European Financial Services Law (International and European Business Law)

This volume analyses and explains EU legislation governing financial services. It is for legal practitioners in international law firms, the financial industry, regulators, and academics needing an in-depth understanding of financial services regulations. It is intended to serve as a handy reference book, providing both easy-to-understand overviews of complex topics and insightful analyses of difficult legal issues. Experts renowned in their fields explain, article-by-article, the important EU directives and regulations governing financial services. Examples illustrate how important provisions apply in practice. Level ‡and ˆmeasures are put into context. The book is structured as follows: securities and markets Service market behaviour market transparency and information funds securities clearing and settlement payment services. For each subject area, the most relevant directives and regulations have been selected. Legal texts covered in this book include, among others, the following: MiFID II and MiFIR MAR and MAD Prospectus Directive PRIIP Regulation Transparency Directive Short Selling Regulation Rating Agency Regulation UCITS and AIFMD Venture Capital Funds Regulation Finality Directive Financial Collateral Directive EMIR SEPA Regulation. Cover 1. Security Markets and Services Introduction to MiFID II and MiFIR Matthias Lehmann I. Overview II. Economic rationale III. Key principles IV. Genesis Markets in Financial Instruments Directive (MiFID II) Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (OJ L 173, 12.6.2014, p. 349-496) Title I Scope and Definitions Article 1 Scope I. General overview 1. Purpose 2. Background 3. Context II. Personal scope 1. Investment firms 2. Market operators 3. Data reporting service providers 4. Algorithmic traders and holders of positions in commodity derivatives III. Material scope IV. Territorial scope Article 2 Exemptions I. General Matthias Lehmann 1. Purpose 2. Level 2 and 3 measures II. Exempted persons 1. Insurances 2. Intra-group service providers 3. Other regulated professions 4. Persons dealing on own account 5. Operators in emissions allowances 6. Administrators of employee participation schemes 7. Public debt management 8. Investment funds 9. Persons dealing on own account and providing services in commodities or emission allowances 10. Persons giving free advice 11. Peculiar national exemptions 12. Transmission systems operator 13. Central securities depositories Article 3 Optional exemptions I. General features Matthias Lehmann 1. Purpose 2. Background 3. Context II. Exempted persons 1. Investment service providers not holding clients’ funds or securities 2. Investment service providers for local electricity and natural gas undertakings 3. Investment service providers for emission allowances III. Conditionality Article 4 Definitions I. General features 1. Purpose 2. Level 2 measures II. Definitions 1. Investment firm 2. Algorithmic trading 3. High-frequency algorithmic trading III. Challenges 1. The categorisation of robo-advice 2. The categorisation of Initial Coin Offerings (ICOs) Title II Authorisation and operating conditions for investment firms Dirk Zetzsche Chapter I Conditions and procedures for authorisation Introduction to Chapter I Article 5 Requirement for authorisation I. General features 1. Recitals II. Commentary 1. Authorisation requirement (Art 5(1) MiFID) 2. Authorisation of market operators (Art 5(2) MiFID) 3. Register of investment firms (Art 5(3) MiFID) 4. Head office (Art 5(4) MiFID) Article 6 Scope of authorisation I. General features 1. Recitals 2. Other regulatory texts II. Commentary 1. Scope of authorisation (Art 6 (1) MiFID) 2. Extension of scope (Art 6 (2) MiFID) 3. European passport (Art 6 (3) MiFID) Article 7 Procedures for granting and refusing requests for authorisation I. General features 1. Recitals 2. Implementing acts 3. Other regulatory texts II. Commentary 1. Compliance with MiFID (Art 7(1) MiFID) 2. Application (Art 7(2) MiFID) 3. Assessment period (Art 7(3) MiFID) 4. Implementing legislation (Art 7(4), (5) MiFID) Article 8 Withdrawal of authorisations I. General features; recitals