Directive 2024/790 - Amendment of Directive 2014/65/EU on markets in financial instruments - Main contents
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Directive (EU) 2024/790 of the European Parliament and of the Council of 28 February 2024 amending Directive 2014/65/EU on markets in financial instruments| Legal instrument | Directive |
|---|---|
| Number legal act | Directive 2024/790 |
| Original proposal | COM(2021)726  |
| CELEX number i | 32024L0790 |
| Document | 28-02-2024; Date of signature |
|---|---|
| Signature | 28-02-2024 |
| Effect | 28-03-2024; Entry into force Date pub. +20 See Art 3 |
| End of validity | 31-12-9999 |
| Transposition | 29-09-2025; See Art 2.1 |
Official Journal of the European Union |
EN Series L |
2024/790 |
8.3.2024 |
DIRECTIVE (EU) 2024/790 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 28 February 2024
amending Directive 2014/65/EU on markets in financial instruments
(Text with EEA relevance)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 53(1) thereof,
Having regard to the proposal from the European Commission,
After transmission of the draft legislative act to the national parliaments,
After consulting the European Central Bank,
Acting in accordance with the ordinary legislative procedure (1),
Whereas:
(1) |
In its communication of 24 September 2020 entitled ‘A Capital Markets Union for people and businesses – new action plan’ (‘CMU Action Plan’), the Commission announced its intention to table a legislative proposal to create a continuous electronic live data stream, which was meant to provide a comprehensive view of the prices and the volume of equity and equity-like financial instruments traded throughout the Union across trading venues (‘consolidated tape’). In its conclusions of 2 December 2020 on the Commission’s CMU Action Plan, the Council encouraged the Commission to stimulate more investment activity inside the Union by enhancing data availability and transparency by further assessing how to tackle the barriers to establishing a consolidated tape in the Union. |
(2) |
In its communication of 19 January 2021 entitled ‘The European economic and financial system: fostering openness, strength and resilience’, the Commission confirmed its intention to improve, simplify and further harmonise the securities markets transparency framework, as part of the review of Directive 2014/65/EU of the European Parliament and of the Council (2) and of Regulation (EU) No 600/2014 of the European Parliament and of the Council (3). As part of efforts to strengthen the international role of the euro, the Commission also announced that such a reform would include the design and implementation of a consolidated tape, in particular for corporate bond issuances, to increase secondary trading in euro-denominated debt instruments. |
(3) |
In parallel with the review of Directive 2014/65/EU, Regulation (EU) No 600/2014 is amended by Regulation (EU) 2024/791 of the European Parliament and of the Council (4), which removes the main obstacles that have prevented the emergence of a consolidated tape. That Regulation introduces mandatory contributions of data to the consolidated tape provider and enhances data quality by, inter alia, harmonising the synchronisation of business clocks. Furthermore, it introduces enhancements to the trading obligations and the prohibition of the practice of receiving payment for executing orders from certain clients on a particular execution venue or for forwarding orders of those clients to any third party for their execution on a particular execution venue (‘payment for order flow’). Since Directive 2014/65/EU also contains provisions related to the consolidated tape and transparency, the amendments to Regulation (EU) No 600/2014 should be reflected in Directive 2014/65/EU. |
(4) |
Article 1(7) of Directive 2014/65/EU requires systems and facilities in which multiple third-party buying and selling trading interests in financial instruments are able to interact (‘multilateral systems’) to operate in accordance with the requirements concerning regulated markets, multilateral trading facilities (MTFs) or organised trading facilities (OTFs). However, market practice, as evidenced by the European Supervisory Authority (European Securities and Markets Authority) (ESMA) established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council (5) in its final report of 23 March 2021 on the... |
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