BETA

15 Amendments of Burkhard BALZ related to 2010/0251(COD)

Amendment 152 #
Proposal for a regulation
Recital 6
(6) Enhanced transparency relating to significant net short positions in specific financial instruments is likely to be of benefit to both the regulator and to market participants. For shares admitted to trading on a trading venue in the Union, a two-tier model should be introduced that provides for greater transparency of significant net short positions in shares at the appropriate level. At a lower threshold nNotification of a position above a certain threshold should be made privately to the regulators concerned to enable them to monitor and, where necessary, investigate short selling that may create systemic risks or be abusive; at a higher threshold, positions should be also publicly disclosed to the market in aggregate, anonymous form in order to provide useful information to other market participants about significant individual short selling positions in shares.
2011/01/20
Committee: ECON
Amendment 168 #
Proposal for a regulation
Recital 12
(12) In addition to the transparency regime for the disclosure of net short positions in shares, ESA (ESMA) should investigate the benefits and costs of establishing a requirement for the marking of sell orders that are executed on trading venues as short orders should be introduced to provide supplementary information about the volume of short sales of shares executed on trading venues. Information about short orders should be collated by the trading venue and published in summary form at least daily in order to also help competent authorities and market participants to monitor levels of short sellingand whether the objective is better achieved by the transparency regime for the disclosure of net short positions in shares.
2011/01/20
Committee: ECON
Amendment 173 #
Proposal for a regulation
Recital 13
(13) Buying credit default swaps without having a long position in underlying sovereign debt or another position whose value is likely to be negatively impacted by a decline in the creditworthiness of the relevant sovereign can be, economically speaking, equivalent to taking a short position on the underlying debt instrument. The calculation of a net short position in relation to sovereign debt should therefore include credit default swaps relating to an obligation of a sovereign debt issuer. The credit default swap position should be taken into account both for the purposes of determining whether a natural or legal person has a significant net short position relating to sovereign debt that needs to be notified to a competent authority or a significant uncovered position in a credit default swap relating to an issuer of sovereign debt that needs to be notified to the authority.
2011/01/20
Committee: ECON
Amendment 179 #
Proposal for a regulation
Recital 16
(16) Uncovered short selling of shares and sovereign debt is sometimes viewed as increasing the potential rmay be one of multiple other operational causes isk of settlement failure and volatility. To reduce such risks it is appropriate to place proportionate restrictions on uncovered short selling. The detailed restrictions should take into account the different arrangements currently used for covered short selling. It is also appropriate to include requirements on trading venues relating to buy-in procedures and fines for failed settlement of transactions in those instruments. The buy-in procedures and late settlement requirements should set basic standardMeasures to reduce such risks and also establish appropriate buy-in procedures and fines for failed settlement of transactions should be developed in the upcoming Commission proposals relating to settlement discipline.
2011/01/20
Committee: ECON
Amendment 253 #
Proposal for a regulation
Article 4 – paragraph 1
1. For the purposes of this Regulation, a natural or legal person shall be considered to have an uncovered position in a credit default swap relating to an obligation of a Member State or the Union, to the extent that the credit default swap is not serving to hedge against the risk of defaulta decline in the creditworthiness of the issuer where the natural or legal person has a long position in the sovereign debt of that issuer or any long position in the debt of an issuer for which the price of its debt has a high correlation with the price of the obligation of a Member State or the Unionnother position whose value is likely to be negatively impacted by such a decline. The party under a credit default swap that is obliged to make the payment or pay the compensation in the event of a default or a credit event relating to the reference entity does not by reason of that obligation have an uncovered position for the purposes of this paragraph.
2011/01/20
Committee: ECON
Amendment 274 #
Proposal for a regulation
Article 6 – paragraph 1
A trading venue that has shares admitted to trading shall establish procedures that ensure that natural or legal persons executing orders on the trading venue mark sell orders as short orders if the seller is entering into a short sale of the share. The trading venue shall publish at least daily a summary of the volume of orders marked as short ordersThe Commission shall request ESA (ESMA) to amend Annex 1 of Regulation (EC) No 1287/2006 to require that intermediaries that undertake short sales indicate these as such in the transaction report of such sales to the relevant competent authority.
2011/01/20
Committee: ECON
Amendment 281 #
Proposal for a regulation
Article 7 – paragraph 1
1. A natural or legal person who has a net short position in relation to the issued share capital of a company that has shares admitted to trading on a trading venue shall disclose to the public details of the position whenever the position reaches or falls below a relevant publication threshold referred to in paragraph 2The relevant competent authority shall publish, on a daily basis, details of the aggregate amount of net short positions for each share for which it has received a notification under Article 5. Such disclosure shall not identify the holder of the net short position.
