragraph 4 a (new)
4 a. Where an OTF executes an equivalent volume of transactions as competing MTFs or regulated markets on the same financial instruments or a significant volume of transactions executed in that financial instrument, Member States shall require that that OTF complies with all the requirements of an MTF.
Amendment 844 #
Proposal for a directive
Article 27 – paragraph 1
Article 27 – paragraph 1
1. Member States shall require that investment firms take all reasonableobtain, when executing orders, the best possible price. Nevertheless, whenever there is a specific instruction from the client the investment firm shall take all necessary steps to obtain, when executing orders, the best possible result for their clients, taking into account price, costs, speed, likelihood of execution and settlement, size, nature or any other consideration relevant to the execution of the order. Nevertheless, whenever there is a specific instruction from the client the investment firm shall execute the order following, taking into consideration the specific instruction.
Amendment 847 #
Proposal for a directive
Article 27 – paragraph 3 a (new)
Article 27 – paragraph 3 a (new)
3 a. An investment firm shall not receive any remuneration or advantage to route orders to a particular venue or any other trading arrangements and shall not put in place any arrangement which results in routing flows on a systematic basis to some venues or any other trading arrangements.
Amendment 848 #
Proposal for a directive
Article 27 – paragraph 4 – subparagraph 3
Article 27 – paragraph 4 – subparagraph 3
Member States shall require that, where the order execution policy provides for the possibility that client orders may be executed outside a regulated market, MTF or OTF , the investment firm shall, in particular, inform its clients about this possibility. Member States shall require that investment firms obtain the prior express consent of their clients before proceeding to execute their orders outside a regulated market MTF or OTF or an MTF. Investment firms mayshall obtain this consent either in the form of a general agreement or in respect of individual transactionin respect of individual transactions. When executing orders outside of a regulated market or a MTF, an investment firm shall obtain the best possible price for their clients.
Amendment 850 #
Proposal for a directive
Article 27 – paragraph 5 – subparagraph 1
Article 27 – paragraph 5 – subparagraph 1
Member States shall require investment firms to monitor the effectiveness of their order execution arrangements and execution policy in order to identify and, where appropriate, correct any deficiencies and transmit the result of this monitoring to the competent authority at least every three months. In particular, they shall assess, on a regular basis, whether the execution venues included in the order execution policy provide for the best possible result for the client or whether they need to make changes to their execution arrangements. Member States shall require investment firms to notify clients of any material changes to their order execution arrangements or execution policy. Member States shall withdraw the authorisation of investment firms which order execution policy fails to ensure the best possible result for their clients on a regular and highly significant basis when executing orders outside of a regulated market or MTF.
Amendment 852 #
Proposal for a directive
Article 27 – paragraph 5 – subparagraph 2
Article 27 – paragraph 5 – subparagraph 2
Member States shall require investment firms to summarize and make public on an annualmonthly basis, for each class of financial instruments, the top five execution venues where they executed client orders in the preceding year. These summaries shall include the criteria for the selection of venues and detail the effectiveness of their order execution arrangements and execution policy to ensure best execution to their clients.
Amendment 855 #
Proposal for a directive
Article 27 – paragraph 6
Article 27 – paragraph 6
6. Member States shall require investment firms to be able to demonstrate to their clients, at their request, that they have executed their orders in accordance with the firm's execution policy and in accordance with this Directive. Investment firms shall, on request of a client, disclose to its client the identity of the venue to which the client's orders were routed for execution in the six months prior to the request, and the time of the transactions, if any, that resulted from such orders and the price and size of other transactions executed during the same period.
Amendment 880 #
Proposal for a directive
Article 31 – paragraph 1
Article 31 – paragraph 1
1. Member States shall require that investment firms and market operators operating an MTF or OTF establish and maintain effective arrangements and procedures, relevant to the MTF or OTF, for the regular monitoring of the compliance by its users or clients with their rules. Investment firms and market operators operating an MTF or an OTF shall monitor the transactions undertaken by their users or clients under their systems in order to identify breaches of those rules, disorderly trading conditions or conduct that may involve market abuse. Member States shall ensure that market operators operating an MTF or an OTF have sufficient resources in place to ensure an effective monitoring.
