What changed between the draft committee report and the plenary report

Added:(b) the time limit that would be deemed in compliance with the obligation to publish as close to real time as possible, including when trades are executed outside ordinary trading hours;

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

Added:(c) for the purposes of determining the categories referred to in paragraph 1, the third subparagraph of this Article, what constitutes a transaction of a medium, large and very large size in a liquid and illiquid financial instrument as referred to in paragraph 1, third subparagraph, of this Article and in Article 21(1);

Removed:Ensuring a level playing field between the AIFM/UCITS firms based in jurisdictions with local requirements to obtain the relevant information for market abuse purposes and those based in the jurisdictions where such requirements are not in place. It will also ensure a level playing field among the MiFID Investment Firms and AIFM/UCITS management companies providing one or more MiFID services to third parties; especially since a move from operating under a MiFID Investment Firm license to being licensed under AIFMD or UCITS Directive has been observed by some NCAs. Also addresses the fact that the current MiFIR provisions do not allow for a broad exchange of MiFIR transaction data among NCAs because data can only be exchanged with the competent authority “of the most relevant market in terms of liquidity”. Such a narrow reference does not allow for an exchange that adequately reflect NCAs’ evolving supervisory needs to monitor the most recent market developments. In line with the principles outlined in the Commission data strategy to maximise the potential usage of transaction reporting for all suitable purposes and avoid duplication of reporting flows. Amendment permits NCAs to share transaction reports for wider purposes.

Added:(d) the price and volume deferrals applicable to each of the five categories set out in the paragraph 1, the third subparagraph, points (a)-(e), applying the following maximum durations:

Removed:Regulation (EU) No 600/2014

Added:(i) for transactions in category 1: a price deferral and a volume deferral not exceeding 15 minutes;

Removed:Article 1 – paragraph 11 d (new), Article 26 – paragraph 2: (11d) in Article 26, paragraph 2 is replaced by the following: / ‘2. The obligation laid down in paragraph 1 shall apply to: / (b) financial instruments where the underlying is a financial instrument traded on a trading venue; / (c) financial instruments where the underlying is an index or a basket composed of financial instruments traded on a trading venue; and / (ca) derivatives subject to the clearing obligation set out in Article 4 of Regulation (EU) No 648/2012 executed outside a trading venue. / The obligation shall apply to transactions in financial instruments referred to in points (a) to (c) irrespective of whether or not such transactions are carried out on the trading venue.’;

Added:(ii) for transactions in category 2: a price deferral and a volume deferral not exceeding the end of the trading day;

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

Added:(iii) for transactions in category 3: a price deferral not exceeding the end of the trading day and a volume deferral not exceeding one week following the transaction date;

Removed:Transaction reporting amendments to accommodate new scope OTC reporting of derivatives. The ToTV criterion is kept here in addition to the new scope for OTC transactions because there is a Market Abuse element to transaction reporting which requires full information of everything related to trading venues.

Added:(iv) for transactions in category 4: a price deferral not exceeding the end of the trading day and a volume deferral not exceeding two weeks following the transaction date;

Removed:Regulation (EU) No 600/2014

Added:(v) for transactions in category 5: a price deferral and a volume deferral not exceeding four weeks following the transaction date.

Removed:Article 1 – paragraph 11 e (new), Article 26 – paragraph 3: (11e) in Article 26, paragraph 3 is replaced by the following: / ‘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, 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.’;

Added:For each of the categories set out under paragraph 1, the third subparagraph, points (a)-(e), ESMA shall regularly recalibrate the applicable deferral duration with the aim of gradually decreasing it where appropriate. Six months after the decreased deferral durations become applicable, ESMA shall perform a quantitative and qualitative review to assess the effects of the decrease. Where available, ESMA shall use the post-trade transparency data published by the consolidated tape for this purpose. If adverse effects to the financial instruments appear, ESMA shall increase the deferral duration back to the previous level.

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

Added:4b. ESMA shall submit the draft regulatory technical standards referred to in paragraph 4 to the Commission by ... [six months after the date of entry into force of this amending Regulation].