II. Commentary 1. Passivity (Art 8(a) MiFID) 2. Irregular application (Art 8(b) MiFID) 3. Material changes (Art 8(c) MiFID) 4. Material breaches (Art 8(d) MiFID) 5. National law (Art 8(e) MiFID) 6. Notification to ESMA Article 9 Management body I. General features 1. Recitals 2. Implementing acts 3. Other regulatory texts II. Commentary 1. Compliance with Art 88, 91 CRD IV (Art 9(1) MiFID) 2. Additional non-executive directorship (Art 9(2) MiFID) 3. Management body’s duties and responsibilities (Art 9(3) MiFID) 4. Fitness & properness (Art 9(4) MiFID) 5. Notification re management and changes (Art 9(5) MiFID) 6. Four-eyes-principle (Art 9(6) MiFID) Article 10 Shareholders and members with qualifying holdings I. General features 1. Recitals 2. Implementing acts 3. Other regulatory texts II. Commentary 1. Suitability of shareholders with qualifying holdings (Art 10(1) MiFID) 2. Close links to other persons (Art 10(1), second para MiFID) 3. Relations to Third Countries (Art 10(2) MiFID) 4. Appropriate measures to end harmful influence (Art 10(3) MiFID) Article 11 Notification of acquisitions and disposals of qualifying holdings I. General features; recitals II. Commentary 1. Notification of acquisition and disposal of qualifying holdings by shareholder (Art 11(1) MiFID) a) Proposed acquisition (Art 11(1) MiFID) b) Notification threshold (Art 11(1), subpara 3 and 4 MiFID) 2. Suitability check re acquirer (Art 11(2) MiFID) a) Scope (Art 11(2) MiFID) b) Cooperation of NCAs (Art 11(2), second para MiFID) c) Reliance on NCAs’ input 3. Disclosures by investment firm (Art 11(3) MiFID) 4. Sanctions (Art 11(4) MiFID) Article 12 Assessment procedures I. General features 1. Recitals 2. Implementing acts II. Commentary 1. Assessment period (Art 12(1)-(3) MiFID) 2. Assessment decision (Art 12(4)-(5) MiFID) 3. Maximum closing period (Art 12(7) MiFID) 4. Implementing legislation (Art 12(8), (9) MiFID) Article 13 Assessment I. General features 1. Recitals 2. Implementing acts II. Commentary 1. Criteria for suitability assessment (Art 13(1) MiFID) 2. Reasons to oppose acquisition (Art 13(2) MiFID) 3. Information necessary to carry out the assessment (Art 13(3) MiFID) 4. Discrimination ban (Art 13(4) MiFID) Article 14 Membership of an authorised investor compensation scheme I. General features; recitals II. Commentary Article 15 Initial capital endowment I. General features; recitals Article 16 Organisational requirements I. General features Dirk Zetzsche 1. Recitals 2. Implementing acts 3. Other regulatory texts II. Commentary 1. Organisational requirements (Art 16(1) MiFID) a) Single Rulebook b) Overview c) Proportionality 2. Organisation of the investment firm (Art 16(2) to (4) MiFID) a) Adequate policies and procedures (Art 16(2) MiFID) b) Conflicts of interest (Art 16(3) MiFID) c) Continuity and regularity of service (Art 16(4) MiFID) 3. Product governance, target market (Art 16(3), second para to end MiFID) a) Objective b) Scope c) Minimum content d) Policy, review e) Level 2 legislation 4. Outsourcing (Art 16(5) MiFID) 5. Risk management, internal controls, IT systems (Art 16(5), second para MiFID) 6. Record keeping, recording phone conversation, communications a) Record keeping (Art 16(6), (11) MiFID) b) Recording phone conversations and electronic communications (Art 16(7) MiFID) c) Level 2 legislation d) Minimum list of records to be kept by the investment firm 7. Client protection (Art 16(8)-(11) MiFID) a) Safeguarding clients’ rights and asset segregation (Art 16(8) MiFID) b) Prohibition to use clients’ assets (Art 16(9) MiFID) c) Prohibition of title transfer financial collateral arrangements with retail clients (Art 16(10) MiFID) d) Safeguarding client assets in exceptional cases (Art 16 (11) MiFID) 8. Implementing legislation 9. Sanctioning Article 17 Algorithmic trading I. General features 1. Recitals 2. Implementing acts 3. Other regulatory texts II. Commentary 1. Fundamentals on algorithmic trading 2. Effective systems and controls (Art 17(1) MiFID) 3. Reporting and record keeping (Art 17(2) MiFID) a) Notification of algorithmic trading (Art 17(2) MiFID) b) Reporting on algorithmic trading (Art 17(2), second, third para MiFID) c) Record