Amendment 884 #
Proposal for a directive
Article 31 – paragraph 2 a (new)
Article 31 – paragraph 2 a (new)
Amendment 885 #
Proposal for a directive
Article 32 – title
Article 32 – title
Suspension and removal of instruments from trading on an MTF or an OTF
Amendment 887 #
Proposal for a directive
Article 32 – paragraph 1
Article 32 – paragraph 1
1. Without prejudice to the right of the competent authority under Article 72(1)(d) and (e) to demand suspension or removal of an instrument from trading, the operator of a regulated market, an MTF or an OTF may suspend or remove from trading a financial instrument which no longer complies with the rules of the regulated market, the MTF, or OTF unless such a step would be likely to cause significant damage to the investors' interests or the orderly functioning of the market. Member States shall require that an investment firm or a market operator operating an M regulated market, an MTF, or an OTF that suspends or removes from trading a financial instrument makes public this decision, communicates it to regulated markets, other MTFs and OTFs trading the same financial instrument and communicates relevant information to the competent authority. The competent authority shall inform the competent authorities of the other Member States. Member States shall require that other regulated markets, MTFs and OTFs trading the same financial instrument shall also suspend or remove that financial instrument from trading where the suspension or removal is due to the non-disclosure of information about the issuer or financial instrument except where this could cause significant damage to the investors' interests or the orderly functioning of the marketWhere the suspension or removal is due to the non-disclosure of information about the issuer or financial instrument, the relevant competent authority as defined in point (7) of Article 2 of Commission Regulation (EC) No 1287/2006 shall require that other regulated markets, MTFs and OTFs or any other trading arrangement trading the same financial instrument shall also suspend or remove immediately that financial instrument from trading. Member States shall require the other regulated markets, MTFs and OTFs to communicate their decision to their competent authority and all regulated markets, MTFs and OTFs trading the same financial instrument, including an explanation if the decision was not to suspend or remove the financial instrument from trading.
Amendment 921 #
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 firm intending to provide investment services or activities together with any ancillary services in their territory through a branch to professional clients acquire a prior authorisation by the competent authorities of those Member StatesESMA in accordance with the following provisions:
Amendment 932 #
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 clients in those Member States' territory shall establish a branchsubsidiary company in the Union.
Amendment 941 #
Proposal for a directive
Article 41 – paragraph 3 – subparagraph 2 – point d a (new)
Article 41 – paragraph 3 – subparagraph 2 – point d a (new)
(d a) the third country applies reciprocal access conditions for EU-based investment firms and a mutual recognition regime has been implemented in that third country.
Amendment 975 #
Proposal for a directive
Article 49 – title
Article 49 – title
Requirements relating to persons exercising significant influence over the management of thea regulated market, a MTF or an OTF
Amendment 976 #
Proposal for a directive
Article 49 – paragraph 1
Article 49 – paragraph 1
1. Member States shall require the persons who are in a position to exercise, directly or indirectly, significant influence over the management of thea regulated market, a MTF, or an OTF to be suitable.
Amendment 977 #
Proposal for a directive
Article 49 – paragraph 2 – introductory part
Article 49 – paragraph 2 – introductory part
2. Member States shall require the operator of thea regulated market, a MTF or an OTF:
Amendment 978 #
Proposal for a directive
Article 49 – paragraph 2 – point a
Article 49 – paragraph 2 – point a
(a) to provide the competent authority with, and to make public, information regarding the ownership of the regulated market and/or the market operator of a MTF or an OTF, and in particular, the identity and scale of interests of any parties in a position to exercise significant influence over the management;
Amendment 979 #
Proposal for a directive
Article 49 – paragraph 2 a (new)
Article 49 – paragraph 2 a (new)
2a. Member States shall require that market members and significant market participants shall not be in a position to exercise, directly or indirectly, significant influence over the management of the regulated market or MTF.
Amendment 980 #
Proposal for a directive
Article 49 – paragraph 2 b (new)
Article 49 – paragraph 2 b (new)
2b. Member States shall require that market members and significant market participants of a regulated market or an MTF shall not hold, directly or indirectly, more than 5% ownership of that regulated market or MTF.
Amendment 981 #
Proposal for a directive
Article 49 – paragraph 2 c (new)
Article 49 – paragraph 2 c (new)
2c. Member States shall require a regulated market, an MTF or OTF to disclose to the public any shareholder which ownership of that regulated market or MTF or OTF exceeds 5%.
Amendment 982 #
Proposal for a directive
Article 49 – paragraph 3
Article 49 – paragraph 3
3. The competent authority shall refuse to approve proposed changes to the controlling interests of the regulated market and/or the market operator where there are objective and demonstrable grounds for believing that they would pose a threat to the sound and prudent management of the regulated market or MTF or would create significant conflicts of interest.
Amendment 983 #
Proposal for a directive
Article 50 – introductory part
Article 50 – introductory part
Member States shall require thea regulated market or a MTF:
Amendment 984 #
Proposal for a directive
Article 50 – point a
Article 50 – point a
(a) to have arrangements to identify clearly and manage the potential adverse consequences, for the operation of the regulated market or MTF or for its participants, of any conflict of interest between the interest of the regulated market or MTF, its owners or its operator and the sound functioning of the regulated market or MTF, and in particular where such conflicts of interest might prove prejudicial to the accomplishment of any functions delegated to the regulated market or MTF by the competent authority;
Amendment 988 #
Proposal for a directive
Article 51 – paragraph 1
Article 51 – paragraph 1
1. Member States shall require a regulated markettrading venues 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.
Amendment 990 #
Proposal for a directive
Article 51 – paragraph 1 a (new)
Article 51 – paragraph 1 a (new)
1a. Member States shall require that regulated markets ensure that messages sent to their trading systems by high frequency and other automated trading sources are clearly identifiable as such.
