Changes from report parliamentary committee draft to plenary report

Added(21) Article 35 is amended as follows:

Added(a) in paragraph 1, first subparagraph, the introductory wording is replaced by the following:

Added‘1. Without prejudice to Article 7 of Regulation (EU) No 648/2012, a CCP shall accept to clear financial instruments on a non-discriminatory and transparent basis, including as regards collateral requirements and fees relating to access, regardless of the trading venue on which a transaction is executed.

AddedThe requirement in the first subparagraph shall not apply to exchange-traded derivatives.

AddedThe CCP shall in particular ensure that a trading venue has the right to non-discriminatory treatment of contracts traded on that trading venue in terms of:’;

Added(b) paragraph 3 is replaced by the following:

Added‘3. The CCP shall provide a written response to the trading venue either within three months of permitting access, on condition that a relevant competent authority has granted access pursuant to paragraph 4, or within three months of denying access. The CCP may deny a request for access only under the conditions specified in paragraph 6(a). Where a CCP denies access, it shall provide full reasons in its response and inform its competent authority in writing of the decision. Where the trading venue is established in a Member State other than the one of the CCP, the CCP shall also provide such notification and reasoning to the competent authority of that trading venue. The CCP shall provide access within three months of providing a positive response to the access request.’;

Added(ba) paragraph 4 is replaced by the following:

Added‘4. The competent authority of the CCP or that of the trading venue shall grant a trading venue access to a CCP only where such access would not threaten the smooth and orderly functioning of the markets, in particular due to liquidity fragmentation, or would not adversely affect systemic risk.

AddedIf a competent authority refuses access, it shall issue its decision within two months following receipt of the request referred to in paragraph 2 and provide full reasons to the other competent authority, the CCP and the trading venue including the evidence on which the decision is based.’;

Added(22) Article 36 is amended as follows:

Added(a) in paragraph 1, the first subparagraph is replaced by the following:

Added‘Without prejudice to Article 8 of Regulation (EU) No 648/2012, a trading venue shall, upon request, provide trade feeds on a non-discriminatory and transparent basis, including as regards fees related to access, to any CCP authorised or recognised by that Regulation that wishes to clear transactions in financial instruments that are concluded on that trading venue. That requirement shall not apply to:

Added(a) any derivative contract that is already subject to the access obligations under Article 8 of Regulation (EU) No 648/2012;

Added(b) exchange-traded derivatives.’;

Added(b) paragraph 3 is replaced by the following:

Added‘3. The trading venue shall provide a written response to the CCP within three months either permitting access, under the condition that the relevant competent authority has granted access pursuant to paragraph 4, or denying access. The trading venue may deny access only under the conditions specified pursuant to paragraph 6, point (a). When access is denied, the trading venue shall provide full reasons in its written response and forward that written response to its competent authority. Where the CCP is established in a different Member State than the trading venue, the trading venue shall also forward that written response to the competent authority of the CCP. The trading venue shall provide access within three months of providing a positive response to the access request.’;

Added(ba) paragraph 4 is replaced by the following:

Added‘4. The competent authority of the trading venue or that of the CCP shall grant a CCP access to a trading venue only where such access would not threaten the smooth and orderly functioning of the markets, in particular due to liquidity fragmentation, and where the trading venue has put in place adequate mechanisms to prevent such fragmentation, or would not adversely affect systemic risk.

AddedIf a competent authority denies access it shall issue its decision within two months following receipt of the request referred to in paragraph 2 and provide full reasons to the other competent authority, the trading venue and the CCP including the evidence on which its decision is based.’;

Added(c) paragraph 5 is deleted;

Added(23) in Article 38, paragraph 1 is replaced by the following:

Added‘1. A trading venue established in a third country may request access to a CCP established in the Union only if the Commission has adopted a decision in accordance with Article 28(4) relating to that third country.

AddedA CCP established in a third country may request access to a trading venue in the Union subject to that CCP being recognised under Article 25 of Regulation (EU) No 648/2012.