Removed:Proposal aims to ensure consistency with revised EMIR TS

Added:Power 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.’;

Removed:Regulation (EU) No 600/2014

Added:(7) ▌Article 13, is replaced by the following:

Removed:Article 1 – paragraph 11 f (new), Article 26 – paragraph 5: (11f) in Article 26, paragraph 5 is replaced by the following: / ‘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.’;

Added:‘1. Market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall make the information published in accordance with Article 3 and Article 4, Articles 6 to 11, and Articles 14, 20, 21, 27g and 27h, available to the public on a reasonable commercial basis and ensure non-discriminatory access to the information. Market operators and investment firms operating a trading venue, APAs and systematic internalisers shall make such information available free of charge 15 minutes after publication.

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

Added:2. Providing data on a reasonable commercial basis means that the price of market data shall be based on the cost of producing and disseminating such data and may include a reasonable margin.

Removed:The term ‘any member, participant or user’ is more precise than the term 'firm' and would clearly encompass any entity that executes transaction on trading venues. This approach: (i) ensures that the information on the trading activity on a given trading venue is complete and consistent with the information provided by other trading venues (ii) ensures a better alignment with the order record keeping requirements under Article 25 of MiFIR (iii) will have a positive impact on the application of reporting rules under the DLT Pilot regime

Added:2a. Market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall, upon request, provide the competent authorities and ESMA with information on the actual costs of producing and disseminating market data including the margins.

Removed:Regulation (EU) No 600/2014

Added:3. ESMA shall develop draft regulatory technical standards to:

Removed:Article 1 – paragraph 11 g (new), Article 26 – paragraph 6 – subparagraph 1: (11g) in Article 26, paragraph 6, the first subparagraph is replaced by the following: / ‘6. 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.’;

Added:(a) specify what constitutes a reasonable commercial basis, as well as the content, format and terminology of the reasonable commercial basis information that trading venues, APAs, CTPs and systematic internalisers have to make available to the public;

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

Added:(b) specify the frequency, contact details and format of the information to be provided to the competent authorities and ESMA in accordance with paragraph 2a;

Removed:Explicits that the obligation to use the LEI applies to all entities that are eligible for the LEI regardless of their legal status and the way in which they are financed, and is in line with ESMA MiFIR review report on transaction reporting and the commission’s FAQ on EMIR. Market participants would incur an initial cost for collecting from their systems the information on client category and adapting the reporting scheme, but this cost would be lower than the set-up of a specific new reporting system to provide this information to their NCA.

Added:(c) identify the cost criteria of producing and disseminating market data resulting from trading activities and specify what constitutes a reasonable margin that market operators and investment firms operating a trading venue, APAs, CTPs and systematic internalisers shall follow to comply with Article 13(2).

Removed:Regulation (EU) No 600/2014

Added:ESMA shall regularly monitor the developments in market data costs and the levels of compliance with the rules, and shall regularly update its draft regulatory technical standards in light of the result of its assessment.

Removed:Article 1 – paragraph 12, Article 26 – paragraph 9: deleted / (deleted) / (deleted) / (deleted) / (deleted)

Added:ESMA shall submit those draft regulatory technical standards to the Commission by [OP please insert XX months after entry into force].

Removed:Regulation (EU) No 600/2014

Added: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.’;

Removed:Article 1 – paragraph 12 a (new), Article 26 – paragraph 9: (12a) in Article 26, paragraph 9 is replaced by the following: / ‘9. ESMA shall develop draft regulatory technical standards to specify: / (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; / (deleted) / (e) the relevant categories of indices to be reported in accordance with paragraph 2; / (h) what constitutes a transaction and execution of a transaction for the purposes of this Article; / (i) when an investment firm is deemed to have transmitted an order for the purposes of paragraph 4; / (ia) the conditions for linking specific transactions and the means of the identification of aggregated orders resulting in the execution of a transaction; / (ib) the date by which transactions are to be reported. / ESMA shall submit those draft regulatory technical standards to …

Added:(8) Article 14 is amended as follows:

Removed:(02014R0600-20220101)

Added:(a) paragraphs 2 and 3 are replaced by the following:

Removed:Regulation (EU) No 600/2014

Added:‘2. This Article and Articles 15, 16 and 17 shall apply to systematic internalisers when they deal in sizes up to the threshold determined by ESMA in accordance with Article 4(6)(ea). Systematic internalisers shall not be subject to this Article and Articles 15, 16 and 17 when they deal in sizes above that threshold.