Amendment 993 #
Proposal for a directive
Article 51 – paragraph 1 b (new)
Article 51 – paragraph 1 b (new)
1b. Member States shall require a regulated market to have effective systems, procedures and arrangements in place to ensure that all orders entered into the system by a member or participant have a resting time of at least 1 second.
Amendment 994 #
Proposal for a directive
Article 51 – paragraph 1 c (new)
Article 51 – paragraph 1 c (new)
1c. Member States shall require a regulated market, MTF and OTF to have in place effective systems, procedures and arrangements to ensure that the latency of execution is at least of 100 milliseconds.
Amendment 995 #
Proposal for a directive
Article 51 – paragraph 1 d (new)
Article 51 – paragraph 1 d (new)
1d. Member States shall require trading venues have in place effective systems to ensure that high frequency trading strategies do not represent more than 20% of orders in the order book at any given time.
Amendment 997 #
Proposal for a directive
Article 51 – paragraph 2
Article 51 – paragraph 2
2. Member States shall require a regulated marketrading venue or any trading arrangement to have in place effective systems, procedures and arrangements to reject orders that exceed pre-determined volume and price thresholds or are clearly erroneous and to be able to temporarily halt trading if there is a significant price movement in a financial instrument on that market or a related market during a short period and, in exceptional cases, to be able to cancel, vary or correct any transaction. compared to the closing value of that financial instrument on the venue with the highest turnover in that financial instrument and to be able to cancel, vary or correct any transaction. These systems shall result in halting trading at the same time on all trading venues trading the same financial instruments when there is a significant price movement in a financial instrument on that market or a related market during a short period. In case of significant price variation, all orders executed after the venue with the highest turnover in that financial instrument halted trading shall be cancelled. Member States shall require a trading venue to ensure that the parameters for halting trading are consistent with the conditions referred to in point (b) of paragraph 7. ESMA shall publish the parameters on its website.
Amendment 1004 #
Proposal for a directive
Article 51 – paragraph 3
Article 51 – paragraph 3
3. Member States shall require a regulated markettrading venue 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. Member States shall require a trading venue to have in place systems to (a) limit to 50 to 1 the ratio of unexecuted orders to transactions that may be entered into the system by a member or participant, to(b) be able to slow down the flow of orders if there is a risk of its system capacity being reached and to(c) limit the minimum tick size that may be executed on the market. to such an extent that one tick shall be close to the average spread on that financial instrument.
Amendment 1010 #
Proposal for a directive
Article 51 – paragraph 3 a (new)
Article 51 – paragraph 3 a (new)
3a. Member States shall ensure that a trading venue establish authorisation procedures to process requests to connect new or modified automated trading systems to the market's own systems. Such procedures shall include the testing referred to in paragraph [3b]. Such procedures shall result in the trading venue providing written acceptance or a rejection of a request with a full statement of the reasons.
Amendment 1012 #
Proposal for a directive
Article 51 – paragraph 3 b (new)
Article 51 – paragraph 3 b (new)
3b. Member States shall require a trading venue to establish rigorous and mandatory acceptance testing procedures and testing environments in which to evaluate automated trading algorithms. The details of testing procedures shall be made available to investment firms intending to use such algorithms or other parties intending to develop them. Testing procedures shall include the examination of the source code and detailed descriptions of the design of an algorithm. Testing environments shall include realistic order flows based on historical data for stressed and unstressed markets as well as simulations calibrated on representative historical data and stress test scenarios designed by experts. Testing procedures and environments shall be regularly updated to meet changing market practices and technological developments.
Amendment 1018 #
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 servicethat trading venues do not permit direct electronic access to any person.
Amendment 1027 #
Proposal for a directive
Article 51 – paragraph 5
Article 51 – paragraph 5
5. Member States shall require a regulated market to ensure that its rules on co- location services and fee structures are transparent, fair and non-discriminatory and that they do not create incentives to place, modify or cancel orders or to execute transactions in a way which actually or potentially contributes to disorderly trading conditions or market abuse, or is otherwise detrimental to the best interests of thee majority of the participants in that market. In particular, Member States shall require a regulated market to impose a minimum standard fee for all messages, that passes the cost of the infrastructure in due proportion to the clients using that infrastructure. Member States shall require that fee structure is non-discriminatory regardless whether the originating participant is deemed to add or remove liquidity from the market. Member States shall require that any fee structure that would favour high frequency strategies shall be banned and shall impose an additional fee on participants placing a high ratio of cancelled orders to executed orders in order to reflect the additional burden on system capacity. This fee shall be further increased so that orders with shorter resting times are charged more than those with longer resting times.
Amendment 1030 #
Proposal for a directive
Article 51 – paragraph 6 a (new)
Article 51 – paragraph 6 a (new)
6a. Member States shall require regulated markets to submit regular reports, at least once per year, on the volume and instruments subject to algorithmic trading and, in particular, high frequency trading, and the impact of this form of trading on price discovery, liquidity, transaction costs and other relevant aspects of the functioning of the market they operate.
