Trading Facilities (Amendment) Regulations, 2017

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 19,925, 22 ta’ Diċembru, 2017

Taqsima B

L.N. 399 of 2017

Investment Services Act

(Cap. 370)

European Passport Rights for Persons Operating Multilateral

Trading Facilities (Amendment) Regulations, 2017

IN EXERCISE of the powers conferred by article 12 of the

Investment Services Act, the Minister responsible for the regulation of

financial services, acting on the advice of the Malta Financial Services

Authority, has made the following regulations:-

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

Rights for Persons Operating Multilateral Trading Facilities commencement.

(Amendment) Regulations, 2017 and these regulations shall be read

and construed as one with the European Passport Rights for Persons S.L. 370.13.

Operating Multilateral Trading Facilities Regulations, hereinafter

referred to as "the principal regulations".

(2)

These regulations shall come into force on the 3rd January

2018.

The title of the principal regulations shall be substituted by Substitutes the

title of the

the following

principal

regulations.

"E UROPEAN P ASSPORT R IGHTS FOR P ERSONS O PERATING

M ULTILATERAL T RADING F ACILITIES OR O RGANIZED T RADING

F ACILITIES R EGULATIONS ".

Regulation 1 of the principal regulations shall be Substitutes

regulation 1 of

substituted by the following

the principal

regulations.

"1. (1) The title is the European Passport

Rights for Persons Operating Multilateral Trading

Facilities or Organised Trading Facilities Regulations.

(2) The objective is to implement the

relevant provisions of Articles 34(6) and (7),

Article 79(2) and Articles 86(3) and (4) of MiFID

as herein defined, as well as to transpose, in part,

Article 6(27)(c) of Directive 2010/78/EU of the

European Parliament and of the Council of 24

November 2010 amending Directives 98/26/EC,

2002/87/EC, 2003/6/EC, 2003/41/EC, 2003/71/

EC, 2004/39/EC, 2004/109/EC, 2005/60/EC,

2006/48/EC, 2006/49/EC and 2009/65/EC in

respect of the powers of the European

Supervisory Authority (European Banking

Authority), the European Supervisory Authority

(European Insurance and Occupational Pensions

Authority) and the European Supervisory

Authority (European Securities and Markets

Authority), and the regulations shall be

interpreted and applied accordingly.".

Regulation 2 of the principal regulations shall be amended

as follows

(a) for the definition "competent authority", there shall

be substituted the following

" "competent authority" means the Malta Financial

Services Authority established by the Malta Financial

Services Authority Act;";

(b) in the definition "European Right", immediately after

the words, "multilateral trading facility", there shall be added the

words, "or an organised trading facility";

(c) in the definition "Home Member State or EEA State",

immediately after the words, "multilateral trading facility", there

shall be added the words, "or organised trading facility";

(d) the definition "MIFID Directive" shall be substituted

by the following

" "MiFID" means Directive 2014/65/EU of the

European Parliament and of the Council of 15 May 2014 on

markets in financial instruments and amending Directive

2002/92/EC and Directive 2011/61/EU, as amended from

time to time, and includes any implementing measures that

have been or may be issued thereunder;";

(e)

immediately

after

the

definition

"MiFID",

as

amended, there shall be added the following new definition

" "multilateral system" means any system or facility

in which multiple third-party buying and selling trading

interests in financial instruments are able to interact in the

system;";

(f) for the definition "Multilateral Trading Facility" there

shall be substituted the following

" "multilateral trading facility" or "MTF" means a

multilateral system, operated by an investment services

licence holder or a market operator, which brings together

multiple third-party buying and selling interests in financial

instruments – in the system and in accordance with non-

discretionary rules – in a way that results in a contract in

accordance with Title II of MiFID;"; and

(g) immediately after the definition "multilateral trading

facility", as amended, there shall be added the following new

definition

" "organised trading facility" or "OTF" means a

multilateral system which is not a regulated market or an

MTF and in which multiple third-party buying and selling

interests in bonds, structured finance products, emission

allowances or derivatives are able to interact in the system

in a way that results in a contract in accordance with Title II

of MiFID;".

The Title of Part I of the principal regulations shall be Substitutes the

Title of Part I of

substituted by the following

the principal

regulations.

"Part I – Exercise of European Passport Rights by Persons

operating a Multilateral Trading Facility or an Organised Trading

Facility established in a Member State or EEA State".

