What changed, Regulation (EU) No 600/2014

+ (17) ‘liquid market’ means: (a) for the purposes of Articles 9, 11, and 18, a market for a financial instrument or a class of financial instruments, where there are ready and willing buyers and sellers on a continuous basis, and where the market is assessed in accordance with the following criteria,…
− (17) ‘liquid market’ means:
− 
− (a) for the purposes of Articles 9, 11, and 18, a market for a financial instrument or a class of financial instruments, where there are ready and willing buyers and sellers on a continuous basis, and where the market is assessed in accordance with the following criteria, taking into consideration t…
− 
− (i) the average frequency and size of transactions over a range of market conditions, having regard to the nature and life cycle of products within the class of financial instrument;
− 
− (ii) the number and type of market participants, including the ratio of market participants to traded financial instruments in a particular product;
− 
− (iii) the average size of spreads, where available;
− 
− (b) for the purposes of Articles 4, 5 and 14, a market for a financial instrument that is traded daily where the market is assessed according to the following criteria:
− 
− (i) the free float;
− (ii) the average daily number of transactions in those financial instruments;
− 
− (iii) the average daily turnover for those financial instruments;
− 
+ (45) ‘liquidity fragmentation’ means a situation in which: (a) participants in a trading venue are unable to conclude a transaction with one or more other participants in that venue because of the absence of clearing arrangements to which all participants have access; or (b) a clearing member or its…
− (45) ‘liquidity fragmentation’ means a situation in which:
− 
− (a) participants in a trading venue are unable to conclude a transaction with one or more other participants in that venue because of the absence of clearing arrangements to which all participants have access; or
− 
− (b) a clearing member or its clients would be forced to hold their positions in a financial instrument in more than one CCP which would limit the potential for the netting of financial exposures;
+ (49) ‘package order’ means an order priced as a single unit: (a) for the purpose of executing an exchange for physical; or (b) in two or more financial instruments for the purpose of executing a package transaction;
− (49) ‘package order’ means an order priced as a single unit:
+ (50) ‘package transaction’ means: (a) an exchange for physical; or (b) a transaction involving the execution of two or more component transactions in financial instruments and which fulfils all of the following criteria: (i) the transaction is executed between two or more counterparties; (ii) each c…
− (a) for the purpose of executing an exchange for physical; or
− (b) in two or more financial instruments for the purpose of executing a package transaction;
− 
− (50) ‘package transaction’ means:
− 
− (a) an exchange for physical; or
− 
− (b) a transaction involving the execution of two or more component transactions in financial instruments and which fulfils all of the following criteria:
− 
− (i) the transaction is executed between two or more counterparties;
− 
− (ii) each component of the transaction bears meaningful economic or financial risk related to all the other components;
− 
− (iii) the execution of each component is simultaneous and contingent upon the execution of all the other components.
− 
+ (b) systems that formalise negotiated transactions which are: (i) made within the current volume weighted spread reflected on the order book or the quotes of the market makers of the trading venue operating that system, subject to the conditions set out in Article 5; (ii) in an illiquid share, depos…
− (b) systems that formalise negotiated transactions which are:
− (i) made within the current volume weighted spread reflected on the order book or the quotes of the market makers of the trading venue operating that system, subject to the conditions set out in Article 5;
− 
− (ii) in an illiquid share, depositary receipt, ETF, certificate or other similar financial instrument that does not fall within the meaning of a liquid market, and are dealt within a percentage of a suitable reference price, being a percentage and a reference price set in advance by the system opera…
− 
− (iii) subject to conditions other than the current market price of that financial instrument;
− 
+ (e) package orders that meet one of the following conditions: (i) at least one of its components is a financial instrument for which there is not a liquid market, unless there is a liquid market for the package order as a whole; (ii) at least one of its components is large in scale compared with the…
− (e) package orders that meet one of the following conditions:
− 
− (i) at least one of its components is a financial instrument for which there is not a liquid market, unless there is a liquid market for the package order as a whole;
− 
− (ii) at least one of its components is large in scale compared with the normal market size, unless there is a liquid market for the package order as a whole;
− 
− (iii) all of its components are executed on a request-for-quote or voice system and are above the size specific to the instrument.
