What changed between the draft committee report and the plenary report

Added:1. Market operators and investment firms operating a trading venue shall make public current bid and offer prices and the depth of trading interests at those prices which are advertised through their systems for bonds, structured finance products, emission allowances, derivatives traded on a trading venue and package orders. Those market operators and investment firms shall make that information available to the public on a continuous basis during normal trading hours. That publication obligation does not apply to those derivative transactions of non-financial counterparties which are objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity of the non-financial counterparty or of that group.2. The transparency requirements referred to in paragraph 1 shall be calibrated for central limit order book and periodic auction systems only.’;

Removed:Regulation (EU) No 600/2014

Added:(b) paragraph 4 is deleted;

Removed:Article 1 – paragraph 10, Article 22a – paragraph 5: 5. Market data contributors shall provide the information respecting the deferrals as laid down in Articles 7, 11, 20 and 21.

Added:(5) Article 9 is amended as follows:

Removed:Regulation (EU) No 600/2014

Added:(a) in paragraph 1, points (b) and (e)(iii) are deleted;

Removed:Article 1 – paragraph 10, Article 22b - paragraph 1: 1. The Commission shall set up an expert stakeholder group by [OP add 3 months as of entry into force] to provide advice on the quality and the substance of core market data in relation to the output of the consolidated tapes, and the quality of the transmission protocol referred to in Article 22a(1). The expert stakeholder group shall provide advice on a yearly basis through a dedicated report. That advice shall be made public.

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

Removed:Limit the scope of the Commission’s market data expert group, which should only provide advice on the consolidated tape output as to ensure that the CT is effective and its value for EU market participants is maximised. The expert group should not be providing advice on market data interpretation or market data standards beyond the scope of the CT output, which should be left to ESMA.

Added:‘3. Competent authorities shall regularly monitor the use and impact of the waivers granted in accordance with paragraph 1 and inform ESMA of their findings.

Removed:Regulation (EU) No 600/2014

Added:Competent authorities, may, either on their own initiative or upon request by other competent authorities or by ESMA, withdraw a waiver granted under paragraph 1 if they observe that the waiver is being used in a way that deviates from its original purpose or if they consider that the waiver is being used to circumvent the requirements established in this Article.

Removed:Article 1 – paragraph 10, Article 22b (new) – paragraph 2 – subparagraph 1: 2. ESMA shall develop draft regulatory technical standards to specify the quality and the substance of the core market data and the quality of the transmission protocol.

Added:Competent authorities shall notify ESMA and other competent authorities of such withdrawal without delay and before it takes effect, providing full reasons for their decision.’;

Removed:Empowers ESMA to adopt RTS with respect to the CT input and output. ESMA should remain in charge of setting data standards, in order to avoid contradicting indications and practices and to ensure that indications to market participants are clear and coherent. As the CT is prevalently a tool for market participants, the objective of the RTS should be to minimise disruptions in the market, and to ensure that the substance and the format of market data for the CTP is readily usable, and that the CT output is intelligible for all market participants.

Added:(b) in paragraph 5, point (d) is deleted;

Removed:Regulation (EU) No 600/2014

Added:▌

Removed:Article 1 – paragraph 10, Article 22b (new) – paragraph 2 – subparagraph 2 – introductory part: Those draft regulatory technical standards shall in particular specify all of the following:

Added:(6a) Article 11 is replaced by the following:

Removed:See justification of previous amendment.

Added:‘Authorisation of deferred publication

Removed:Regulation (EU) No 600/2014

Added:1. Competent authorities shall be able to authorise market operators and investment firms operating a trading venue to defer the publication of the details of transactions for a period calculated according to the size or type of transaction. The publication of the volume of very large transactions may be deferred for an extended period not exceeding four weeks.

Removed:Article 1 – paragraph 10, Article 22b (new) – paragraph 2 – subparagraph 2 – point a: (a) the market data contributors need to provide to the CTP in order to produce the core market data needed for the CTP to be operational, including the substance and the format of those market data, in accordance with prevailing industry standards and practices

Added:Market operators and investment firms operating a trading venue shall clearly disclose proposed arrangements for deferred trade-publication to market participants and the public. ESMA shall monitor the application of those arrangements for deferred trade-publication and shall submit an annual report to the Commission on how they are used in practice.

Removed:See justification of previous amendment.

Added:The arrangements for deferred publication shall be organised using the following five categories of transactions related to a bond, structured finance product, emission allowance or derivatives traded on a trading venue:

Removed:Regulation (EU) No 600/2014

Added:(a) category 1: transactions of a medium size in a financial instrument for which there is a liquid market;

Removed:Article 1 – paragraph 10, Article 22b (new) – paragraph 2 – subparagraph 3: For the purposes of the first subparagraph, ESMA shall take into account the advice from the technical expert group established in accordance with paragraph 1, and shall take into account international developments and standards agreed at Union or international level. ESMA shall ensure that the draft regulatory technical standards adopted take into account the reporting requirements laid down in Articles 3, 6, 10, 14, 20, 21, 22, 26, 27 and 27g. / Power 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.

