SCANNING 2

15 April 2014 and by the Council on 13 May 2014. Both the final texts of MiFID II and MiFIR were re- cently published on 12 June 2014. Certain elements of the Directive and Regulation need to be further specified in delegated acts to be adopted by the Commission. What’s in there? On 16 May 2014 the European Commission sent a request for technical advice to EBA. The advice requested from EBA concerns technical advice on product intervention by competent authorities as envisaged in MiFIR. In accordance with Articles 40(8), 41(8) and 42(7) of MiFIR, the Commission is empowered to adopt delegated acts specifying criteria and factors to be taken into account by ESMA, EBA and competent authorities in deter- mining when there is a significant investor protec- tion concern and threat to the orderly functioning and integrity of financial markets or commodity markets and to the stability of the whole or part of the financial system of the Union. As the product intervention powers framework of ESMA and EBA are identical and ESMA has already begun work on technical advice for the European Commission. EBA is encouraged by the European Commission to cooperate with ESMA. What’s next? The technical advice has to be submitted to the European Commission 6 months after the en- try into force of the Directive and the Regulation (which have been published in the Official Journal on 12 June 2014). The delegated acts must be published in the Of- ficial Journal before the entry into application of the Regulation and the Directive. This will be 30 months after the entry into force of MiFID II and MiFIR.

ESMA announced the creation of the Consultative Working Group for the Market

Data Reporting Working Group Background

The creation of the Consultative Working Group follows the call for expressions of interest in De- cember 2013. The group is set up in the context of reporting requirements resulting from MiFID II / MiFIR, EMIR and future MAR. What’s in there? On 16 May 2014, ESMA published the announce- ment on the creation of the Consultative Working Group for the Market Data Reporting Working Group (MDRWG). The MDRWG contributes to ESMA’s work on issues relating to reporting of transactions, positions, re- cord-keeping of orders and instrument reference data. The objectives of this group are to enhance the quality of the market data reported to EU Na- tional Authorities and Trade Repositories and to foster supervisory convergence among the nation- al authorities in its area of competence. What’s next? N/A

What’s in there? On 12 June 2014, the Regulation No 596/2014 on market abuse (Market Abuse Regulation) and Directive 2014/57/EU on criminal sanctions for market abuse (Market Abuse Directive) have been published in the EU Official Journal.

The major changes to the current regime are the following:

« Definition of EU minimum sanctions for market abuse; « Its scope to be extended to align fully with the revised MiFID regime, e.g. to cover: - Instruments which are traded on a MTF or OTF in at least one Member State, and not only a regulated market; - Market manipulation by the use of OTC instru- ments that can influence the prices of a finan- cial instrument traded on a regulated market, MTF or OTF; « Finally, the regulation envisages considering not only an act of abuse, but the intent to commit such an act, as abusive practice. What’s next? The Market Abuse Regulation shall enter into force on 2 July 2014 and will apply from 3 July 2016. Member States have until 3 July 2016 to trans- pose the Directive on criminal sanctions for mar- ket abuse into their national law. On 28 May 2014, the European Commission re- quested advice from ESMA on Regulation imple- menting acts. Eight months after entry into force of the Regulation ESMA shall provide the requested technical advice on the implementing acts.

THE ANNOUNCEMENT IS AVAILABLE HERE.

THE LETTER OF THE EUROPEAN COMMISSION IS AVAILABLE HERE.

European Commission

requested technical advice on delegated acts concerning MiFID II and MiFIR Background On 14 January 2014, the European Parliament and Council reached political agreement on a compro- mise text of MiFID II and MiFIR. This compromise text was adopted by the European Parliament on

YOU CAN FIND THE DIRECTIVE HERE.

YOU CAN FIND THE REGULATION HERE.

Scanning - June 2014 - page 5