Amendment 1035 #
Proposal for a directive
Article 51 – paragraph 7 – point a a (new)
Article 51 – paragraph 7 – point a a (new)
(aa) to ensure the procedures and systems for testing automated trading systems intended for connection to the trading systems of regulated markets are effective;
Amendment 1038 #
Proposal for a directive
Article 51 – paragraph 7 – point b
Article 51 – paragraph 7 – point b
(b) to set out for each type of financial instruments what constitutes a significant price movement and a common reference price for calculating this price movement consistently and conditions under which trading should be halted if there is a significant price movement in a financial instrument on that market or a related market during a short period and set out conditions under which markets should cancel, vary or correct any transaction;
Amendment 1045 #
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, considering the average spread on that financial instrument and the objective to increase the depth of the order book and limit insignificant variation of prices;
Amendment 1047 #
Proposal for a directive
Article 51 – paragraph 7 – point d
Article 51 – paragraph 7 – point d
Amendment 1052 #
Proposal for a directive
Article 51 – paragraph 7 – point e a (new)
Article 51 – paragraph 7 – point e a (new)
(ea) to ensure that the monitoring and reporting of algorithmic trading is effective;
Amendment 1062 #
Proposal for a directive
Article 53 – paragraph 1 – subparagraph 2
Article 53 – paragraph 1 – subparagraph 2
Member States shall require that an operator of a regulated market that suspends or removes from trading a financial instrument makes public this decision , communicates it to other regulated markets, MTFs and OTFs trading the same financial instrument and communicates relevant information to the competent authority. The competent authority shall inform the competent authorities of the other Member States of this . Member States shall require that other regulated markets, MTFs and OTFs trading the same financial instrument also suspend or remove that financial instrument from trading wWhere the suspension or removal is due to the non- disclosure of information about the issuer or financial instrument except for cases where this could cause significant damage to the investors' interests or the orderly functioning of the market. Member States, the competent authority for a financial instrument as defined in point (7) of Article 2 of Commission Regulation (EC) No 1287/2006 shall require theat other regulated markets, MTFs and OTFs to communicate their decision to or any otheir competent authority and all regulated markets, MTFs and OTFs trading the same financial instrument, including an explanation where it was decided not ttrading arrangement trading the same financial instrument also suspend or remove theimmediately that financial instrument from trading.
Amendment 1074 #
Proposal for a directive
Article 55 – title
Article 55 – title
Access to the regulated market and MTF
Amendment 1075 #
Proposal for a directive
Article 55 – paragraph 1
Article 55 – paragraph 1
1. Member States shall require the regulated market and MTF to establish and maintain transparent and non- discriminatory rules, based on objective criteria, governing access to or membership of the regulated market.
Amendment 1076 #
Proposal for a directive
Article 55 – paragraph 2 – point a
Article 55 – paragraph 2 – point a
(a) the constitution and administration of the regulated market or MTF;
Amendment 1077 #
Proposal for a directive
Article 55 – paragraph 2 – point e
Article 55 – paragraph 2 – point e
(e) the rules and procedures for the clearing and settlement of transactions concluded on the regulated market or MTF.
Amendment 1078 #
Proposal for a directive
Article 55 – paragraph 3 – introductory part
Article 55 – paragraph 3 – introductory part
3. Regulated markets and MTF may admit as members or participants investment firms, credit institutions authorised under Directive 2006/48/EC and other persons who:
Amendment 1079 #
Proposal for a directive
Article 55 – paragraph 4
Article 55 – paragraph 4
4. Member States shall ensure that, for the transactions concluded on a regulated market or a MTF, members and participants are not obliged to apply to each other the obligations laid down in Articles 24, 25, 27 and 28. However, the members or participants of the regulated market shall apply the obligations provided for in Articles 24, 25, 27 and 28 with respect to their clients when they, acting on behalf of their clients, execute their orders on a regulated market.
Amendment 1080 #
Proposal for a directive
Article 55 – paragraph 5
Article 55 – paragraph 5
5. Member States shall ensure that the rules on access to or membership of the regulated market or MTF provide for the direct or remote participation of investment firms and credit institutions.
Amendment 1081 #
Proposal for a directive
Article 55 – paragraph 6 – subparagraph 1
Article 55 – paragraph 6 – subparagraph 1
Member States shall, without further legal or administrative requirements, allow regulated markets or MTF from other Member States to provide appropriate arrangements on their territory so as to facilitate access to and trading on those markets by remote members or participants established in their territory.
Amendment 1082 #
Proposal for a directive
Article 55 – paragraph 6 – subparagraph 2
Article 55 – paragraph 6 – subparagraph 2
The regulated market or MTF shall communicate to the competent authority of its home Member State the Member State in which it intends to provide such arrangements. The competent authority of the home Member State shall communicate that information to the Member State in which the regulated market or MTF intends to provide such arrangements within 1 month. ESMA may request access to that information in accordance with the procedure and under the conditions set out in Article 35 of Regulation (EU) No 1095/2010.
Amendment 1083 #
Proposal for a directive
Article 55 – paragraph 6 – subparagraph 3
Article 55 – paragraph 6 – subparagraph 3
The competent authority of the home Member State of the regulated market or MTF shall, on the request of the competent authority of the host Member State and within a reasonable time, communicate the identity of the members or participants of the regulated market or MTF established in that Member State.