Added:(b) category 2: transactions of a medium size in a financial instrument for which there is not a liquid market;

Removed:See justification of previous amendment.

Added:(c) category 3: transactions of a large size in a financial instrument for which there is a liquid market;

Removed:Regulation (EU) No 600/2014

Added:(d) category 4: transactions of a large size in a financial instrument for which there is not a liquid market;

Removed:Article 1 – paragraph 11, Article 23 – paragraph 1– subparagraph 2: deleted

Added:(e) category 5: transactions of a very large size, irrespective of the liquidity of the financial instrument.

Removed:The use of ISIN to define the scope of the STO is self-explanatory, since the first letters of the ISIN are enough to identify EEA ISINs. It thus does not need to be further specified in a list which would mainly create administrative work and additional efforts for ESMA and for market participants that will have to check the list and integrate it in their trading system before trading.

Added:2. The competent authority responsible for supervising one or more trading venues on which a class of bond, structured finance product, emission allowance or derivative is traded may, where the liquidity of that class of financial instrument falls below the threshold determined in accordance with the methodology as referred to in Article 9(5)(a), temporarily suspend the obligations referred to in Article 10. That threshold shall be defined based on objective criteria specific to the market for the financial instrument concerned. Such temporary suspension shall be published on the website of the relevant competent authority.

Removed:Regulation (EU) No 600/2014

Added:The temporary suspension shall be valid for an initial period not exceeding three months from the date of its publication on the website of the relevant competent authority. Such a suspension may be renewed for further periods not exceeding three months at a time if the grounds for the temporary suspension continue to be applicable. Where the temporary suspension is not renewed after that three month period, it shall automatically lapse.

Removed:Article 1 – paragraph 11 a (new), Article 25 – paragraph 2: (11a) in Article 25, paragraph 2 is replaced by the following: / ‘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.’;

Added:Before suspending or renewing the temporary suspension of the obligations referred to in Article 10, the relevant competent authority shall notify ESMA of its intention and provide an explanation. ESMA shall issue an opinion to the competent authority as soon as practicable on whether in its view the suspension or the renewal of the temporary suspension is justified in accordance with the first and second subparagraphs.

Removed:(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0600-20220101)

Added:2a. With respect to sovereign debt instruments, competent authorities of a sovereign debt instrument may allow, with regard to transactions in that sovereign debt instrument in the Union:

Removed:Standardisation of order data would be beneficial for NCAs, that could (a) more easily analyse order data requested to any trading venue in the EU, thereby contributing to a more effective markets surveillance ; (b) allow trading venues to use the same recording and reporting system with any NCA in the EU, avoiding costs linked to compliance with diverging national standards, and (c) align the standardisation of order book data to that of transaction data, thereby ensuring a more consistent treatment of the two categories.

Added:(a) the omission of the publication of the volume of an individual transaction during an extended time period of deferral not exceeding six months; or

Removed:Regulation (EU) No 600/2014

Added:(b) the deferral of the publication of the details of several transactions in an aggregated form for six months.

Removed:Article 1 – paragraph 11 b (new), Article 25 – paragraph 3 – subparagraph 1: (11b) in Article 25, paragraph 3, the first subparagraph is replaced by the following: / ‘3. 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.’

Added:ESMA shall publish on its website the list of the deferred publication related to sovereign debt instruments. ESMA shall monitor the application of those arrangements for deferred publication and shall submit an annual report to the Commission indication how they are used in practice.

Removed:(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02014R0600-20220101)

Added:When the deferral time period lapses, the outstanding details of the transaction and all the details of the transaction on an individual basis shall be published.

Removed:Same as previous amendment.

Added:4. ESMA shall develop draft regulatory technical standards to specify the following in such a way as to enable the publication of information required under this Article and under Article 27g:

Removed:Regulation (EU) No 600/2014

Added:(a) the details of transactions that investment firms, including systematic internalisers, and market operators and investment firms operating a trading venue shall make available to the public for each class of financial instrument concerned in accordance with Article 10(1), including identifiers for the different types of transactions published under Article10(1) and Article 21(1), distinguishing between those determined by factors linked primarily to the valuation of the financial instruments and those determined by other factors;

Removed:Article 1 – paragraph 11 c (new), Article 26 – paragraph 1: (11c) in Article 26, paragraph 1 is replaced by the following: / ‘1. Investment firms, AIFMs as defined in Article 4b of Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers, and UCITS managers, as defined in Article 2.1b of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), providing services defined under Article 4(2) of Directive 2014/65/EU on markets in financial instruments, 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. / The 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 receives that information. / The competent authorities shall establish the necessary arrangements in order to ensure that the information can be shared with other competent authorities upon request.’;