Trading Facilities Regulations, 2007

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 18,141, 30 ta’ Ottubru, 2007

L.N. 326 of 2007

INVESTMENT SERVICES ACT

(CAP. 370)

European Passport Rights for Persons Operating Multilateral

Trading Facilities Regulations, 2007

IN exercise of the powers conferred by article 12 of the Investment

Services Act, the Prime Minister and Minister of Finance, acting on the

advice of the Malta Financial Services Authority as the competent

authority for the purposes of the Act, has made the following regulations>

(1) The title of these regulations is the European Passport Title,

commencement and

Rights for Persons Operating Multilateral Trading Facilities Regulations, objective.

2007. (2) These regulations shall come into force on the 1st

November, 2007.

(3) The objective of these regulations is to implement the

relevant provisions of Articles 31 and 62 of the Directive, as herein

defined, and the regulations shall be interpreted and applied accordingly.

(1)

In these regulations, unless the context otherwise Interpretation.

requires>-

“the Act” means the Investment Services Act<

“competent authority” means the Malta Financial Services

Authority appointed under Article 2A of the Act<

“the Directive” means Directive 2004#39#EC of the European

Parliament and of the Council of 21 April 2004 on markets in

financial instruments amending Council Directives 85#611#EEC

and 93#6#EEC and Directive 2000#12#EC of the European

Parliament and of the Council and repealing Council Directive

93#22#EEC, as amended from time to time, and includes any

implementing measures that have been or may be issued thereunder<

“European right” means the entitlement of a person operating

a multilateral trading facility to provide appropriate arrangements

in the territory of a Member State or EEA State other than that in

which that person has been authorized to operate such facility, so

as to facilitate access to and use of their systems by remote users<

“Home Member State or EEA State” means the Member State

or EEA State in which the persons operating the multilateral trading

facility are so authorised<

“Host Member State or EEA State” means the Member State

or EEA State in which, a person authorised to operate a multilateral

trading facility in Malta, provides appropriate arrangements so as

to facilitate access to and use of its system by remote members

established in that same Member State or EEA State<

“Multilateral Trading Facility” has the same meaning as that

assigned to the term in Article 4(15) of the Directive.

(2) Words and expressions which are also used in the Act

shall have the same meaning as in the Act.

Part I – Exercise of European Passport Rights by Persons

operating a Multilateral Trading Facility established in a

Member State or EEA State

(1) A person who operates a multilateral trading facility in

any Member State or EEA state other than Malta and which is seeking

to provide appropriate arrangements in Malta in exercise of a European

right shall satisfy the conditions specified in sub-regulation (2) of this

regulation and shall be exempt from the provisions of article 3 of the

Act.

(2) The conditions for the purposes of this regulation are

that –

(a) the person operating the multilateral trading facility has

communicated to its European regulatory authority that it intends

to provide arrangements to facilitate access to and use of its facility

in Malta<

(b) the supervisory authority of the persons operating a

Multilateral Trading Facility in terms of Article 31(6) of the

Directive has, within one month of the receipt of the information

specified in paragraph (a) of this sub-regulation, notified the

competent authority of this information.

Part II – Exercise of Passport Rights by Persons operating a

Multilateral Trading Facility established in Malta

(1) Persons operating a multilateral trading facility Exercise of passport

rights by persons

established in Malta may exercise a European right to provide licensed in Malta to

appropriate arrangements to facilitate access to and use of their systems operate a

Multilateral Trading

by remote users in another Member State or in an EEA State subject to Facility.

the requirements of this regulation.

(2) A person operating a multilateral trading facility

established in Malta shall give the competent authority a notice of its

intention to exercise a European right wherein it shall communicate the

Member State or the EEA State in which it intends to provide such

arrangements.

(3) The competent authority shall communicate, within one

month, the information provided in terms of sub-regulation (2) of this

regulation to the European regulatory authority of the Member State or

EEA State in which the person operating a multilateral trading facility

established in Malta intends to provide such arrangements.

(4) The competent authority shall, on the request of the

European regulatory authority of the Member State or EEA State in

which the person operating a multilateral trading facility established in

Malta intends to provide such arrangements, and within a reasonable

delay, communicate the identity of the members or participants of the

multilateral trading facility established in Malta.

Part III – Contraventions by Persons operating a Multilateral

Trading Facility in Malta in exercise of a European Right

(1) Where the competent authority has clear and

demonstrable grounds for believing that a person, authorised to operate

a multilateral trading facility in any Member State or EEA state and

who is providing access to its systems in Malta in exercise of a European

right, is in breach of its obligations arising from the provisions adopted

pursuant to the Directive, it shall refer those findings to the European

regulatory authority.

(2) If, despite the measures taken by the European regulatory

authority or because such actions prove inadequate, the person providing

access to its systems in Malta in exercise of a European right, persists

in acting in a manner which is clearly prejudicial to the interests of

investors in Malta or the orderly function of markets, the competent

authority shall, after informing the European regulatory authority, take

all the appropriate measures needed in order to protect investors and

the proper functioning of the markets. This shall include the possibility

of preventing the person providing access to its systems in Malta, in

exercise of a European Right from making the said arrangements

available to remote members or participants established in Malta. The

European Commission shall be informed of such measures without

delay.

(3) Any measure adopted pursuant to this regulation shall

be communicated to the person concerned, in writing, together with

reasons justifying such measures and shall be subject to a right of appeal

to the Financial Services Tribunal and the provisions of article 19 of

the Act shall apply mutatis mutandis.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

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