keeping (Art 17(2), fourth para MiFID) d) Record keeping in case of high-frequency trading (Art 17(2), fifth para MiFID) 4. Algotraders pursuing market making strategies (Art 17(3), (4) MiFID) 5. Provision of direct electronic access to trading venue (Art 17(5) MiFID) 6. General clearing member (Art 17(6) MiFID) 7. Implementing legislation (Art 17(7) MiFID) Article 18 Trading process and finalisation of transactions in an MTF and an OTF I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Multilateral system 2. Multilateral trading facility 3. Organised trading facility 4. Rules for MTFs and OTFs Article 19 Specific requirements for MTFs I. General features 1. Purpose 2. Legislative history II. Commentary Article 20 Specific requirements for OTFs I. General features 1. Purpose 2. Background II. Commentary Chapter II Operating conditions for investment firms Section 1 General provisions Article 21 Regular review of conditions for initial authorisation I. General features Martin Brenncke 1. Purpose II. Commentary Article 22 General obligation in respect of on-going supervision Article 23 Conflicts of interest I. General features 1. Purpose 2. Level 2 and 3 measures II. General (Art 23(1)) III. Disclosure (Arts 23(2) and (3)) Foreword to Articles 24 to 30 Foreword to Arts 24 to 30 Article 24 General principles and information to clients I. General features 1. Purpose 2. Level 2 and 3 measures II. Best interest duty (Art 24(1)) III. Product governance (Art 24(2)) 1. MiFID II Delegated Directive 2. ESMA’s guidelines on product governance IV. Information to clients (Arts 24(3) through (6)) 1. Information and marketing communications 2. Mandated disclosure a) General requirements b) MiFID II Delegated Regulation c) Information about costs and charges d) Disclosure requirements for certain investment services 3. Investment advice V. Derogation from the scheme created by Art 24 (Art 24(6) VI. Independent investment advice (Art 24(7)) VII. Inducements (Arts 24(8)-(9)) 1. Portfolio management services 2. All other investment services 3. Research conducted by third parties VIII. Staff remuneration (Art 24(10)) IX. Cross-selling practices (Art 24(11)) X. Gold-plating (Art 24(12)) Article 25 Assessment of suitability and appropriateness and reporting to clients I. General features 1. Purpose 2. Level 2 and 3 measures II. Necessary knowledge and competence (Art 25(1)) III. Suitability (Art 25(2)) 1. Know your client 2. The suitability assessment IV. Appropriateness (Art 25(3)) V. Execution-only (Art 25(4)) VI. Client agreements (Art 25(5)) VII. Reporting to clients (Art 25(6)) 1. General reporting obligation 2. Suitability statement Article 26 Provision of services through the medium of another investment firm I. General features II. Commentary Article 27 Obligation to execute orders on terms most favourable to the client I. General features 1. Purpose 2. Level 2 and 3 measures II. The best possible results for clients (Art 27(1)) III. Inducements for routing client orders (Art 27(2)) IV. Publishing periodic reports (Art 27(3)) and the top 5 execution venues (Art 27(6)) V. Order execution policies (Arts 27(4), (5), and (7)) Article 28 Client order handling rules I. General features 1. Purpose 2. Level 2 and 3 measures II. General principles (Art 28(1)) III. Aggregation and allocation of client orders IV. Client limit orders (Art 28(2)) Article 29 Obligations of investment firms when appointing tied agents I. General features II. Commentary Article 30 Transactions executed with eligible counterparties I. General features 1. Purpose 2. Level 2 and 3 measures II. Commentary Section 2 Market transparency and integrity Article 31 Monitoring of compliance with the rules of the MTF or the OTF and with other legal obligations Christoph Kumpan and Ronny Grütze I. General features 1. Purpose 2. Context 3. Legislative history 4. Recitals; level 2 measures II. Commentary Article 32 Suspension and removal of financial instruments from trading on an MTF or an OTF I. General features 1. Purpose 2. Context 3. Recitals; level 2 measures II. Commentary Section 3 SME growth markets Article 33 SME growth markets I. General features 1. Purpose 2. Background 3. Recitals; level 