Amendment 1084 #
Proposal for a directive
Article 55 – paragraph 7
Article 55 – paragraph 7
7. Member States shall require the operator of the regulated market or MTF to communicate, on a regular basis, the list of the members and participants of the regulated market to the competent authority of the regulated market or MTF.
Amendment 1085 #
Proposal for a directive
Article 56 – title
Article 56 – title
Monitoring of compliance with the rules of the regulated market and MTF and with other legal obligations
Amendment 1086 #
Proposal for a directive
Article 56 – paragraph 1
Article 56 – paragraph 1
1. Member States shall require that regulated markets or MTF establish and maintain effective arrangements and procedures for the regular monitoring of the compliance by their members or participants with their rules. Regulated markets or MTF shall monitor the transactions and orders undertaken by their members or participants under their systems in order to identify breaches of those rules, disorderly trading conditions or conduct that may involve market abuse.
Amendment 1087 #
Proposal for a directive
Article 56 – paragraph 2
Article 56 – paragraph 2
2. Member States shall require the operators of the regulated markets or MTF to report significant breaches of their rules or disorderly trading conditions or conduct that may involve market abuse to the competent authority of the regulated market or MTF. Member States shall also require the operator of the regulated market or MTF to supply the relevant information without delay to the authority competent for the investigation and prosecution of market abuse on the regulated market or MTF and to provide full assistance to the latter in investigating and prosecuting market abuse occurring on or through the systems of the regulated market or MTF.
Amendment 1101 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Member States shall ensure thatin close coordination with ESMA shall ensure that competent authorities apply to regulated markets, operators of MTFs and OTFs which admit to trading or trade commodity derivatives apply limits on the numbers well as OTC dealers ex ante and ex post limits on the number and market and notional values of contracts which any given market membperson or participantersons as well as different classes of investors can enter into over a specified period of time, oras well as additional alternative arrangements with equivalent effectin complement to such limits such as position management with automatic review thresholds , to be imposed in order to:
Amendment 1106 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – point a
Article 59 – paragraph 1 – subparagraph 1 – point a
(a) support liquidensure sufficient market support liquidity required by bona-fide hedging transactions and reduce volatility;
Amendment 1107 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – point c
Article 59 – paragraph 1 – subparagraph 1 – point c
(c) support ordensure that the price discoverly pricingfunction and settlement conditions of the underlying market are not disrupted.
Amendment 1110 #
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) prevent, reduce or eliminate excessive speculation and price volatility.
Amendment 1119 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 2
Article 59 – paragraph 1 – subparagraph 2
The limits orand 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 the market participants and of the use theysuch person make of the contracts admitted to trading. They shall specify clear quantitative and qualitative thresholds such as the maximum number of contracts personand market and notional values of contracts persons and different classes of investors can enter, taking account of the characteristics of the underlying commodity markets and their interaction with other markets, including patterns of production, consumption, intermediation and transportation to market, estimated and official levels of inventories including prepaid contracts, spared capacities and long-term supply and demand trends. Limits shall apply to cash and physically settled contracts as well as contracts any person holds in the spot-month and any subsequent delivery or settlement period. In setting the limits ESMA and Member States shall ensure that the legitimate interests of participants conducting bona- fide hedging activities are respected.
Amendment 1128 #
Proposal for a directive
Article 59 – paragraph 2
Article 59 – paragraph 2
2. Regulated markets, MTF and OTFs, OTFs and OTC dealers shall informnotify their competent authority of the details of the limits orand 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. The competent authority or ESMA may require the regulated markets, MTFs, OTFs or OTC dealers to review the details of the limits and arrangements when they consider that the regulated markets, MTFs, OTFs or OTC dealers do not satisfy the criteria defined in paragraph 1.
Amendment 1136 #
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 the limits or alternativeESMA shall submit draft regulatory technical standards to the Commission to determine the ex-ante limits and 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 alternativedditional arrangements and the method of calculating positions established in accordance with paragraph 1, as well as the conditions for exemptions. The limits or alternative as well as the relevant ratios of overall positions to aggregate positions resulting from bona fide hedge transactions required for establishing whether a situation of excessive speculation arises or presents a significant risk of arising. The limits and 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 alternativeand arrangements 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 1140 #
Proposal for a directive
Article 59 – paragraph 3 a (new)
Article 59 – paragraph 3 a (new)
3a. ESMA shall submit drafts for those regulatory technical standards to the Commission by [31 December 2012]. Power is delegated to the Commission to adopt regulatory technical standards referred to in paragraph 3 in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010. The relevant ratio of overall positions to aggregate positions resulting from bona fide hedge transactions for establishing whether a situation of excessive speculation arises referred to in paragraph 3 shall be of 3. The Commission shall be empowered to adopt regulatory technical standards modifying such a threshold taking into account developments in financial markets.
