Activities of Burkhard BALZ related to 2011/0296(COD)
Plenary speeches (1)
Markets in financial instruments and repeal of Directive 2004/39/EC - Markets in financial instruments and amendment of the EMIR Regulation on OTC derivatives, central counterparties and trade repositories (debate)
Amendments (17)
Amendment 138 #
Proposal for a regulation
Recital 16
Recital 16
(16) An investment firm executing client orders against own proprietary capital should be deemed a systematic internaliser, unless the transactions are carried out outside regulated markets, MTFs and OTFs on an occasionincidental, ad hoc and irregular basis. Systematic internalisers should be defined as investment firms which, on an organised, frequentgular and systematic basis, deal on own account by executing client orders outside a regulated market, an MTF or an OTF. In order to ensure the objective and effective application of this definition to investment firms, any bilateral trading carried out with clients should be relevant and quantitative criteria should complement the qualitative criteria for the identification of investment firms required to register as systematic internalisers, laid down in Article 21 of Commission Regulation No 1287/2006 implementing Directive 2004/39/EC. While an OTF is any system or facility in which multiple third party buying and selling interests interact in the system, a systematic internaliser should not be allowed to bring together third party buying and selling interests.
Amendment 152 #
Proposal for a regulation
Recital 18
Recital 18
(18) It is not the intention of this Regulation to require the application of pre-trade transparency rules to transactions carried out on an OTC basis, the characteristics of which include that they are incidental, ad-hoc and irregular and are carried out with wholesale counterparties and are part of a business relationship which is itself characterised by dealings above standard market size, and where the deals are carried out outside the systems usually used by the firm concerned for its business as a systematic internaliser.
Amendment 171 #
Proposal for a regulation
Recital 32
Recital 32
(32) In addition to requirements in Directive 2004/39/EC that prevent Member States from unduly restricting access to post-trade infrastructure such as CCP and settlement arrangements, it is necessary that this Regulation removes various other commercial barriers that can be used to prevent competition in the clearing of financialtransferable securities and money market instruments. To avoid any discriminatory practices, CCPs should accept to clear transactions executed in different trading venues, to the extent that those venues comply with the operational and technical requirements established by the CCP. Access should only be denied if certain access criteria specified in delegated acts are not met.
Amendment 175 #
Proposal for a regulation
Recital 33
Recital 33
(33) Trading venues should also be required to provide access includingto data feeds on a transparent and non- discriminatory basis to CCPs that wish to clear transactions executed on the trading venue. The right of access of a CCP to a trading venue should allow for arrangements whereby multiple CCPs are using post-trade data feeds of the same trading venue. However, this should not lead to interoperability for derivatives clearing or create liquidity fragmentation. Licensing and access to information about indices and other benchmarks that are used to determine the value of financial instruments should also be provided to CCPs and other trading venues on a non- discriminatory basis. The removal of barriers and discriminatory practices is intended to increase competition for clearing and trading of financial instruments in order to lower investment and borrowing costs, eliminate inefficiencies and foster innovation in Union markets. The Commission should continue to closely monitor the evolution of post-trade infrastructure and should, where necessary, intervene in order to prevent competitive distortions from occurring in the internal market.
Amendment 208 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
(3) ‘'systematic internaliser’' means an investment firm which, on an organised, frequentgular and systematic basis, deals on own account by executing client orders outside a regulated market or an MTF or an OTF;
Amendment 408 #
Proposal for a regulation
Article 13 a (new)
Article 13 a (new)
Article 13 a Article 13a Trading through systematic internalisers and OTC 1. Transactions in shares, depositary receipts, exchange-traded funds, certificates and other similar financial instruments which are not intragroup transactions as referred to in Article 2a of Regulation (EU) No .../... [EMIR] and which are not concluded on a regulated market or MTF should be concluded through a systematic internaliser unless the transactions are carried out on an OTC basis, the characteristics of which include that they are incidental, ad-hoc and irregular. 2. Transactions in bonds, structured finance products admitted to trading on a regulated market or for which a prospectus has been published, emission allowances and derivatives which are eligible for clearing or which are admitted to trading on a regulated market or are traded on an MTF or an OTF and which are not subject to the trading obligation under Article 26, which are not concluded on a regulated market, MTF, OTF or third-country trading venue assessed as equivalent in accordance with Article 26 (4), should be concluded through a systematic internaliser unless the transactions are carried out on an OTC basis, the characteristics of which include that they are incidental, ad-hoc and irregular.
Amendment 434 #
Proposal for a regulation
Article 17 – paragraph 2
Article 17 – paragraph 2
2. Systematic internalisers shall make the firm quotes provided pursuant to paragraph 1 available to other clients of the investment firm in an objective non- discriminatory way on the basis of their commercial policy provided that the quoted size is at or below the size specific to the instrument.