2 measures II. Commentary Chapter III Rights of investment firms Dirk Zetzsche Introduction to Chapter III Intro Chapter III Article 34 Freedom to provide investment services and activities I. General features 1. Purpose 2. Recitals 3. Implementing acts 4. Other regulatory texts II. Commentary 1. European passport (Art 34(1) MiFID) 2. Application for notification (Art 34(2), first para MiFID) 3. Tied agent passport notification (Art 34(2), second para, and Art 34(5) MiFID) 4. One month notification period (Art 34(3) MiFID) 5. Amendments to notification materials (Art 34(4) MiFID) 6. Cross-border access to remote users (Art 34(6), (7) MiFID) 7. Implementing legislation (Art 34 (8), (9) MiFID) Article 35 Establishment of a branch I. General features 1. Purpose 2. Recitals 3. Implementing acts 4. Other regulatory texts II. Commentary 1. Right to establish a branch and use tied agents (Art 35 (1) MiFID) 2. Application for Notification (Art 35(2) MiFID) 3. Tied agents (Art 35(2), second para, and (7) MiFID) 4. Three month notification period (Art 35(3),(5),(7) MiFID) 5. Information on compensation scheme (Art 35(4) MiFID) 6. Branch commencing business (Art 35(6), (7) MiFID) 7. Delineations of supervisory powers (Art 35(8), (9) MiFID) 8. Amendments to notification materials (Art 35(10) MiFID) 9. Implementing legislation (Art 35(11), (12) MiFID) Article 36 Access to regulated markets Christoph Kumpan and Ronny Grütze I. General features 1. Purpose 2. Legislative history 3. Recitals II. Commentary Article 37 Access to CCP, clearing and settlement facilities and right to designate settlement system I. General features 1. Purpose 2. Legislative history 3. Recitals II. Commentary Article 38 Provisions regarding CCPs, clearing and settlement arrangements in respect of MTFs I. General features 1. Purpose 2. Legislative history 3. Recitals II. Commentary Chapter IV Provision of investment services and activities by third country firms Dirk Zetzsche Section 1 Provision of services or performance of activities through the establishment of a branch Introduction to Chapter IV Article 39 Establishment of a branch I. General features 1. Purpose 2. Recitals 3. Implementing acts 4. Other regulatory texts II. Commentary 1. Member State discretion to require branch (Art 39(1) MiFID) 2. Prior authorization of branch (Art 39(2) MiFID) 3. Application to branch Member State (Art 39(3) MiFID) Article 40 Obligation to provide information I. General features 1. Purpose 2. Recitals 3. Implementing acts 4. Other regulatory texts II. Commentary Application for branch set-up (Art 40 MiFID) Article 41 Granting of the authorisation I. General features 1. Purpose 2. Recitals 3. Implementing acts 4. Other regulatory texts II. Commentary 1. Conditions of authorization, six months review period (Art 41(1) MiFID) 2. Operating conditions for branch (Art 41(2) MiFID) 3. Maximum and minimum harmonization, anti-discrimantion ban (Art 41(2) MiFID) Article 42 Provision of services at the exclusive initiative of the client I. General features 1. Purpose 2. Recitals 3. Implementing acts 4. Other regulatory texts II. Commentary 1. Passive freedom to provide services 2. Obligation to offer new categories through branch Section 2 Withdrawal of authorisations Article 43 Withdrawal of authorisations I. General features 1. Purpose 2. Recitals 3. Implementing acts 4. Other regulatory texts II. Overview Title III Regulated Markets Christoph Kumpan and Finn Schmidt Article 44 Authorisation and applicable law I. General features 1. Purpose 2. Background 3. Context 4. Legislative history 5. Recitals II. Commentary 1. Authorisation as a regulated market (Art 44(1) MiFID II) 2. Supervision by the competent authority (Art 44(2) MiFID II) 3. Compliance obligation (Art 44(3) MiFID II) 4. Applicable law (Art 44(4) MiFID II) 5. Withdrawal (Arts 44(5) and (6) MiFID II) Article 45 Requirements for the management body of a market operator I. General features 1. Purpose 2. Context 3. Legislative history 4. Recitals; level 3 measures II. Commentary 1. General requirements for the management body of a market operator (Arts 45(1), (2), (3) MiFID II) 2. Nomination committee (Art 45(4) MiFID II) 3. Implementation, monitoring