Amendment 1142 #
Proposal for a directive
Article 59 – paragraph 4 – subparagraph 1
Article 59 – paragraph 4 – subparagraph 1
Amendment 1144 #
Proposal for a directive
Article 59 – paragraph 4 – subparagraph 2 a (new)
Article 59 – paragraph 4 – subparagraph 2 a (new)
The restrictions shall be valid for an initial period duly specified by the competent authority from the date of its publication on the website of the relevant competent authority. Such a restriction may be renewed for further periods not exceeding six months at a time if the grounds for the restriction continue to be applicable. If the restriction is not renewed after that six-month period, it shall automatically expire. A competent authority adopting more restrictive measures referred to in paragraph 4 shall immediately inform the competent authorities of the home Member States of venues which trade the same relevant asset or class of assets. If a competent authority disagrees with the action taken by another competent authority on a financial instrument traded on different venues regulated by different competent authorities, ESMA may assist those authorities in reaching a diligent agreement in accordance with Article 19 of Regulation (EU) N° 1095/2010.
Amendment 1146 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – introductory part
Article 60 – paragraph 1 – subparagraph 1 – introductory part
Member States and ESMA shall ensure that regulated markets, MTFs, OTFs and OTFC dealers which admit to trading or trade commodity derivatives or emission allowances or derivatives thereof:
Amendment 1149 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – point a
Article 60 – paragraph 1 – subparagraph 1 – point a
(a) make public a weekly report with the aggregate positions held by the different categories of traderpersons for the different financial instruments traded on their platforms in accordance with paragraph 3;
Amendment 1151 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – point a a (new)
Article 60 – paragraph 1 – subparagraph 1 – point a a (new)
(a a) make public any significant gross or open position in the underlying asset or class of assets;
Amendment 1153 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – point b
Article 60 – paragraph 1 – subparagraph 1 – point b
(b) provide the competent authority with a complete breakdown of theall positions of any or all market members or participants, including any positions held on behalf of their clients, upon requestposition holders at the close of preceding trading day on a daily basis.
Amendment 1157 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 2
Article 60 – paragraph 1 – subparagraph 2
The obligation laid down in point (a) and (aa) shall only apply when both the number of traderpersons and their open positions in a given financial instrument exceed minimum thresholds.
Amendment 1163 #
Proposal for a directive
Article 60 – paragraph 2
Article 60 – paragraph 2
2. In order to enable the publication mentioned in point (a) of paragraph 1, Member States shall require members and participants of regulated markets, MTFs and OTFs to report to the respective trading venueall persons holding a position in a relevant financial instrument to report to the respective trading venue or in the case of OTC contracts directly to competent authorities the details of their positions in real-time, including any positions held on behalf of their clients as well as to whether the transaction is a bona fide hedging transaction.
Amendment 1168 #
Proposal for a directive
Article 60 – paragraph 3 – subparagraph 1 – introductory part
Article 60 – paragraph 3 – subparagraph 1 – introductory part
Amendment 1170 #
Proposal for a directive
Article 60 – paragraph 3 – subparagraph 1 – point d
Article 60 – paragraph 3 – subparagraph 1 – point d
(d) commercial undertakings performing bona fide hedging transactions;
Amendment 1173 #
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 should specify the number ofand market and notional values of gross and open long and short positions by category of traposition holder, changes thereto since the previous report, percent of total short and long open interest represented by each category, and the number of traposition holders in each category.
Amendment 1175 #
Proposal for a directive
Article 60 – paragraph 3 – subparagraph 2 a (new)
Article 60 – paragraph 3 – subparagraph 2 a (new)
For the purpose of the reports mentioned in points (a), (aa) and (b) the calculation of short and long gross and open positions as well as notional values held by the relevant person directly and indirectly, including through or by way of any index, basket of securities or any interest in any exchange traded fund or similar entity shall take into account whether different investment strategies are pursued in relation to a particular asset or class of assets through more than one separate fund managed by the same fund manager, whether the same investment strategy is pursued in relation to a particular asset and class of assets through more than one fund and whether more than one portfolio within the same entity is managed on a discretionary basis pursuing the same investment strategy in relation to a particular asset or class of assets.
Amendment 1177 #
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) of paragraph 1, and the content of the information to be provided in accordance with paragraph 2 and paragraph 1 of Article 59.
Amendment 1179 #
Proposal for a directive
Article 60 – paragraph 5 – subparagraph 1
Article 60 – paragraph 5 – subparagraph 1
Amendment 1182 #
Proposal for a directive
Article 60 – paragraph 5 – subparagraph 1 a (new)
Article 60 – paragraph 5 – subparagraph 1 a (new)
ESMA shall submit drafts for those regulatory technical standards to the Commission by [31 December 2012]. Power is delegated to the Commission to adopt regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) N° 1095/2010.