Regulation 3 of the principal regulations shall be amended Amends

regulation 3 of

as follows

the principal

regulations.

(a) in the marginal note thereof, immediately after the

words, "Multilateral Trading Facility", there shall be inserted the

words, "or an Organised Trading Facility";

(b) in sub-regulation (1) thereof, immediately after the

words, "multilateral trading facility", there shall be inserted the

words, "or an organised trading facility";

(c)

in paragraph (a) of sub-regulation (2) thereof

(i) immediately after the words, "multilateral

trading facility", there shall be inserted the words, "or the

organised trading facility"; and

(ii) for the words, "and use of its facility in Malta;",

there shall be substituted the words, "and trading on those

markets by remote users, members or participants

established in Malta;"; and

(d) in paragraph (b) of sub-regulation (2) thereof, for the

words, "operating a Multilateral Trading Facility in terms of

Article 31(6) of the MiFID Directive", there shall be substituted

the words, "operating a multilateral trading facility or an

organised trading facility in terms of Article 34(7) of MiFID".

The Title of Part II of the principal regulations, shall be

substituted by the following

"Part II – Exercise of Passport Rights by Persons operating

a Multilateral Trading Facility or Organised Trading Facility

established in Malta".

Regulation 4 of the principal regulations shall be amended

as follows

(a) in regulation 4 thereof, there shall be added the

following marginal note: "Exercise of passport right by persons

operating a multilateral trading facility or an organised trading

facility established in Malta.";

(b)

in sub-regulation (1) thereof

(i) immediately after the words, "multilateral

trading facility", there shall be added the words, "or an

organised trading facility"; and

(ii) for the words, "and use of their systems by

remote users", there shall be substituted the words, "and

trading on those markets by remote users, members or

participants";

(c) in sub-regulation (2) thereof, immediately after the

words, "multilateral trading facility", there shall be added the

words, "or organised trading facility";

(d)

in sub-regulation (3) thereof, immediately after the

words, "multilateral trading facility", there shall be added the

words, "or an organised trading facility"; and

(e)

in sub-regulation (4) thereof

(i) for the words, "within a reasonable delay,",

there shall be substituted the words, "without undue

delay,"; and

(ii) immediately before the word "members", there

shall be added the word, "remote".

Regulation 5 of the principal regulations shall be amended Amends

regulation 5 of

as follows

the principal

regulations.

(a) in the marginal note thereof, immediately after the

words, "Multilateral Trading Facility.", there shall be added the

words, "or an Organised Trading Facility.";

(b)

in sub-regulation (1) thereof

(i) immediately after the words, "multilateral

trading facility", there shall be added the words, "or an

organised trading facility";

(ii) for the words, "the MiFID Directive,", there

shall be substituted the word, "MiFID,"; and

(iii) immediately after the words, "European

regulatory authority", there shall be added the words, "of

the home Member State or EEA State"; and

(c) in sub-regulation (2) thereof, for the words, "the

orderly function of markets,", there shall be substituted the

words, "the orderly functioning of markets,".

Immediately after regulation 5 of the principal regulations, Addition of Part

IV and Part V to

there shall be added the following new Part IV and Part V

the principal

regulations.

"Part IV - Cooperation between the Competent Authority and

European Regulatory Authorities

6. Where the operations of a trading venue

that has established arrangements in Malta have

become of substantial importance for the functioning

of the securities markets and the protection of Maltese

investors, the European regulatory authority of the

home Member State or EEA State of the trading venue

and the competent authority shall establish

proportionate cooperation arrangements.

Part V - Administrative Penalties, other Administrative

Measures and Appeals

7. (1) Where a person falling within the

scope, fails to comply with any provisions of such

regulations or any rules issued thereunder further

implementing such regulations, the competent

authority may, by notice in writing and without

recourse to a court hearing, impose on such person an

administrative penalty and other administrative

measures in accordance with the provisions of the

Investment Services Act and Banking Act (MiFID and

MiFIR Administrative Penalties, Measures and

Investigatory Powers) Regulations, 2017.

(2) A right of appeal to the Financial Services

Tribunal shall lie from the decisions which the

competent authority shall take under these regulations

and the provisions of article 19 of the Act shall apply

mutatis mutandis.".

€0.27