Changes from plenary report to adopted text

RemovedThe expert stakeholder group shall be composed of members with a sufficiently wide range of expertise, skills, knowledge and experience to provide adequate advice.

RemovedMembers of the expert stakeholder group shall be selected following an open and transparent selection procedure. In selecting the members of the expert stakeholder group, the Commission shall ensure that they reflect the diversity of market participants across the Union.

RemovedThe expert stakeholder group shall elect a Chair from among its members. The position of Chair shall be held for a period of two years. The European Parliament may invite the Chair of the expert stakeholder group to make a statement before it and answer any questions from its members whenever so requested.

Removed2. ESMA shall develop draft regulatory technical standards to specify, where necessary, the quality and the substance of the core market data,▌ the quality of the transmission protocol, and measures to address erroneous trade reporting and enforcement standards in relation to data quality.

RemovedThose draft regulatory technical standards shall in particular specify all of the following:

Removed(a) the content and the format of the core market data fields and the regulatory data fields, in accordance with prevailing industry standards and practices;

Removed(b) any data fields required to be contributed to and by the CTP in addition to core market data as referred to in Article 2(1)(36b) and▌ regulatory data as referred to in Article 2(1)(36c);

Removed(ba) what constitutes the transmission of data “as close to real time as technically possible”.

RemovedFor the purposes of the first subparagraph, ESMA shall take into account the advice from ▌the ▌expert stakeholder group established in accordance with paragraph 1, international developments, and standards agreed at Union or international level. ESMA shall ensure that the draft regulatory technical standards take into account the reporting requirements laid down in Articles 3, 6, 8, 10, 14, 18, 20, 21 and 27g.

RemovedESMA shall submit those draft regulatory technical standards to the Commission by [12 months after the date of entry into force of this amending Regulation].

RemovedPower is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Removed1. Trading venues and their members or participants, systematic internalisers, APAs and CTPs shall synchronise their business clocks to record the date and time of any reportable event.

Removed2. ESMA shall, in accordance with international standards, develop draft regulatory technical standards to specify the level of accuracy to which clocks are to be synchronised.

RemovedESMA shall submit those draft regulatory technical standards to the Commission by [OP insert a date 6 months as of entry into force].

RemovedPower 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.’;

Removed(11) in Article 23, paragraph 1 is replaced by the following:

Removed‘1. An investment firm shall ensure that the trades it undertakes in shares with an EEA International Securities Identification Number (ISIN) admitted to trading on a regulated market shall take place on a regulated market, MTF, systematic internaliser or a third-country trading venue assessed as equivalent in accordance with Article 25(4), point (a) of Directive 2014/65/EU, as appropriate, unless :

Removed(a) those shares are traded on a third-country venue in a non-EEA currency; or

Removed(b) those trades are carried out between eligible counterparties, between professional counterparties or between eligible and professional counterparties and do not contribute to the price discovery process.

Removed▌

Removed(11a) Article 25 is amended as follows:

Removed(a) paragraph 2 is replaced by the following:

Removed‘2. The operator of a trading venue shall keep at the disposal of the competent authority, for at least five years, the relevant data relating to all orders in financial instruments which are advertised through their systems in an electronic and machine-readable format and using a common template in accordance with the ISO 20022 methodology. The records shall contain the relevant data that constitute the characteristics of the order, including those that link an order with the executed transaction(s) that stems from that order and the details of which shall be reported in accordance with Article 26(1) and (3). ESMA shall perform a facilitation and coordination role in relation to the access by competent authorities to information under this paragraph.’;

Removed(b) in paragraph 3, the first subparagraph is replaced by the following:

Removed‘ESMA shall develop draft regulatory technical standards to specify the details and formats of the relevant order data required to be maintained under paragraph 2 of this Article that is not referred to in Article 26.’

Removed(11b) in Article 26, paragraph 1 is replaced by the following:

Removed‘1. Investment firms which execute transactions in financial instruments shall report complete and accurate details of such transactions to the competent authority as quickly as possible, and no later than the close of the following working day.

RemovedThe competent authorities shall, in accordance with Article 85 of Directive 2014/65/EU, establish the necessary arrangements in order to ensure that the competent authority of relevant markets also receive that information.

RemovedThe competent authorities shall without undue delay make available to ESMA any information reported in accordance with this Article.

Removed1a. By ... [12 months after the date of entry into force of this amending Regulation], the Commission shall, in close cooperation with ESMA, assess the possibility of extending the requirements of this Article to AIFMs as defined in Article 4(1), point (b) of Directive 2011/61/EU, and management companies, as defined in Article 2.1b of Directive 2009/65/EC, which provide investment services and activities, as defined in Article 4(1), point (2) of Directive 2014/65/EU and which execute transactions in financial instruments. In particular, the Commission shall include a cost-benefit analysis and an evaluation of the scope of such extension.