+ (d) the size specific to the financial instrument referred to in paragraph 1(b) and the definition of request-for-quote and voice trading systems for which pre-trade disclosure may be waived under paragraph 1; When determining the size specific to the financial instrument that would expose liquidity…
− (d) the size specific to the financial instrument referred to in paragraph 1(b) and the definition of request-for-quote and voice trading systems for which pre-trade disclosure may be waived under paragraph 1;
− When determining the size specific to the financial instrument that would expose liquidity providers to undue risk and takes into account whether the relevant market participants are retail or wholesale investors, in accordance with paragraph 1(b), ESMA shall take the following factors into account:
− 
− (i) whether, at such sizes, liquidity providers would be able to hedge their risks;
− 
− (ii) where a market in the financial instrument, or a class of financial instruments, consists in part of retail investors, the average value of transactions undertaken by those investors;
− 
+ ## TITLE III / **TRANSPARENCY FOR SYSTEMATIC INTERNALISERS AND INVESTMENT FIRMS TRADING OTC AND TICK SIZE REGIME FOR SYSTEMATIC INTERNALISERS**
− ## TITLE III / **TRANSPARENCY FOR SYSTEMATIC INTERNALISERS AND INVESTMENT FIRMS TRADING OTC**
+ (a) the criteria specifying when a quote is published on a regular and continuous basis and is easily accessible as referred to in Article 15(1) as well as the means by which investment firms may comply with their obligation to make public their quotes, which shall include the following possibilitie…
− (a) the criteria specifying when a quote is published on a regular and continuous basis and is easily accessible as referred to in Article 15(1) as well as the means by which investment firms may comply with their obligation to make public their quotes, which shall include the following possibilitie…
− 
− (i) through the facilities of any regulated market which has admitted the financial instrument in question to trading;
− 
− (ii) through an APA;
− (iii) through proprietary arrangements;
− 
+ 
+ ### Article 17a — Tick sizes
+ 
+ Systematic internalisers’ quotes, price improvements on those quotes and execution prices shall comply with tick sizes set in accordance with Article 49 of Directive 2014/65/EU.
+ 
+ Application of tick sizes shall not prevent systematic internalisers matching orders large in scale at mid‐point within the current bid and offer prices.
− 
− (c) the legal and supervisory framework of that third country provides for an effective equivalent system under which CCPs and trading venues authorised in foreign jurisdictions are permitted access on a fair reasonable and non discriminatory basis to:
+ (c) the legal and supervisory framework of that third country provides for an effective equivalent system under which CCPs and trading venues authorised in foreign jurisdictions are permitted access on a fair reasonable and non discriminatory basis to: (i) relevant price and data feeds and informati…
− (i) relevant price and data feeds and information of composition, methodology and pricing of benchmarks for the purposes of clearing and trading; and
− 
− (ii) licences,
+ (a) either (i) a financial instrument, structured deposit or activity or practice gives rise to significant investor protection concerns or poses a threat to the orderly functioning and integrity of financial markets or commodity markets or to the stability of whole or part of the financial system w…
− (a) either
− (i) a financial instrument, structured deposit or activity or practice gives rise to significant investor protection concerns or poses a threat to the orderly functioning and integrity of financial markets or commodity markets or to the stability of whole or part of the financial system within at le…
− 
− (ii) a derivative has a detrimental effect on the price formation mechanism in the underlying market;
− 
+ (1) in Article 5(2), the following subparagraph is added: ‘In the developing of the draft regulatory technical standards under this paragraph ESMA shall not prejudice the transitional provision relating to C6 energy derivative contracts as laid down in Article 95 of Directive 2014/65/EU (*1).
− (1) in Article 5(2), the following subparagraph is added:
+ (2) Article 7 is amended as follows: (a) paragraph 1 is replaced by the following: ‘1. A CCP that has been authorised to clear OTC derivative contracts shall accept clearing such contracts on a non-discriminatory and transparent basis, including as regards collateral requirements and fees related to…
− ‘In the developing of the draft regulatory technical standards under this paragraph ESMA shall not prejudice the transitional provision relating to C6 energy derivative contracts as laid down in Article 95 of Directive 2014/65/EU (*1).
+ (3) In Article 81(3), the following subparagraph is added: ‘A trade repository shall transmit data to competent authorities in accordance with the requirements under Article 26 of Regulation (EU) No 600/2014 (*2) ’.
− (2) Article 7 is amended as follows:
− 
− (a) paragraph 1 is replaced by the following:
− 
− ‘1. A CCP that has been authorised to clear OTC derivative contracts shall accept clearing such contracts on a non-discriminatory and transparent basis, including as regards collateral requirements and fees related to access, regardless of the trading venue. This in particular shall ensure that a tr…
− 
− (a) collateral requirements and netting of economically equivalent contracts, where the inclusion of such contracts in the close-out and other netting procedures of a CCP based on the applicable insolvency law would not endanger the smooth and orderly functioning, the validity or enforceability of s…
− 
− (b) cross-margining with correlated contracts cleared by the same CCP under a risk model that complies with Article 41.
− 
− A CCP may require that a trading venue comply with the operational and technical requirements established by the CCP, including the risk-management requirements.’;
− 
− (b) the following paragraph is added:
− 
− ‘6. The conditions laid down in paragraph 1 regarding non-discriminatory treatment in terms of how contracts traded on that trading venue are treated in terms of collateral requirements and netting of economically equivalent contracts and cross-margining with correlated contracts cleared by the same…
− 
− (3) In Article 81(3), the following subparagraph is added:
− 
− ‘A trade repository shall transmit data to competent authorities in accordance with the requirements under Article 26 of Regulation (EU) No 600/2014 (*2) ’.