and assessment of governance arrangements (Art 45(6) MiFID II) 4. Refusing authorisation (Art 45(7) MiFID II) 5. Notification (Art 45(8) MiFID II) Article 46 Requirements relating to persons exercising significant influence over the management of the regulated market I. General features 1. Purpose 2. Legislative history II. Commentary Article 47 Organisational requirements I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 measures II. Commentary Article 48 Systems resilience, circuit breakers and electronic trading I. General features 1. Purpose 2. Recitals; level 2 and 3 measures II. System resilience (Art 48(1) MiFID II) 1. General governance and compliance 2. Compliance function 3. Staff 4. Outsourcing 5. Assessments (Art 48(1) MiFID II) 6. Testing 7. Capacity of a trading venue 8. Monitoring 9. Self-assessments and periodic review (Arts 2 and 14 of the Commission Delegated Regulation (EU) 2017/584) 10. Business continuity arrangements 11. Security and limits to access III. Written agreements and schemes (Arts 48(2) and (3) MiFID II) 1. Written agreements (Art 48(2)(a) MiFID II) 2. Schemes (Art 48(2)(b) MiFID II) IV. Arrangements for rejecting orders (Art 48(4) MiFID II) V. Trading halts (Art 48(5) MiFID II) 1. Mechanisms to manage volatility 2. Material market in terms of liquidity VI. Testing of algorithms (Art 48(6) MiFID II) 1. Conformance testing (Art 48(6) MiFID II) 2. Algorithm testing and avoiding disorderly trading conditions (Art 48(6) MiFID II) 3. Calculating the ratio of unexecuted orders to transactions VII. Disorderly trading conditions (Arts 48(4), (5), (6) MiFID II) VIII. Pre- and post-trade controls (Arts 48(4), (6) MiFID II) IX. Permitting electronic access services (Art 48(7) MiFID II) 1. Permitting electronic access 2. Permitting sponsored access X. Co-location (Art 48(8) MiFID II) XI. Fee structures (Art 48(9) MiFID II) XII. Identifying algorithmic trading (Art 48(10) MiFID II) XIII. Access to order book data (Art 48(11) MiFID II) Article 49 Tick sizes I. General features 1. Purpose 2. Recitals; level 2 and 3 measures II. Commentary 1. The tick size regime (Arts 49(1) and (2) MiFID II) 2. Tick size for shares and depositary receipts 3. Tick size for exchange-traded funds Article 50 Synchronisation of business clocks I. General features 1. Purpose 2. Recitals; level 2 and 3 measures II. Commentary Article 51 Admission of financial instruments to trading I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 measures II. Commentary 1. Rules for admission of financial instruments (Art 51(1) MiFID II) 2. Rules applicable to units or shares of collective investments (Art 51(2) MiFID II) 3. Rules applicable to emission allowances (Art 6 of the Commission Delegated Regulation (EU) 2017/568) 4. Rules applicable to derivatives (Art 51(2) MiFID II) 5. Additional obligations (Arts 51(3) and (5) MiFID II) Article 52 Suspension and removal of financial instruments from trading on a regulated market I. General features 1. Purpose 2. Legislative history 3. Context 4. Recitals; level 2 measures II. Commentary Article 53 Access to a regulated market I. General features 1. Purpose 2. Legislative history 3. Recitals; level 3 measures II. Commentary 1. Access to a regulated market (Arts 53(1) and (2) MiFID II) 2. Admissible members and participants (Art 53(3) MiFID II) 3. Obligations pursuant to Arts 24, 25, 27 and 28 (Art 53(4) MiFID II) 4. Direct or remote participation (Art 53(5) MiFID II) 5. Regulated markets from other Member States (Art 53(6) MiFID II) 6. List of members and participants managed by a market operator (Art 53(7) MiFID II) Article 54 Monitoring of compliance with the rules of the regulated market and with other legal obligations I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 measures II. Commentary Article 55 Provisions regarding CCP and clearing and settlement arrangements I. General features 1. Purpose 2. Legislative history 3. Recitals II. Commentary Article 56 List of regulated markets I. General features 1. Purpose 2. Legislative history II. Commentary Title IV Position limits and position management controls in commodity derivatives and reporting Matthias LehmannPosition limits Article 57 