RemovedOn the basis of that assessment and taking into account the goals of the capital markets union, the Commission is empowered to adopt delegated acts in accordance with Article 50 to amend this Regulation by extending the requirements of this Article as set out in the first subparagraph.’;

Removed(11c) in Article 26(2), the first subparagraph is replaced by the following:

Removed‘The obligation laid down in paragraph 1 shall apply to:

Removed(a) financial instruments which are admitted to trading or traded on a trading venue or for which a request for admission to trading has been made;

Removed(b) financial instruments where the underlying is a financial instrument traded on a trading venue;

Removed(c) financial instruments where the underlying is an index or a basket composed of financial instruments traded on a trading venue; and

Removed(ca) derivatives subject to the clearing obligation set out in Article 4 of Regulation (EU) No 648/2012 executed outside a trading venue.’;

Removed(11d) in Article 26, paragraph 3 is replaced by the following:

Removed‘3. The reports shall, in particular, include details of the names and numbers of the financial instruments bought or sold, the quantity, the dates and times of execution, the transaction prices, a designation to identify the parties on whose behalf the investment firm has executed that transaction, a designation to identify the persons and the computer algorithms within the investment firm responsible for the investment decision and the execution of the transaction, a designation to identify the entity subject to the reporting obligation, a designation to identify the applicable waiver under which the trade has taken place and means of identifying the investment firms concerned. Reports on a transaction made at the trading venue shall include a transaction identification code generated and disseminated by the trading venue to both buying and selling members of the trading venue. For transactions not carried out on a trading venue, the reports shall include a designation identifying the types of transactions in accordance with the measures to be adopted pursuant to Article 20(3)(a) and Article 21(5)(a). For commodity derivatives, the reports shall indicate whether the transaction reduces risk in an objectively measurable way in accordance with Article 57 of Directive 2014/65/EU.’;

Removed(11e) in Article 26, paragraph 5 is replaced by the following:

Removed‘5. The operator of a trading venue shall report details of transactions in financial instruments traded on its platform which are executed through its systems by any member, participant or user not subject to this Regulation in accordance with paragraphs 1 and 3.’;

Removed(11f) in Article 26(6), the first subparagraph is replaced by the following:

Removed‘In reporting the designation to identify the clients as required under paragraphs 3 and 4, investment firms shall use an ISO 17442 legal entity identifier code established to identify parties that are eligible for the code. The code shall be used to identify eligible parties regardless of their legal status and the way in which they are financed. For parties that are not eligible for the code, a national identifier established to identify parties that are not eligible for the legal entity identifier code shall be used.’;

Removed(12) Article 26(9) is amended as follows:

Removed▌

Removed(a) the first subparagraph is amended as follows:

Removed(i) point (c) is replaced by the following:

Removed‘(c) the references of the financial instruments bought or sold, the quantity, the dates and times of execution, the transaction prices, the information and details of the identity of the client, a designation to identify the clients on whose behalf the investment firm has executed that transaction, a designation to identify the persons and the computer algorithms within the investment firm responsible for the investment decision and the execution of the transaction, a designation to identify the applicable waiver under which the trade has taken place, the means of identifying the investment firms concerned, the way in which the transaction was executed, data fields necessary for the processing and analysis of the transaction reports in accordance with paragraph 3;’;

Removed(ii) point (d) is deleted;

Removed(iii) point (e) is replaced by the following:

Removed‘(e) the relevant categories of indices to be reported in accordance with paragraph 2;’;

Removed(iv) the following points are added:

Removed‘(ia) the conditions for linking specific transactions and the means of the identification of aggregated orders resulting in the execution of a transaction; and

Removed(ib) the date by which transactions are to be reported.’;

Removed(b) the second subparagraph is replaced by the following:

Removed‘ESMA shall submit those draft regulatory technical standards to the Commission by ... [3 years after the date of entry into force of this amending Regulation].’;

Removed(13) in Article 26, the following paragraph 11 is added:

Removed‘11. By [OP insert date 2 years as of date of publication], ESMA shall submit to the Commission a report for the development of an integrated collection of transaction reporting data and for the streamlining of data flows under Article 26 of this Regulation to:

Removed(a) reduce duplicative or inconsistent requirements for transaction data reporting, and in particular duplicative or inconsistent requirements laid down in this Regulation, Regulation (EU) 2019/834 of the European Parliament and of the Council*1 , Regulation (EU) 2015/2365, and in other legislation of the financial industry;

Removed(b) improve data standardisation and efficient sharing and use of data reported within any Union reporting framework by any relevant competent authority, both Union and national.