The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018

Made: 19th December 2018

Coming into force in accordance with regulation 1(2) and (3)

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PART 1 — General

Citation and commencement

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PART 2 — Amendment of secondary legislation: European Communities Act 1972

The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017

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The Data Reporting Services Regulations 2017

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PART 3 — Amendment of secondary legislation: European Union (Withdrawal) Act 2018

CHAPTER 1 — The Regulated Activities Order

Amendments to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

4

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CHAPTER 2 — The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017

The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017

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Introductory provisions

6

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Interpretation

7

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Exempt and third country investment firms

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Algorithmic trading

9

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Direct electronic access

10

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Acting as a general clearing member

11

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Synchronisation of business clocks

12

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Interpretation of Part 4

13

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Removal of persons from the management board

14

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Miscellaneous FCA functions

15

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Administration and Enforcement of Parts 3, 4 and 5

16

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CHAPTER 3 — The Data Reporting Services Regulations 2017

The Data Reporting Services Regulations 2017

17

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Introductory provisions

18

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Authorisation of data reporting services

19

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Temporary authorisation

20

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Operating requirements

21

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Administration and enforcement

22

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Miscellaneous

23

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PART 4 — Amendment of EU Regulations

CHAPTER 1 — Amendment of Markets in Financial Instruments Regulation

Markets in Financial Instruments Regulation

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Subject matter and scope

25

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Definitions

26

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Transparency for trading venues

27

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Transparency for systematic internalisers and investment firms trading OTC

28

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Transaction reporting

29

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Derivatives

30

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Non-discriminatory clearing access for financial instruments

31

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Supervisory measures on product intervention and positions

32

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Provision of services and performance of activities by third-country firms following an equivalence decision

33

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Delegated and implementing acts

34

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Final provisions

35

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Professional clients

36

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Transfer of Functions

37

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CHAPTER 2 — Commission Delegated Regulation 2017/565

Commission Regulation 2017/565

38

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Application, scope and definitions

39

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Systematic internalisers

40

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Algorithmic trading and electronic access

41

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Organisation requirements

42

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Conflicts of interest

43

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Investment research and marketing

44

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Underwriting and placing

45

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Information to clients

46

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Investment Advice

47

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Best execution

48

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Eligible counterparties

49

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Record-keeping

50

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SME growth market

51

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Operating obligations for trading venues

52

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Position reporting in commodity derivatives

53

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Data provision obligations for data reporting service providers

54

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Final provisions

55

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Annexes

56

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CHAPTER 3 — Commission Delegated Regulation 2017/567

Commission Delegated Regulation 2017/567

57

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Interpretation

58

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Determining liquid markets for equity instruments

59

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Data publication obligations for systematic internalisers

60

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Supervisory measures on product intervention and position management

61

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Signed

Craig Whittaker — Paul Maynard — Two Lord Commissioners of Her Majesty's Treasury — 2018-12-19

Explanatory note

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Footnotes

[^f00001]: S.I. 2012/1759.

[^f00002]: 1972 c.68. Section 2(2) was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c.51) and by section 3 of, and the Schedule to, the European Union (Amendment) Act 2008 (c.7). By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c.51), regulations may be made under section 2(2) of the European Communities Act 1972 to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting that Agreement signed at Brussels on 17th March 1993 (Cm 2183). Paragraph 1A was inserted into Schedule 2 by section 28 of the Legislative and Regulatory Reform Act 2006. The European Communities Act 1972 is repealed with effect from exit day by section 1 of the European Union (Withdrawal) Act 2018.

[^f00003]: 2018 c.16.

[^f00004]: S.I. 2017/701.

[^f00005]: S.I. 2017/699.

[^f00006]: S.I. 2001/544.

[^f00007]: Paragraph 6 was substituted (with the rest of Schedule 2) by S.I. 2006/3384, and further amended by S.I. 2017/488.

[^f00008]: Paragraph 7 was substituted (with the rest of Schedule 2) by S.I. 2006/3384, and further amended by S.I. 2017/488.

[^f00009]: Part 2 of Schedule 2 was substituted by S.I. 2006/3384 and then by S.I. 2017/488.

[^f00010]: 1871 c.xxi

[^f00011]: S.I. 2012/3038.

[^f00012]: S.I. 2017/701.

[^f00013]: S.I. 2001/544.

[^f00014]: 1979 c.34.

[^f00015]: 1985 No.1205 (N.I. 12)

[^f00016]: The definition of “significant volumes” was inserted by S.I. 2017/1255.

[^f00017]: 1871 c.xxi.

[^f00018]: S.I 2012/3038.

[^f00019]: S.I. 2001/995. Paragraphs 7BA and 7BB were inserted by S.I. 2017/701.

[^f00020]: S.I. 2017/699.