Position limits and position management controls in commodity derivatives I. General features 1. Purpose 2. History 3. Economic background 4. Comparison to the US 5. Context 6. Recitals, level 2 and 3 measures II. Commentary 1. Material scope 2. Personal scope 3. Explaining “Position limit” 4. Triggers 5. Competent authority and procedure for setting position limits 6. Position management controls 7. Non-discrimination and transparency Article 58 Position reporting by categories of position holders I. General features 1. Purpose 2. History 3. Context 4. Recitals, level 2 and 3 measures II. Commentary 1. Scope 2. Reporting obligations of trading venues 3. Reporting obligations of traders Title V Data reporting services Matthias Lehmann Section 1 Authorisation procedures for data reporting services providers Article 59 Requirement for authorisation Article 60 Scope of authorisation Article 61 Procedures for granting and refusing requests for authorisation Article 62 Withdrawal of authorisations Article 63 Requirements for the management body of a data reporting services provider I. General features 1. Purpose 2. Context 3. History 4. Comparison to the US 5. Recitals, level 2 and 3 measures II. Commentary 1. Notion of “data reporting services” and scope 2. Authorisation requirement 3. Public register Section 2 Conditions for APAs Article 64 Organisational requirements Section 3 Conditions for CTPs Article 65 Organisational requirements Section 4 Conditions for ARMs Article 66 Organisational requirements I. General features 1. Purpose, history and context 2. Recitals; level 2 and 3 measures II. Commentary 1. Content, scope and format of the data 2. Real time publication to customers 3. Pricing 4. Free but delayed information of the public 5. Fast, non-discriminatory and easy access 6. Conflicts of interest and systems for security and accurateness Title VI Competent authorities Chapter I Designation, powers and redress procedures Jörn Axel Kämmerer Article 67 Designation of competent authorities Article 68 Cooperation between authorities in the same Member State Article 69 Supervisory powers I. General features 1. Purpose 2. Legislative history II. Commentary 1. Article 69(2) subpara 1 (a),(b),(d), and (j) (the power to require/demand information) 2. Article 69(2) subpara 1 (d) (ceasing of data records) 3. Article 69(2) subpara 1 (m) (suspension of trading in a financial instrument) 4. Article 69(2) subpara 1 (f) (temporary prohibition of professional activity) 5. Article 69(2) subpara 2 Article 70 Sanctions for infringements I. General features 1. Purpose 2. Legislative history II. Commentary 1. Article 70(1) 2. The minimum scope: Article 70(3) to (5) 3. The minimum toolkit: Article 70(6) Article 71 Publication of decisions I. General features 1. Purpose 2. Legislative history 3. Level 2 and 3 measures II. Commentary Article 72 Exercise of supervisory powers and powers to impose sanctions I. General features, purpose II. Commentary Article 73 Reporting of infringements I. General features 1. Purpose 2. Background 3. Context 4. Level 2 and 3 measures II. Commentary Article 74 Right of appeal I. General features 1. Purpose 2. Context II. Commentary Article 75 Extra-judicial mechanism for consumers complaints I. General features 1. Purpose 2. Context II. Commentary Article 76 Professional secrecy Article 77 Relations with auditors Article 78 Data protection Chapter II Cooperation between the competent authorities of the Member States and with ESMA Article 79 Obligation to cooperate Article 80 Cooperation between competent authorities in supervisory activities, for on-site verifications or investigations Article 81 Exchange of information Article 82 Binding mediation Article 83 Refusal to cooperate Article 84 Consultation prior to authorisation Article 85 Powers for host Member States Article 86 Precautionary measures to be taken by host Member States Article 87 Cooperation and exchange of information with ESMA I. General features Jörn Axel Kämmerer 1. Purpose 2. Context 3. Level 2 and 3 measures II. Commentary Chapter III Cooperation with third countries Article 88 Exchange of information with third countries Markets in Financial Instruments