Amendment 1186 #
Proposal for a directive
Article 60 – paragraph 5 a (new)
Article 60 – paragraph 5 a (new)
5 a. For the purpose of paragraph 1 of Article 59 ESMA shall develop, in close coordination with the ESRB and other relevant sectoral supervisors from the Union and third countries, draft regulatory technical standards specifying a set of relevant indicators and thresholds required for the monitoring of the characteristics of underlying commodity markets as well as the details of the granular and aggregate information to be provided by market participants, regulated markets, MTF and OTFs and trade repositories authorized under Regulation (EU) No …/… [EMIR] to relevant competent authorities, ESMA and the ESRB. These indicators shall in particular be used by competent authorities and the ESMA division on commodities established in Article 35 of Regulation (EU) No …/… [MIFIR] to proceed to a permanent and granular in-depth review of patterns of production, consumption, intermediation, transportation, estimated and official levels of inventories including prepaid contracts, spared capacities, long- term supply and demand trends of underlying commodity markets as well as market volatility and correlation patterns of underlying commodity markets with other assets and classes of assets. ESMA shall submit drafts for those regulatory technical standards to the Commission by [31 December 2012]. Power is delegated to the Commission to adopt regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 1194 #
Proposal for a directive
Article 67 – paragraph 1 – subparagraph 1 – point g a (new)
Article 67 – paragraph 1 – subparagraph 1 – point g a (new)
(g a) where applicable, the automated trading system that generated the transaction;
Amendment 1195 #
Proposal for a directive
Article 67 – paragraph 1 – subparagraph 1 – point g b (new)
Article 67 – paragraph 1 – subparagraph 1 – point g b (new)
(g b) if the transaction was executed "OTC", the nature of the transaction;
Amendment 1196 #
Proposal for a directive
Article 67 – paragraph 1 – subparagraph 1 – point h a (new)
Article 67 – paragraph 1 – subparagraph 1 – point h a (new)
(h a) if the transaction was a short sale as defined in point (b) of Article 2(1) of Regulation (EU) No 236/2012.
Amendment 1198 #
Proposal for a directive
Article 67 – paragraph 2 – subparagraph 1 – point g a (new)
Article 67 – paragraph 2 – subparagraph 1 – point g a (new)
(g a) where applicable, the automated trading system that generated the transaction;
Amendment 1199 #
Proposal for a directive
Article 67 – paragraph 2 – subparagraph 1 – point g b (new)
Article 67 – paragraph 2 – subparagraph 1 – point g b (new)
(g b) if the transaction was executed "OTC", the nature of the transaction;
Amendment 1210 #
Proposal for a directive
Article 67 a (new)
Article 67 a (new)
Amendment 1213 #
Proposal for a directive
Article 69 – paragraph 3 a (new)
Article 69 – paragraph 3 a (new)
3a. For the purposes of effectively carrying out its duties in relation to commodities markets and coordinating supervisory activities between the designated national competent authorities with responsibility for those markets, ESMA shall establish a specific commodities division.
Amendment 1214 #
Proposal for a directive
Article 70 – paragraph 2 a (new)
Article 70 – paragraph 2 a (new)
In case of emission allowances, Member State shall require the competent authorities to cooperate and exchange information with competent bodies designated pursuant to Directive 2003/54/EC for the purpose of this Directive.
Amendment 1232 #
Proposal for a directive
Article 74 – paragraph 1
Article 74 – paragraph 1
Member States shall provide that the competent authority publishes any sanction or measure that has been imposed for breaches of the provisions of Regulation (EU) No …/… (MiFIR) or of the national provisions adopted in the implementation of this Directive without undue delay including information on the type and nature of the breach and the identity of persons responsible for it, unless such disclosure would seriously jeopardise the financial markets. Where the publication would cause a disproportionate damage to the partienatural persons involved, competent authorities shall publish the sanctions against these natural persons on an anonymous basis.
Amendment 1238 #
Proposal for a directive
Article 75 – paragraph 1 – point z a (new)
Article 75 – paragraph 1 – point z a (new)
(za) a natural person belonging to the management body of a market operator or an investment firm that has knowledge of any breaches referred to in this paragraph and decides not to report those breaches to the competent authority.
Amendment 1242 #
Proposal for a directive
Article 75 – paragraph 2 – subparagraph 1 – point d
Article 75 – paragraph 2 – subparagraph 1 – point d
(d) a temporary or permanent ban against any member of the investment firm's management body or any other natural person, who is held responsible, to exercise functions in investment firms;
Amendment 1243 #
Proposal for a directive
Article 75 – paragraph 2 – subparagraph 1 – point d a (new)
Article 75 – paragraph 2 – subparagraph 1 – point d a (new)
(da) in case of a firm engaged in algorithmic trading, a temporary or permanent ban to access regulated markets, MTF and OTF.
Amendment 1244 #
Proposal for a directive
Article 75 – paragraph 2 – subparagraph 1 – point e
Article 75 – paragraph 2 – subparagraph 1 – point e
(e) in case of a legal person, administrative pecuniary sanctions of up to 120 % of the total annual turnover of the legal person in the preceding business year; where the legal person is a subsidiary of a parent undertaking, the relevant total annual turnover shall be the total annual turnover resulting from the consolidated account of the ultimate parent undertaking in the preceding business year;
Amendment 1245 #
Proposal for a directive
Article 75 – paragraph 2 – subparagraph 1 – point f
Article 75 – paragraph 2 – subparagraph 1 – point f
(f) in case of a natural person, administrative pecuniary sanctions of up to the greater of either 100% of the total annual income of the natural person in the preceding business year or 5 000 000 EUR, or in the Member States where the Euro is not the official currency, the corresponding value in the national currency on the date of entry into force of this Directive;
Amendment 1247 #
Proposal for a directive
Article 75 – paragraph 2 – subparagraph 1 – point g
Article 75 – paragraph 2 – subparagraph 1 – point g
(g) without prejudice to points (e) and (f), administrative pecuniary sanctions of up to twiceen times the amount of the benefit derived from the violation where that benefit can be determined.