AddedCCPs and trading venues established in third countries shall only be permitted to make use of the access rights referred to in Articles 35 and 36 with regard to financial instruments covered by those Articles and provided that the Commission has adopted a decision in accordance with paragraph 3 of this Article, determining that the legal and supervisory framework of the third country is considered to provide for an effective equivalent system for permitting CCPs and trading venues authorised under foreign regimes access to CCPs and trading venues established in that third country.’;

Added(24) in Article 38g(1), the introductory wording is replaced by the following:

Added‘Where ESMA finds that a person listed in Article 38b(1), point (a), has not complied with any of the requirements laid down in Article 20, 21, 22, 22a, Article 22b or 26, or Title IVa, it shall take one or more of the following actions:’;

Added(25) in Article 38h(1), the first subparagraph is replaced by the following:

Added‘Where ESMA, in accordance with Article 38k(5), finds that a person listed in Article 38b(1), point (a), has intentionally or negligently not complied with any of the requirements provided for in Article 22, 22a, Article 22b or 26, or in Title IVa, it shall adopt a decision imposing a fine in accordance with paragraph 2 of this Article.’;

Added(26) the following Article 39a is inserted:

Added‘Article 39a Ban on payment for forwarding client orders for execution

AddedInvestment firms acting on behalf of clients shall not receive any fee or commission or non-monetary benefits from any third party for forwarding client orders to any third party for their execution.

AddedThe first subparagraph shall not apply to fees, commissions or non-monetary benefits related to the forwarding of professional clients’ orders for execution, where permitted under the approved and public tariff structure of a regulated market or MTF.’;

Added(27) Article 50 is amended as follows:

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

Added‘2. The power to adopt delegated acts as referred to in the following provisions shall be conferred for an indeterminate period from 2 July 2014: Article 1(9), Article 2(2) and (3), 5(9a), 13(2), 15(5), 17(3), Article 19(2) and (3), and Articles 26(1a), 27(4), ▌27g(7), 27h(4), 31(4), 38k(10), 38n(3), 40(8), 41(8), 42(7), 45(10) and 52(10).’;

Added(b) in paragraph 3, the first sentence is replaced by the following:

Added‘The delegation of power referred to in the following provisions may be revoked at any time by the European Parliament or by the Council: Article 1(9), Article 2(2) and (3), 5(9a), Articles 13(2), 15(5), 17(3), Article 19(2) and (3), and Articles 26(1a), 27(4), ▌27g(7), 27h(4), 31(4), 38k(10), 38n(3), 40(8), 41(8), 42(7), 45(10) and 52(10).”;

Added(c) in paragraph 5, the first sentence is replaced by the following:

Added‘A delegated act adopted pursuant to Article 1(9), Article 2(2) and (3), 5(9a), Articles 13(2), 15(5), 17(3), Article 19(2) and (3), and Articles 26(1a), 27(4), ▌27g(7), 27h(4), 31(4), 38k(10), 38n(3), 40(8), 41(8), 42(7), 45(10) and 52(10) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of three months of notification of that act to the European Parliament and to the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object.”;

Added(28) Article 52 is amended as follows:

Added(a) paragraphs 11 and 12 are replaced by the following:

Added‘11. Three years after the first authorisation of a consolidated tape, the Commission shall, after having consulted ESMA, submit a report to the European Parliament and to the Council on the following:

Added(a) the asset classes covered by a consolidated tape;

Added(b) the timeliness and delivery quality of market data consolidation;

Added(c) the role of market data consolidation in reducing implementation shortfall;

Added(d) the number of subscribers to consolidated market data per asset class;

Added(e) the effect of market data consolidation on remedying information asymmetries between various capital market participants;

Added(f) the appropriateness and functioning of the participation scheme for market data contributions;

Added(g) the effects of the consolidated market data on investments in SMEs.

Added(h) the possibility that the tape facilitates the identification of financial instruments which display features aligned with Regulation [PO please insert reference to the Regulation on European green bonds]

Added12. If by [OP insert date …▌ as of entry into force], no consolidated tapes have emerged through the selection procedures organised by ESMA as referred to in Article 27da, the Commission shall review the framework and shall accompany that review, where appropriate and after having consulted ESMA, with a legislative proposal▌’;

Added(b) paragraphs 13, 14 and 15 are deleted;

Added(c) the following paragraph is added:

Added‘15a. By 30 June 2025, ESMA shall assess whether setting minimum holding periods of options, futures, swaps, forwards and any other derivative contracts and instruments relating at least to wholesale energy products, agricultural products, or emission allowances would effectively limit the volatility on these markets and ensure convergence between prices of derivatives in the delivery month and spot prices for the underlying commodity, without prejudice to price discovery on the market for the underlying commodity.

AddedBy 31 December 2025, on the basis of that report and taking into due account the goals of the capital markets union, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal to amend this Regulation by setting minimum holding periods as referred to in the first subparagraph.’

Added(29) in Article 54, paragraph 2 is deleted.

AddedThis Regulation shall enter into force and apply on the twentieth day following that of its publication in the Official Journal of the European Union.

AddedThis Regulation shall be binding in its entirety and directly applicable in all Member States.

AddedDone at Brussels,