Activities of Jürgen KLUTE related to 2011/0298(COD)
Shadow reports (1)
REPORT on the proposal for a directive of the European Parliament and of the Council on markets in financial instruments repealing Directive 2004/39/EC of the European Parliament and of the Council (recast) PDF (1 MB) DOC (1 MB)
Amendments (42)
Amendment 419 #
Proposal for a directive
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. Requirements which institutions and persons as referred to in paragraph 1 of this Article cannot be excepted from, include, but are not limited to: – reporting obligations; – prohibitions; – position limits; – consumer protection; and – licensing requirements.
Amendment 421 #
Proposal for a directive
Article 2 – paragraph 3 – subparagraph 1
Article 2 – paragraph 3 – subparagraph 1
Amendment 424 #
Proposal for a directive
Article 2 – paragraph 3 – subparagraph 1
Article 2 – paragraph 3 – subparagraph 1
The Commission shall adopt delegated acts in accordance with Article 94 concerning measures in respect of exemptions (c), (d) and (i), to clarifying when an activity is to be considered as ancillary to the main business on a group level as well as for determining when an activity is provided in an incidental manner.
Amendment 443 #
Proposal for a directive
Article 3
Article 3
Amendment 457 #
Proposal for a directive
Article 4 – paragraph 2 – point 3 a (new)
Article 4 – paragraph 2 – point 3 a (new)
Amendment 492 #
Proposal for a directive
Article 4 – paragraph 2 – point 33 a (new)
Article 4 – paragraph 2 – point 33 a (new)
33a) 'Excessive speculation' means positions held by any person, including any group or class of persons, which do not objectively reduce risks directly related to that person's commercial activities related to the commodity and in which the counterparty is not reducing risks directly related to its commercial activities.
Amendment 501 #
Proposal for a directive
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Each Member State shall require that the performance of investment services or activities as a regular occupation or business on a professional basis be subject to prior authorisation in accordance with the provisions of this Chapter and Article 31 of the Regulation (EU) No …/… [MiFIR]. Such authorisation shall be granted by the home Member State competent authority designated in accordance with Article 69.
Amendment 505 #
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. The home Member State shall ensure that the authorisation specifies the investment services or activities which the investment firm is authorised to provide. The authorisation may cover one or more of the ancillary services set out in Section B of Annex I. Authorisation shall in no case be granted solely for the provision of ancillary services. ESMA shall review the authorisation on suspicion of infringements against the provisions of this Directive and in case of a complaint by interested third parties within an appropriate period of time and may cancel the authorisation to ensure the stability of the financial market.
Amendment 509 #
Proposal for a directive
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
The competent authority or ESMA may withdraw the authorisation issued to an investment firm where such an investment firm:
Amendment 528 #
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Member States shall require investment firms to take into account diversity as one of the criteria for selection of members of the management body as well as to introduce a women's quota of 40 % in their management bodies by 1 January 2015 at the latest. In particular, taking into account the size of their management body, investment firms shall put in place a policy promoting gender, age, educational, professional and geographical diversity on the management body and disclose this strategy at least once a year.
Amendment 548 #
Proposal for a directive
Article 12 – paragraph 5
Article 12 – paragraph 5
5. If the competent authorities do not oppose the proposed acquisition within the assessment period in writing, it shall be deemed to be approvedecide in favour of an authorisation, they shall inform the interested acquisitor by notification after the expiry of the assessment period at the latest.
Amendment 556 #
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 investment advice is given to clients or the services of reception and transmission of orders and execution of orders on behalf of clients are provided.
Amendment 577 #
Proposal for a directive
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1a. An investment firm that engages in algorithmic trading must be subject to a separate authorisation procedure. Thereby it has to show in a clear and understandable manner, which benefits for the economy as a whole result from its activities, and that no negative effects such as increased volatility, putting the stability of the financial market at risk, or distortion of prices derives from its activities. If this is not proven in a clear and understandable manner, the authorisation of such an investment firm must be prohibited. The European Commission shall prepare a proposal for a list of possible macroeconomic positive and negative effects through algorithmic trading.
Amendment 579 #
Proposal for a directive
Article 17 – paragraph 1 b (new)
Article 17 – paragraph 1 b (new)
1b. High-frequency trading is prohibited.
Amendment 673 #
Proposal for a directive
Article 23 – paragraph 2
Article 23 – paragraph 2
2. Where organisational or administrative arrangements made by the investment firm in accordance with Article 16(3) to manageavoid conflicts of interest are not sufficient to ensure, with reasonable confidence, that risks of damage to client interests will be prevented, the investment firm shall clearly disclose the general nature and/or sources of conflicts of interest to the client before undertaking business on its behalf.
