European Rights for Regulated Markets Regulations, 2007

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

L.N. 330 of 2007

FINANCIAL MARKETS ACT

(CAP. 345)

European Rights for Regulated Markets Regulations, 2007

IN exercise of the powers conferred by article 3 of the Financial

Markets 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 Rights for Title,

commencement and

Regulated Markets Regulations, 2007.

objective.

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

November, 2007.

(3) The purpose of these regulations is to implement Articles

42 (6) and 62 (3) and (4) of the Directive, as herein defined, and shall

be interpreted and applied accordingly.

(1)

In these regulations, unless the context otherwise Interpretation.

requires>

“the Act” means the Financial Markets Act<

“competent authority” means the Malta Financial Services

Authority appointed under article 2 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 regulated market” means a regulated market as

defined in Article 4 (1) (14) of the Directive authorised by its

European regulatory authority within the meaning of Article 36 of

the Directive<

“European right” means the entitlement of a Maltese or a

European regulated market to provide appropriate arrangements

in a Member State or EEA State other than that in which it has

been authorised, so as to facilitate access to and trading on such a

market by remote members or participants established in the

territory of that other Member State or EEA State<

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

or EEA State in which the regulated market is registered or, if

under the law of that Member State or EEA State it has no registered

office, the Member State or EEA State in which the head office of

the regulated market is situated<

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

or EEA State in which a Maltese regulated market provides

appropriate arrangements so as to facilitate access to trading on its

system by remote members or participants established in that same

Member State or EEA State<

“Maltese regulated market” means a regulated market

authorised in terms of the Act that is entitled to carry on an activity

in exercise of a European right a Member State or EEA State other

than Malta.

(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 Right by European Regulated Markets

(1) A European regulated market may exercise a European

right in Malta.

(2) A European regulated market that intends to exercise a

European right in Malta shall be obliged to give the European regulatory

authority of its home Member State or EEA State a notice of its intention

to exercise a European right in Malta.

(3) The European regulatory authority shall communicate,

within one month, the information provided in terms of sub-regulations

(2) to the competent authority.

(4) The European regulatory authority shall, on the request

of the competent authority and within a reasonable time, communicate

the identity of the members or participants of the European regulated

market.

Part II

Exercise of European Rights by Maltese Regulated Markets

(1) A Maltese regulated market may exercise a European Exercise of

European rights by

right in another Member State or EEA State.

Maltese regulated

markets.

(2) A Maltese regulated market that intends to exercise a

European right in another Member State or EEA State shall be obliged

to give the competent authority a notice of its intention to exercise such

right wherein it shall indicate 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) to the

European regulatory authority of the host Member State or EEA State.

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

European regulatory authority of the host Member State or EEA State

and within a reasonable time, communicate the identity of the members

or participants of the Maltese regulated market.

Part III

Contraventions by Persons operating a Regulated Market in

Malta in exercise of a European Right

(1) Where the competent authority has clear and Contraventions.

demonstrable grounds for believing that a person, authorised to operate

a regulated market 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 regulated market 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 regulated market 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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