Removed:Article 1 – paragraph 14 a (new), Article 27d: (14a) Article 27d is amended as follows: / (a) the title is replaced by the following: / ‘Article 27d / Procedures for granting and refusing applications for authorisation for ARMs and APAs’; / (b) paragraph 1 is replaced by the following: / ‘1. The applicant APA or ARM shall submit an application providing all information necessary to enable ESMA, or the national competent authority where relevant, to confirm that the APA or ARM has established, at the time of initial authorisation, all the necessary arrangements to meet its obligations under the provisions of this Title, including a programme of operations setting out, inter alia, the types of services envisaged and the organisational structure.’; / (c) paragraph 3 is replaced by the following: / ‘3. ESMA, or the national competent authority where relevant, shall, within six months from the receipt of a complete application, assess the compliance of the APA or ARM with this Title. It shall adopt a fully reasoned decision granting or refusing authorisation and shall notify the applicant APA or ARM accordingly within five working days.’;

Added:3. Systematic internalisers ▌minimum quoting size shall be determined by ESMA in accordance with paragraph 7. For a particular share, depository receipt, ETF, certificate or other financial instrument that is similar to those financial instruments and that is traded on a trading venue, each quote shall include a firm bid and offer price, or firm bid and offer prices for a size or sizes which could be up to the threshold determined by ESMA in accordance with paragraph 7. The price or prices shall reflect the prevailing market conditions for that share, depositary receipt, ETF, certificate or financial instrument that is similar to those financial instruments.’;

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

Added:(b) the following paragraph 6a is inserted:

Removed:The scope of this Article should be limited to ARM and APAs, to align with the proposal to cover the authorisation procedure for CTPs in Article 27db.

Added:‘6a. ESMA shall, taking into consideration efficient valuation of shares, depositary receipts, ETFs, certificates and other similar financial instruments as well as the provision of favourable deals for investment firm clients, assess the appropriateness of the threshold for:

Removed:Regulation (EU) No 600/2014

Added:(a) the arrangements for the publication of a firm quote as referred to in paragraph 1;

Removed:Article 1 – paragraph 15, Article 27d a (new): (15) the following Article is inserted: / ‘Article 27da / Process for the selection of consolidated tape providers / 1. By ... [three months after the date of entry into force of the delegated act under Article22b(2)], ESMA shall organise a selection procedure for the appointment of the CTP for a five-year term. ESMA shall organise a separate selection procedure for each asset class prioritising bonds and shares and ETFs over derivatives. Each selection procedure shall be initiated no later than six months following the initiation of the preceding one. / 2. For each of the asset classes referred to in paragraph 1, ESMA shall select the applicant for subsequent authorisation on the basis of the following criteria: / (a) the technical ability of the applicant to provide a resilient consolidated tape throughout the Union; / (b) the capacity of the applicant to comply with the organisational requirements laid down in Article 27h; / (ba) the ability to receive, consolidate and disseminate pre-trade and post-trade market data for shares, up to the first five layers of the orders book, and post-trade data for ETFs, bonds and derivatives; / (c) the adequacy of the governance structure of the applicant; / (d) the adequacy of the speed at which the applicant can disseminate core market data; / (e) the appropriateness of the applicant’s methods and arrangements to ensure data quality; / (f) the reasonable level of total expenditure needed by the applicant to develop the consolidated tap…

Added:(b) the size below which this Article and Articles 15, 16 and 17 shall apply to systematic internalisers as referred to in paragraph 2;

Removed:Regulation (EU) No 600/2014