Amendment 684 #
Proposal for a directive
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
1 a. In particular, Member States should ensure that investment firms assess a general consistency of the financial instruments distributed (especially when directly designed), with due regard to their characteristics against the characteristics and needs of the potential target group of clients to whom these instruments are being addressed. This assessment shall take into account the full customer protection offered by an issuer which is member of an institutional protection scheme as defined in Article 80(8) of Directive 2006/48/EC. Moreover, Member States shall require that investment firms take reasonable steps to ensure that the sale and distribution policy is consistent with the suitability and appropriateness assessment rules.
Amendment 736 #
Proposal for a directive
Article 24 – paragraph 5 – point i
Article 24 – paragraph 5 – point i
(i) shall assess a sufficiently large number of financial instruments available on the marketcarry out a comprehensive and fair analysis of the relevant market and provide advice which is unbiased and unrestricted. The financial instruments should be diversified with regard to their type and issuers or product providers and should not be limited to financial instruments issued or provided by entities having close links with the investment firm,
Amendment 748 #
Proposal for a directive
Article 24 – paragraph 5 – point ii
Article 24 – paragraph 5 – point ii
(ii) shall not accept or receive fees, commissions or any monetary benefits paid or provided by any third party or a person acting on behalf of a third party in relation to the provision of the service to clients. The investment firms are neither authorised to offer services remunerated by fees, commissions or any benefits paid or provided by a financial institution or a person action on behalf of a financial institution that issues investment products they advise.
Amendment 779 #
Proposal for a directive
Article 24 – paragraph 7 – subparagraph 1
Article 24 – paragraph 7 – subparagraph 1
When an investment service is offered together with another service or product as part of a package or as a condition for the same agreement or package, the investment firm shall inform the client whether it is possible to buy the different components separately and shall provide for a separate evidence of the costs and charges of each component. A product combining investment and savings products may not be offered to retail investors.
Amendment 836 #
Proposal for a directive
Article 25 – paragraph 6 a (new)
Article 25 – paragraph 6 a (new)
6 a. When investment advise is given to a client and related to this advice any kind of inducement is provided to the advisor, the advisor shall inform each client regularly, but at least once a year, of the kind and volume of inducement he received for the investment advice and the respective orders related to the respective client.
Amendment 874 #
Proposal for a directive
Article 30 – paragraph 2 – subparagraph 1
Article 30 – paragraph 2 – subparagraph 1
Member States shall recognise as eligible counterparties for the purposes of this Article investment firms, credit institutions, insurance companies, UCITS and their management companies, pension funds and their management companies, other financial institutions authorised or regulated under Union legislation or the national law of a Member State, undertakings exempted from the application of this Directive under Article 2(1)(k) , national governments and their corresponding offices including public bodies that deal with public debt at national level , central banks and supranational organisations. However, municipal authorities and regional administrative bodies are exempt.
Amendment 882 #
Proposal for a directive
Article 31 – paragraph 1 a (new)
Article 31 – paragraph 1 a (new)
1 a. Member States shall ensure that investment firms and market operators, operating a trading venue, record their transaction to ensure identification of the client ("trade marking").
Amendment 902 #
Proposal for a directive
Article 35 – paragraph 3 – point a a (new)
Article 35 – paragraph 3 – point a a (new)
(aa) the majority of financial products traded on the market are products which are directly funding small and medium sized enterprises, not including financial institutions.
Amendment 991 #
Proposal for a directive
Article 51 – paragraph 1 a (new)
Article 51 – paragraph 1 a (new)
1a. Member States require any trading venue to have effective systems, procedures and arrangements in place to ensure that all orders entered into the system by a member or participant are valid for a minimum of 1 second.
Amendment 1023 #
Proposal for a directive
Article 51 – paragraph 4 a (new)
Article 51 – paragraph 4 a (new)
4 a. Member States shall require that every trading venue maintains orders in the order book for at least 24 hours.
Amendment 1058 #
Proposal for a directive
Article 51 – paragraph 7 a (new)
Article 51 – paragraph 7 a (new)
7a. Member States require that any bid placed on the trading venue regarding the purchase or sale of a product is binding and has to be executed.
Amendment 1100 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Article 59 – paragraph 1 – subparagraph 1 – introductory part
Member States shall ensurequire that regulated markets, operators of MTFs and OTFs which admit to trading or trade commodity derivatives apply limits on the number of contracts which any given market members or participants, or a class of market members or participants, can enter into over a specified period of time, or alternative arrangements with equivalent effect such as position management with automatic review thresholds , to be imposed in order to:
Amendment 1105 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – point a
Article 59 – paragraph 1 – subparagraph 1 – point a
(a) support liquidity required for hedging risk directly and objectively related to commercial activities related to the underlying commodity;
Amendment 1109 #
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) protect the price discovery function for the underlying commodity;
Amendment 1112 #
Proposal for a directive
Article 59 – paragraph 1 – subparagraph 1 – point c b (new)
Article 59 – paragraph 1 – subparagraph 1 – point c b (new)
(c b) prevent, mitigate or eliminate excessive speculation and volatility of the underlying commodity.