Regulation (MiFIR) Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments (OJ L 173, 12.6.2014, p. 84-148) Foreword: The new transparency regime under MiFIR I. Transparency under MiFID I II. Dark pool trading III. The MiFIR transparency regime Title I Subject matter, scope and definitions Article 1 Subject matter and scope I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Subject matter and scope (Arts 1(1) to 1(5) MiFIR) 2. Exemptions (Arts 1(5 a) to 1(7) MiFIR) Article 2 Definitions I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary Title II Transparency for trading venues Chapter I Transparency for equity instruments Article 3 Pre-trade transparency requirements for trading venues in respect of shares, depositary receipts, ETFs, certificates and other similar financial instruments I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Pre-trade transparency for equity(-like) instruments, Art 3(1) MiFIR 2. Concept of “TOTV” 3. Calibration of trading systems (Art 3(2) MiFIR) 4. Access to data publication arrangements (Art 3(3) MiFIR) Article 4 Waivers for equity instruments I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Reference price waiver (Art 4(1)(a), (2) MiFIR) 2. Negotiated trade waiver (Art 4(1)(b), (3) MiFIR) 3. Large-in-scale waiver (Art 4(1)(c) MiFIR) 4. Order management facility waiver (Art 4(1)(d) MiFIR) 5. Regulatory requirements related to granting and withdrawing waiver (Arts 4(4) und (5) MiFIR) 6. Transitional rules (Art 4(7) MiFIR) Article 5 Volume Cap Mechanism I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Volume cap mechanism (Art 5(1) MiFIR) 2. Exceeding the 4% and 8% limits (Arts 5(2) and (3) MiFIR) 3. Publication referring to aggregate EU trading (Arts 5(4), (5) and (6) MiFIR) 4. Obligation to establish systems/procedures (Art 5(7) MiFIR) 5. Impact on dark pool trading Article 6 Post-trade transparency requirements for trading venues in respect of shares, depositary receipts, ETFs, certificates and other similar financial instruments I. General features 1. Purpose 2. Legislative history 3. Recitals; Level 2 and level 3 measures II. Commentary Article 7 Authorisation of deferred publication I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary Chapter II Transparency for non-equity instruments Article 8 Pre-trade transparency requirements for trading venues in respect of bonds, structured finance products, emission allowances and derivatives I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Pre-trade transparency obligations with respect to non-equity instruments (Art 8(1) MiFIR) 2. Information requirements, trading system calibration (Art 8(2) MiFIR and Art 2 of the Commission Delegated Regulation (EU) 2017/583) 3. Waived pre-trade transparency (Art 8(4) MiFIR) Article 9 Waivers for non-equity instruments I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Large-in-scale waiver (Art 9(1)(a) MiFIR) 2. Order management facility waiver (Art 9(1)(a) MiFIR) 3. Request-for-quote systems/voice trading systems waiver (Art 9(1)(b) MiFIR) 4. Derivatives which are not subject to a trading obligation/financial instruments without a liquid market (Art 9(1)(c) MiFIR) 5. Exchange for physical waiver (Art 9(1)(d) MiFIR) 6. Package order waiver (Art 9(1)(e) MiFIR) 7. Notification of ESMA/authorisation of a waiver (Art 9(2) MiFIR) 8. Withdrawal (Art 9(3) MiFIR) 9. Temporary suspension (Art 9(4) MiFIR) Article 10 Post-trade transparency requirements for trading venues in respect of bonds, structured finance products, emission allowances and derivatives I. General features 1. Purpose 2. Recitals; level 2 and level 3 measures II. Commentary Article 11 Authorisation of deferred publication I. General features 1. Purpose 2. Recitals; level 2 and 3 measures II. Commentary 1. Authorisation of deferred publication (Art 11(1) MiFIR) 2. Temporary suspension (Art 11(2) MiFIR) 3. Modification of deferred publication (Art 11(3) MiFIR) Chapter III Obligation to offer trade data on a separate and reasonable commercial basis Article 12 Obligation to make pre-trade and post-trade data available separately I. General features 1. Purpose 2. Recitals; level 2 measures II. Commentary Article 13 Obligation to make pre-trade