Amendment 1248 #
Proposal for a directive
Article 75 – paragraph 2 – subparagraph 2
Article 75 – paragraph 2 – subparagraph 2
Where the benefit derived from the violation can be determined, Member States shall ensure that the maximum level is no lower than twiceen times the amount of that benefit and not lower than the losses occurred by the other market participants related to that breach.
Amendment 1253 #
Proposal for a directive
Article 77 – paragraph 1 – subparagraph 2 – point b
Article 77 – paragraph 1 – subparagraph 2 – point b
(b) appropriate protection and possibility of anonymity for employees of financial institutions who denounce breaches committed within the financial institution;
Amendment 1256 #
Proposal for a directive
Article 77 – paragraph 2 a (new)
Article 77 – paragraph 2 a (new)
2a. An employee shall not be prevented from denouncing breaches committed within the financial institution by any confidentiality rules. Any information that contributes to prove breaches committed within the financial institution shall no more be considered as confidential and the disclosure in good faith of such information shall not involve persons disclosing such information in liability of any kind.
Amendment 1268 #
Proposal for a directive
Article 86 – paragraph 1 – subparagraph 1 a (new)
Article 86 – paragraph 1 – subparagraph 1 a (new)
The competent authorities may also refer to ESMA situations where a competent authority disagrees about the procedure or content of an action or inaction of a competent authority of another Member State related to any provisions of this Directive or of Regulation (EU) No .../... [MiFIR].
Amendment 1285 #
Proposal for a directive
Article 96 – paragraph 1 – point e
Article 96 – paragraph 1 – point e
(e) the impact of the application or limits or alternativeand additional arrangements on liquidity, market abuse and orderly pricing and settlement conditions in commodity derivatives markets required by bona fide hedging transactions, market abuse and ensuring an orderly price discovery function and settlement conditions in commodity derivatives markets and preventing, reducing or eliminating excessive speculation and price volatility;
Amendment 1288 #
Proposal for a directive
Article 97 – paragraph 1 – subparagraph 1
Article 97 – paragraph 1 – subparagraph 1
Member States shall adopt and publish, by [….]* at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions and a correlation table between those provisions and this Directive. ____________________ *OJ please insert date: one year after the entry into force of this Directive
Amendment 1289 #
Proposal for a directive
Article 97 – paragraph 1 – subparagraph 3
Article 97 – paragraph 1 – subparagraph 3
Members States shall apply these measures from […]* except for the provisions transposing Article 67(2) which shall apply from [21 years after the application date for the rest of the Directive]. __________________ *OJ please insert date: 18 months after the entry into force of this Directive
Amendment 1291 #
Proposal for a directive
Article 99 – paragraph 2
Article 99 – paragraph 2
Amendment 1292 #
Proposal for a directive
Article 101 a (new)
Article 101 a (new)
Article 101a Amendment to Directive 98/26/EC Directive 98/26/EC is amended as follows: In Article 1, the following subparagraph is added: "This Directive shall not apply to Emission allowances consisting of any units recognised for compliance with the requirements of Directive 2003/87/EC (Emissions Trading Scheme)."
Amendment 1299 #
Proposal for a directive
Annex 1 – Section A – point 10 a (new)
Annex 1 – Section A – point 10 a (new)
(10a) Engaging in algorithmic trading.
Amendment 1304 #
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 1312 #
Proposal for a directive
Annex 1 – Section C – point 10
Annex 1 – 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 1315 #
Proposal for a directive
Annex 1 – section C a (new)
Annex 1 – section C a (new)
Section Ca Other instruments (1) Emission allowances consisting of any units recognised for compliance with the requirements of Directive 2003/87/EC (Emissions Trading Scheme) shall be treated as financial instruments for the exclusive purpose of this Directive, Regulation (EU) No .../... [MiFIR], Regulation (EU) No .../... [Market Abuse Regulation] and Directive (EU) No .../... [Market Abuse Directive]
Amendment 1318 #
Proposal for a directive
Annex 2 – part I – paragraph 2
Annex 2 – part I – paragraph 2
The entities mentioned above are considered to be professionals. They must however be allowed to request non- professional treatment and investment firms mayshall agree to provide a higher level of protection when requested. Where the client of an investment firm is an undertaking referred to above, the investment firm must inform it prior to any provision of services that, on the basis of the information available to the firm, the client is deemed to be a professional client, and will be treated as such unless the firm and the client agree otherwiseclient ask for being treated as non-professional. The firm must also inform the customer that he can request a variation of the terms of the agreement in order to secure a higher degree of protection.