Amendment 1118 #
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 market participants and of the use they make of the contracts admitted to trading. In particular, they shall differentiate between positions which objectively reduce risks directly related to commercial activities related to the commodity, and other positions. They shall specify clear quantitative thresholds such as the maximum number of contracts persons can enter, taking account of the characteristics of the underlying commodity market, including patterns of production, consumption and transportation to market. Limits shall also be applied to the net positions of market members or participants across regulated markets, MTFs, OTFs and any positions in equivalent contracts traded outside of these venues. The limits shall be defined for each month a respective financial product is held. The limits shall be reported to ESMA and shall be controlled by it. ESMA shall set for members or market participants operating on different trading venues within the EU an overall limit which applies throughout the EU.
Amendment 1143 #
Proposal for a directive
Article 59 – paragraph 4 – subparagraph 1
Article 59 – paragraph 4 – subparagraph 1
Competent authorities shall not impose limits or alternative arrangemenare generally permitted to impose limits which are more restrictive than those adopted pursuant to paragraph 3 except in exceptional cases wherto achieve they are objectively justified and proportionate taking into account the liquidity of the specific market and the orderly functioning of the marketims referred to under paragraph 1. ESMA has to be informed accordingly. The restrictions shall be valid for an initial period not exceeding six months 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.
Amendment 1145 #
Proposal for a directive
Article 59 a (new)
Article 59 a (new)
Article 59 a The classes of market participants as referred to in Article 59 differentiate between undertakings hedging commercial risks and others. The class of undertakings not hedging commercial risks may not keep positions exceeding 20 % of the respective open interest. EMSA shall develop draft technical standards limiting positions of single market participants to prevent any participant to corner the respective market.
Amendment 1148 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – point a
Article 60 – paragraph 1 – subparagraph 1 – point a
(a) make public a weekdaily report with the aggregate positions held by the different categories of traders for the different financial instruments traded on their platforms in accordance with paragraph 3;
Amendment 1155 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 1 – point b
Article 60 – paragraph 1 – subparagraph 1 – point b
(b) provide ESMA and the competent authority with a complete breakdown of the positions of any or all market members or participants, including any positions held on behalf of their clients, upoin requestal-time.
Amendment 1156 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 2
Article 60 – paragraph 1 – subparagraph 2
Amendment 1159 #
Proposal for a directive
Article 60 – paragraph 1 – subparagraph 2 a (new)
Article 60 – paragraph 1 – subparagraph 2 a (new)
ESMA shall ensure that the information received is aggregated for each market participant and for each category of trader in accordance with paragraph 3 and any additional class of market participant in accordance with Article 59 of this Directive and Article 35 of Regulation (EU) No .../... [MiFIR]. This information shall be published by ESMA in a daily report for the purpose of the implementation of limits on the position of individual market participants and any class or category of market participants.
Amendment 1166 #
Proposal for a directive
Article 60 – paragraph 2 – subparagraph 1 a (new)
Article 60 – paragraph 2 – subparagraph 1 a (new)
Member States shall ensure that investment firms which trade in commodity derivatives or emission allowances or derivatives thereof outside of a regulated market, MTF or OTF provide ESMA and the competent authority with a complete breakdown of their positions in real-time.
Amendment 1167 #
Proposal for a directive
Article 60 – paragraph 2 – subparagraph 1 b (new)
Article 60 – paragraph 2 – subparagraph 1 b (new)
Amendment 1172 #
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 of long and short positions by category of trader, changes thereto since the previous report, percent of total open interest represented by each category, and the number of traders in each category. They shall also distinguish between positions which objectively reduce risks directly related to commercial activities and other positions.
Amendment 1183 #
Proposal for a directive
Article 60 – paragraph 5 – subparagraph 2
Article 60 – paragraph 5 – subparagraph 2
Amendment 1185 #
Proposal for a directive
Article 60 – paragraph 5 a (new)
Article 60 – paragraph 5 a (new)
5a. ESMA shall develop draft implementing technical standards to specify the measures to require all reports mentioned in point (a) of paragraph 1 to be sent to ESMA at a specified daily time, for their centralised publication by the latter. These technical standards shall allow public reporting in an easily accessible way that allows the identification of trends and risks in commodity derivative trading on trading venues, OTC and in underlying commodity markets. ESMA shall submit those draft implementing technical standards to the Commission by […]*. Power is conferred on the Commission to adopt the implementing technical standards based on the draft technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010. ______________ * OJ please insert date: 12 months after entry into force of this Directive.