[^f00021]: OJ L 87. 31.3.2017, p.126.

[^f00022]: OJ L 87, 31.3.2017, p.1.

[^f00023]: OJ L173, 12.6.2014, p.349.

[^f00024]: OJ L176, 27.6.2013, p.338.

[^f00025]: 2018 c.16.

[^f00026]: OJ L173, 12.6.2014, p.349.

[^f00027]: S.I. 2001/995. Paragraph 9A was inserted by S.I. 2006/3386.

[^f00028]: S.I. 2017/699.

[^f00029]: 2006 c.46.

[^f00030]: S.I. 2017/699.

[^f00031]: S.I. 2001/544.

[^f00032]: 2000 c.8

[^f00033]: S.I. 2001/995.

[^f00034]: S.I. 2017/701.

[^f00035]: OJ L173, 12.6.2014, p.349.

[^f00036]: 2018 c.16.

[^f00037]: S.I. 2017/699.

[^f00038]: OJ L87, 31.3.2017, p.229.

[^f00039]: OJ L87, 31.3.2017, p.229.

[^f00040]: S.I. 2017/699.

[^f00041]: OJ L87, 31.3.2017.

[^f00042]: Schedule 3 is inserted to the Regulation by regulation 37 of these Regulations.

[^f00043]: OJ L390, 31.12.2004, p.38.

[^f00044]: S.I. 2017/692.

[^f00045]: S.I. 2001/995. Paragraphs 7C, 7D and 21A were inserted by S.I. 2006/3386.

[^f00046]: Section 410 was amended by section 16 of the Financial Services Act 2012 (c.21) and S.I. 2017/1064.

[^f00047]: The powers in this paragraph are transferred from Article 2(3) of the Markets in Financial Instruments Directive (“Directive 2014/65/EU”).

[^f00048]: The powers in paragraph 2(a) to (c) are transferred from Article 4(1)(2) of Directive 2014/65/EU.

[^f00049]: The powers in paragraph 2(d) are transferred from Article 4(2) of Directive 2014/65/EU.

[^f00050]: The powers in paragraph 3 are transferred from Article 13(1) of Directive 2014/65/EU.

[^f00051]: The powers in paragraph 4 are transferred from Article 16(12) of Directive 2014/65/EU.

[^f00052]: The powers in paragraph 5 are transferred from Article 23(4)(a) of Directive 2014/65/EU.

[^f00053]: The powers in paragraph 6 are transferred from Article 23(4)(b) of Directive 2014/65/EU.

[^f00054]: The powers in paragraph 7(1) are transferred from Article 24(13) (first subparagraph) of Directive 2014/65/EU.

[^f00055]: The powers in paragraph 7(2) are transferred from Article 24(13) (second subparagraph) of Directive 2014/65/EU.

[^f00056]: The powers in paragraph 7(3) are transferred from Article 24(14) of Directive 2014/65/EU.

[^f00057]: OJ L390, 31.12.2004, p.38.

[^f00058]: The powers in paragraph 8 are transferred from Article 25.4 of Directive 2014/65/EU.

[^f00059]: The powers in paragraph 9 are transferred from Article 25(8) of Directive 2014/65/EU.

[^f00060]: The powers in paragraph 10 are transferred from Article 27(9) of Directive 2014/65/EU.

[^f00061]: The powers in paragraph 11 are transferred from Article 28(3) of Directive 2014/65/EU.

[^f00062]: The powers in paragraph 12 are transferred from Article 30(5) of Directive 2014/65/EU.

[^f00063]: The powers in paragraph 13(a) are transferred from Article 31(4) of Directive 2014/65/EU.

[^f00064]: The powers in paragraph 13(b) are transferred from Article 54(4) of Directive 2014/65/EU.

[^f00065]: The powers in paragraph 14 are transferred from Article 33(8) of Directive 2014/65/EU.

[^f00066]: Sections 313CA and 313CB were inserted by S.I. 2017/701.

[^f00067]: Paragraph 7E was inserted by S.I. 2006/3386 and amended by S.I. 2017/701.The powers in paragraph 15 are transferred from Articles 32(4) and 52(4) of Directive 2014/65/EU.

[^f00068]: Paragraph 7BB was inserted by S.I.2017/701.

[^f00069]: The powers in paragraph 16 are transferred from Articles 58(6) of Directive 2014/65/EU.

[^f00070]: The powers in paragraph 17(a) are transferred from Article 64(7) of Directive 2014/65/EU.

[^f00071]: The powers in paragraph 17(b) are transferred from Article 65(7) of Directive 2014/65/EU.

[^f00072]: The powers in paragraph 18 are transferred from Article 79(8) of Directive 2014/65/EU.

