1. ISD Regulatory classification ISD “Regulated market” (segment):
Insert 1:
ISD Regulatory classification
Organised markets:
matching orders of multiple buyers and sellers subject to non-discretionary rules etc.
Investment firms:
including transaction facilitators, automated order matching brokers/IDBs, dealer systems
Authorisation by nat. competent authority:
to provide specified core/non-core services
Alternative (non ISD) markets (segments)”
organised trading between for instruments not eligible for trading on “reg. Mkt” e.g.: non-publicly offered securities; publicly offered securities which do not meet disclosure and other req. for admission to trading on reg. Market; derivative instruments for which there is no “proper market”.
ISD “Regulated market” (segment):
Only following securities are eligible for admission to trading on reg. market: publicly offered securities which meet disclosure and other statutory requirements; derivatives based on them; derivatives based on rates indices, commodities for which there is “proper market”
Special requirements for
order-matching broker or dealing systems
Reporting of off-market trades :
Requirement for dealers/brokers to report or make public post-trade details of off-market transactions
Approval by national competent authority;
subject to compliance with any relevant national provisions;
no rights or obligations under ISD
Possible stepping up of user surveillance:
Possibility for authority to require implementation of arrangements for monitoring/surveillance of system users.
Authorised by nat. competent authority subject to: compliance with ISD principles for market operator and market
Notification to Commission & CESR:
right to verify whether market operator and rules of market comply with ISD requirements before incl. on list of “regulated markets”