EUROPEAN RIGHTS FOR REGULATED MARKETS REGULATIONS

SUBSIDIARY LEGISLATION 345.11

EUROPEAN RIGHTS FOR REGULATED MARKETS

REGULATIONS

1st November, 2007

LEGAL NOTICE 330 of 2007, as amended by Legal Notice 175 of 2012

and 388 of 2017 .

(1) The title of these regulations is the European Rights for

Regulated Markets Regulations.

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

4(1),(55)(b) and (56), Article 53(6), Article 79(2) and Articles 86(3)

and (4) of MiFID, as herein defined, and shall be interpreted and

applied accordingly. The purpose of the amendments introduced by

Legal Notice 175 of 2012 is 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).

In these regulations, unless the context otherwise requires -

"Act" means the Financial Markets Act;

"competent authority" means the Malta Financial Services

Authority appointed under article 2 of the Act;

"ESMA" means the European Securities and Markets Authority

established by Regulation (EU) No 1095/2010 of the European

Parliament and of the Council of 24 November 2010;

"European regulated market" means a regulated market as defined

in Article 4(1)(21) of MiFID authorised by its European regulatory

authority within the meaning of Article 44 of MiFID;

"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

E E A St a t e i n w h i c h a M a l t e s e r e g u l a t e d m a r k e t p r o v i d e s

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;

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

and of the Cou ncil of 15 May 201 4 o n m ar kets in finan cial

instruments, as amended from time to time, and includes any

implementing measures that have been or may be issued thereunder.

(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

subregulation (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

right in another Member State or EEA State.

(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 subregulation (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

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

m ar kets, the co mpeten t auth ority sh all, after inf orm ing 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 Commission of the European Union and ESMA shall be informed

of such measures without delay. In addition, the competent authority

may refer the matter to ESMA.

(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 Part VI of the Act shall apply mutatis mutandis.

Part IV

Cooperation between the competent authority and European

regulatory authorities

Where the operations of a European regulated market that

has established arrangements in Malta have become of substantial

importance for the functioning of the securities markets and the

protection of the investors in Malta, the competent authority shall

e s tab l is h p r op o r ti o n a te co op e r a tio n a rr a ng e m e nt s wit h th e

European regulatory authority of the home Member State or EEA

State of the European regulated market.

Part V

Administrative Penalties, other Administrative Measures and

Appeals

(1)Where a person falling within the scope of these

regulations 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 Financial Markets Act

(MiFID and MiFIR Administr ative Pen alties, 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 Part VI of the Act

shall apply mutatis mutandis.