and post-trade data available on a reasonable commercial basis I. General features 1. Purpose 2. Level 2 and 3 measures II. Commentary Title III Transparency for systematic internalisers and investment firms trading OTC Transparency for trading OTC Article 14 Obligation for systematic internalisers to make public firm quotes in respect of shares, depositary receipts, ETFs, certificates and other similar financial instruments I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. Disclosure requirements for firm quotes (Art 14(1) MiFIR) 2. Standard market size (Art 14(2) MiFIR) 3. Defining quote size and minimum quote size (Art 14(3) MiFIR) 4. Calculation of market size (Art 14(4) and (5) MiFIR) 5. Annual class determination (Art 14(6) MiFIR) Article 15 Execution of client orders I. General features 1. Purpose 2. Legislative history 3. Recitals; level 2 and 3 measures II. Commentary 1. General obligations for systematic internalisers (Art 15(1) MiFIR) 2. Disclosure (Art 15(1) MiFIR) 3. Non-discriminatory access, reasonable commercial basis 4. Execution of quotes (Arts 15(2), Der Band analysiert und erläutert die EU-Rechtsvorschriften für Finanzdienstleistungen. Damit liegt für Rechtsanwälte in internationalen Kanzleien, die Finanzwirtschaft, Regulierungsbehörden und Wissenschaftler ein Referenzwerk für ein tiefgreifendes Verständnis aller relevanten unionsrechtlichen Finanzdienstleistungsregelungen vor. Es dient als Nachschlagewerk, das sowohl komplexe Themen leicht verständlich und übersichtlich darstellt, als auch intensive Analysen schwieriger rechtlicher Fragen bietet. Renommierte Experten erklären, Artikel für Artikel, die wichtigen europäischen Richtlinien und Vorschriften für Finanzdienstleistungen. An vielen Beispielen wird dabei die außerordentliche Bedeutung für die Praxis deutlich. Das Buch untersucht folgende Bereiche: Wertpapierdienstleistungen Marktverhalten Markttransparenz und Informationen Geldanlagen Abrechnungsverkehr Zahlungsdienste Für jeden Fachbereich werden die wichtigsten Richtlinien und Vorschriften besprochen, etwa: MiFID II und MiFIR MAD und MAR Prospekt-Richtlinie PRIIP-VO Transparenz-RL VO über Leerverkäufe Rating Agentur-Verordnung OGAW-Richtlinie und AIFMD EMIR Risikokapitalfonds-RL RL über Finanzsicherheiten RL über die Wirksamkeit von Abrechnungen SEPA-Verordnung.

Der Band analysiert und erläutert die EU-Rechtsvorschriften für Finanzdienstleistungen. Damit liegt für Rechtsanwälte in internationalen Kanzleien, die Finanzwirtschaft, Regulierungsbehörden und Wissenschaftler ein Referenzwerk für ein tiefgreifendes Verständnis aller relevanten unionsrechtlichen Finanzdienstleistungsregelungen vor. Es dient als Nachschlagewerk, das sowohl komplexe Themen leicht verständlich und übersichtlich darstellt, als auch intensive Analysen schwieriger rechtlicher Fragen bietet.Renommierte Experten erklären, Artikel für Artikel, die wichtigen europäischen Richtlinien und Vorschriften für Finanzdienstleistungen. An vielen Beispielen wird dabei die außerordentliche Bedeutung für die Praxis deutlich.Das Buch untersucht folgende Bereiche: WertpapierdienstleistungenMarktverhaltenMarkttransparenz und InformationenGeldanlagenAbrechnungsverkehrZahlungsdiensteFür jeden Fachbereich werden die wichtigsten Richtlinien und Vorschriften besprochen, etwa: MiFID II und MiFIRMAD und MARProspekt-RichtliniePRIIP-VOTransparenz-RLVO über LeerverkäufeRating Agentur-VerordnungOGAW-Richtlinie und AIFMDEMIRRisikokapitalfonds-RLRL über FinanzsicherheitenRL über die Wirksamkeit von AbrechnungenSEPA-Verordnung.

Présentation de l'éditeur : "This volume analyses and explains EU legislation governing financial services. It is for legal practitioners in international law firms, the financial industry, regulators, and academics needing an in-depth understanding of financial services regulations. It is intended to serve as a handy reference book, providing both easy to understand overviews of complex topics and insightful analyses of difficult legal issues. Experts renowned in their fields explain, article-by-article, the important EU directives and regulations governing financial services. Examples illustrate how important provisions apply in practice."