2011/01/20
Committee: ECON
Amendment 287 #
Proposal for a regulation
Article 7 – paragraph 2
2. A relevant publication threshold is a percentage that equals 0.5% of the value of the issued share capital of the company concerned and each 0.1% above that.deleted
2011/01/20
Committee: ECON
Amendment 291 #
Proposal for a regulation
Article 7 – paragraph 3
3. The Commission may, by means of delegated acts in accordance with Article 36 and subject to the conditions of Articles 37 and 38, modify the thresholds mentioned in paragraph 2, taking into account the developments in financial markets.
2011/01/20
Committee: ECON
Amendment 334 #
Proposal for a regulation
Article 12 – paragraph 1 – introductory part
1. A natural or legal person may only enter into a short sale of a share admitted to trading on a trading venue or a short sale of a sovereign debt instrument where one of the following conditions is fulfilled by 11.59 pm on the trading day on which the person enters into the short sale:
2011/01/20
Committee: ECON
Amendment 356 #
Proposal for a regulation
Article 12 – paragraph 1 – point c
(c) the natural or legal person has an arrangement with a third party under which that third party has confirmed that the share or sovereign debt instrument has been located and reserved for lending for the natural or legal person so that settlement can be effected when it is due.
2011/01/26
Committee: ECON
Amendment 375 #
Proposal for a regulation
Article 13
1. A trading venue that has shares or sovereign debt admitted to trading shall ensure that it, or the central counterparty that provides clearing services for the trading venue, has procedures in place which comply with all of the following requirements: (a) where a natural or legal person who sells shares or sovereign debt instruments on the venue is not able to deliver the shares or sovereign debt instrument for settlement within four trading days after the day on which the trade takes place, or six trading days after the day on which the trade takes place in the case of market making activities, then procedures are automatically triggered for the trading venue or central counterparty to buy-in the shares or sovereign debt instrument to ensure delivery for settlement; (b) where the trading venue or central counterparty is not able to buy-in the shares or the sovereign debt instrument for delivery then cash compensation is paid by the trading venue or the central counterparty to the buyer based on the value of the shares or the debt to be delivered at the delivery date plus an amount for any losses incurred by the buyer; (c) the natural or legal person who fails to settle pays an amount to the trading venue or central counterparty to reimburse the trading venue or central counterparty for all amounts paid pursuant to points (a) and (b). 2. A trading venue that has shares or sovereign debt instruments admitted to trading shall ensure that it has procedures in place, or that the settlement system that provides settlement services for the shares or sovereign debt instrument has procedures in place, which ensure that where a natural or legal person who sells shares or sovereign debt instrument on the venue fails to deliver the shares or sovereign debt instrument for settlement by the date on which settlement is due, then such natural or legal person is subject to the obligation to make daily payments to the trading venue or settlement system for each day that the failure continues. The daily payments shall be sufficiently high not to allow the seller to make a profit from the settlement failure and to act as a deterrent to natural or legal persons failing to settle. 3. A trading venue that has shares or sovereign debt admitted to trading shall have in place rules that enable it to prohibit a natural or legal person that is a member of the trading venue from entering into further short sales of shares or sovereign debt instruments on the trading venue as long as that person fails to settle a transaction resulting from a short sale on that trading venue.Article 13 deleted Buy-in procedures and fines for late settlement
2011/01/26
Committee: ECON
Amendment 413 #
Proposal for a regulation
Article 15 – paragraph 1 – introductory part
1. Articles 5, 6, 7, to 8 and 12 shall not apply to the activities of an investment firm or a third country entity or a local firm that is a member of a trading venue or of a market in a third country, whose legal and supervisory framework has been declared equivalent pursuant to paragraph 2, when it holds itself out on a continuous basis as being willing to deals as principal in a financial instrument, whether traded on or outside a trading venue, in either or both or as a systemic internaliser, in any one of the following capacities:
2011/01/26
Committee: ECON
Amendment 427 #
Proposal for a regulation
Article 15 – paragraph 1 – point b a (new)
(ba) by buying and selling financial instruments on its own account against its own proprietary capital at prices defined by it
2011/01/26
Committee: ECON
Amendment 477 #
Proposal for a regulation
Article 19 – paragraph 4 – subparagraph 1
4. The fall in value shall be 10% or more in the case of a share and for other classes of financial instrumentelaborated by ESA (ESMA) considering that there are significant differences ain amount to be specified by the Commissionvolatility.
2011/01/26
Committee: ECON