[^f00073]: The powers in paragraph 19 are transferred from Article 2(4) of Directive 2014/65/EU.

[^f00074]: Paragraph 4C was inserted by S.I. 2017/701.

[^f00075]: The powers in paragraph 20 are transferred from Article 27(10) of Directive 2014/65/EU.

[^f00076]: The powers in paragraph 21 are transferred from Article 32(2) of Directive 2014/65/EU.

[^f00077]: The powers in paragraph 22 are transferred from Article 32(3) of Directive 2014/65/EU.

[^f00078]: The powers in paragraph 23 are transferred from Article 48(12) of Directive 2014/65/EU.

[^f00079]: Paragraph 3G was inserted by S.I. 2017/701.

[^f00080]: The powers in paragraph 24 are transferred from Article 49(3) of Directive 2014/65/EU.

[^f00081]: The powers in paragraph 25 are transferred from Article 49(4) of Directive 2014/65/EU.

[^f00082]: The powers in paragraph 26 are transferred from Article 50(2) of Directive 2014/65/EU.

[^f00083]: Paragraph 7A was inserted by S.I. 2006/3386 and amended by S.I. 2017/701. Paragraph 9ZB was inserted by S.I. 2017/701.

[^f00084]: The powers in paragraph 27 are transferred from Article 51(6)(a) of Directive 2014/65/EU.

[^f00085]: The powers in paragraph 28(a) are transferred from Article 51(6)(b) of Directive 2014/65/EU.

[^f00086]: The powers in paragraph 28(b) are transferred from Article 51(6)(c) of Directive 2014/65/EU.

[^f00087]: The powers in paragraph 29 are transferred from Article 52(2) of Directive 2014/65/EU.

[^f00088]: The powers in paragraph 30 are transferred from Article 52(3) of Directive 2014/65/EU.

[^f00089]: The powers in paragraph 31 are transferred from Article 57(3) of Directive 2014/65/EU.

[^f00090]: S.I. 2017/701.

[^f00091]: The powers in paragraph 32 are transferred from Article 57(12) of Directive 2014/65/EU.

[^f00092]: The powers in paragraph 33 are transferred from Article 58(5) of Directive 2014/65/EU.

[^f00093]: The powers in paragraph 34(a) are transferred from Article 61(4)(a) of Directive 2014/65/EU.

[^f00094]: The powers in paragraph 34(b) are transferred from Article 61(5) of Directive 2014/65/EU.

[^f00095]: The powers in paragraph 35 are transferred from Article 64(6) of Directive 2014/65/EU.

[^f00096]: The powers in paragraph 36 are transferred from Article 64(8) of Directive 2014/65/EU.

[^f00097]: The powers in paragraph 37 are transferred from Article 65(6) of Directive 2014/65/EU.

[^f00098]: The powers in paragraph 38 are transferred from Article 65(8) of Directive 2014/65/EU.

[^f00099]: The powers in paragraph 39 are transferred from Article 66(5) of Directive 2014/65/EU.

[^f00100]: The powers in paragraph 40 are transferred from Article 7(4) of Directive 2014/65/EU.

[^f00101]: The powers in paragraph 41 are transferred from Article 7(5) of Directive 2014/65/EU.

[^f00102]: The powers in paragraph 42 are transferred from Article 12(8) of Directive 2014/65/EU.

[^f00103]: Sections 187A to 187C were inserted by section 6 of the Financial Services Act 2012 (c.21).The powers in paragraph 43 are transferred from Article 12(9) of Directive 2014/65/EU.

[^f00104]: The powers in paragraph 44 are transferred from Article 17(7) of Directive 2014/65/EU.

[^f00105]: S.I. 2017/699.

[^f00106]: S.I. 2001/544. Part 1 of Schedule 2 has been amended by S.I. 2006/3384, 2017/488, and these Regulations.

[^f00107]: S.I. 2018/1149.

[^f00108]: S.I, 2017/701. The definition of “high-frequency algorithmic trading technique” was inserted by these regulations.

[^f00109]: S.I. 2015/542.

[^f00110]: S.I. 2001/995. Paragraph 4C was inserted by S.I. 2017/701.

[^f00111]: S.I. 2017/699.

[^f00112]: S.I. 2017/701. The definition of “SME growth market” is inserted by regulation 5(1)(t) of these Regulations.

[^f00113]: 2000 c.8. Sections 313CA to 313CC were inserted by S.I. 2017/701.

[^f00114]: S.I.2001/995. Paragraph 7E was inserted by S.I. 2006/3386.

[^f00115]: Paragraph 7BB was inserted by S.I. 2017/701.

[^f00116]: S.I. 2017/699.

[^f00117]: S.I. 2001/995. Paragraph 3B was inserted by S.I. 2017/701.

Editorial notes