Amendment 453 #
Proposal for a regulation
Article 18 – paragraph 2
Article 18 – paragraph 2
2. The Commission shall adopt, by means of delegated acts in accordance with Article 41, measures specifying the sizes mentioned in Article 17(3) at which firm shall enter into transactions with any other client to whom the quote is made available. Those measures shall specify that their purpose is to enhance transparency for retail investors and shall define classes of instruments in terms of asset classes, volume and liquidity.
Amendment 603 #
Proposal for a regulation
Article 28 – paragraph 1
Article 28 – paragraph 1
1. Without prejudice to Article 8 of Regulation [ ] (EMIR), a CCP shall accept to clear financialtransferable securities and money market instruments on a non- discriminatory and transparent basis, including as regards collateral requirements and fees related to access, regardless of the trading venue on which a transaction is executed. This in particular should ensure that a trading venue has the right to non-discriminatory treatment in terms of how contracts traded on its platforms are treated in terms of collateral requirements and netting of economically equivalent contracts and cross-margining with correlated contracts cleared by the same CCP. A CCP may require that the trading venue comply with the reasonable operational and technical requirements established by the CCP. This requirement does not apply to any derivative contract that is already subject to the access obligations under Article 8 of Regulation [EMIR]. Access of a trading venue to a CCP under this Article shall be granted only where such access would not require interoperability or threaten the smooth and orderly functioning of markets or adversely affect systemic risk.
Amendment 607 #
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. The CCP shall provide a written response to the trading venue within three months either permitting access, under the condition that the relevant competent authority has not denied access pursuant to paragraph 4, or denying access. The CCP may only deny a request for access under the conditions specified in paragraph 6. If a CCP refuses access it shall provide full reasons in its response and inform its competent authority in writing of the decision. The CCP shall make access possible within threwelve months of providing a positive response to the access request. Any associated costs that arise from paragraphs 1 to 3 shall be borne by the trading venue requesting access, unless otherwise agreed between the CCP and the trading venue requesting access.
Amendment 616 #
Proposal for a regulation
Article 28 – paragraph 6 – point a
Article 28 – paragraph 6 – point a
(a) the conditions under which access could be denied by a CCP, for transferable securities and money market instruments, including conditions based on the volume of transactions, the number and type of users or other factors creating undue risks.
Amendment 618 #
Proposal for a regulation
Article 28 – paragraph 6 – point b
Article 28 – paragraph 6 – point b
(b) the conditions under which access is granted, including confidentiality of information provided regarding financialtransferable securities and money market instruments during the development phase, the non-discriminatory and transparent basis as regards clearing fees, collateral requirements and operational requirements regarding margining.
Amendment 626 #
Proposal for a regulation
Article 29 – paragraph 1
Article 29 – paragraph 1
1. Without prejudice to Article 8a of Regulation [ ] (EMIR), a trading venue shall provide tradepost-trade data feeds on a non- discriminatory and transparent basis, including as regards fees related to access, on request to any CCP authorised or recognised by Regulation [ ] (EMIR) that wishes to clear financial transactions executed on, only where there is a threat trading venueo the smooth and orderly functioning of financial markets. This requirement does not apply to any derivative contract that is already subject to the access obligations under Article 8a of Regulation [EMIR].
Amendment 670 #
Proposal for a regulation
Article 30 – paragraph 1 – subparagraph 2
Article 30 – paragraph 1 – subparagraph 2
A licence including access to that information shall be granted on a reasonable commercial basis within three months following the request by a CCP or a trading venue, and in any event at a price no higher than the lowest price at which access to the benchmark is granted or the intellectual property rights are licensed to anotherstructure for all financial instruments in the same currency treating all CCPs and trading venues in the same time zone similarly. A request for a licence may be rejected by the person with proprietary rights to the benchmark for up to five years after a CCP, trading venue or any related person for clearing and trading purposes has commenced trading and clearing with that benchmark for the first time. A CCP, trading venue or any related person for clearing and trading purposesentity may offer any financial product for the purposes of trading and clearing without obtaining a licence from the index provider.
Amendment 690 #
Proposal for a regulation
Article 31 – paragraph 1 a (new)
Article 31 – paragraph 1 a (new)
1a. In accordance with Article 9(2) regulation (EU) No. 1095/2010, ESMA shall support competent authorities when monitoring the investment products, including structured deposits and financial instruments which are marketed, distributed or sold in the Union before they are marketed, distributed or sold in the Union in cooperation with the competent authorities.
Amendment 707 #
Proposal for a regulation
Article 32 – paragraph 2 – subparagraph 1 – point a
Article 32 – paragraph 2 – subparagraph 1 – point a
(a) a financial instrument or activity or practice gives rise to significant investor protection concernshortcomings in retail investor protection and such shortcomings can only be remedied by a prohibition or restriction or poses a serious threat to the orderly functioning and integrity of financial markets or the stability of whole or part of the financial system;
Amendment 712 #
Proposal for a regulation
Article 32 – paragraph 2 a (new)
Article 32 – paragraph 2 a (new)