SCHEDULE 2Amendments to the Financial Services and Markets Act 2000

42

1

Section 313D M1 (interpretation of Part 18A) is amended as follows.

2

The existing text becomes subsection (1).

3

In subsection (1)—

a

in the definition of “financial instrument” for “4.1.17” substitute “ 4.1.15 ”;

b

omit the definition of “multilateral trading facility”;

c

omit the definition of “regulated market”; and

d

in the appropriate places, insert—

“competent authority” has the meaning given in Article 4.1.26 (definitions) of the markets in financial instruments directive;

“derivative” means a derivative referred to in points (4) to (10) of Section C of Annex 1 to the markets in financial instruments directive;

“non-disclosure of inside information” means a failure to disclose inside information, as defined by Article 7 (inside information) of the market abuse regulation, in contravention of Article 17 (public disclosure of inside information) of that Regulation;

“market abuse” means a contravention of Article 14 (prohibition of insider dealing and of unlawful disclosure of inside information) or 15 (prohibition of market manipulation) of the market abuse regulation;

“systematic internaliser” has the meaning given in Article 4.1.20 of the markets in financial instruments directive;

“trading venue” has the meaning given in Article 4.1.24 of the markets in financial instruments directive.

4

After subsection (1) insert—

2

In this Part a trading venue or systematic internaliser falls under the FCA's jurisdiction if—

a

the United Kingdom is the home Member State (as defined by Article 4.1.55 of the markets in financial instruments directive) of—

i

in the case of a trading venue which is a regulated market (as defined by Article 4.1.21 of the directive), the regulated market;

ii

in the case of a trading venue which is a multilateral trading facility (as defined by Article 4.1.22 of the directive), the person operating the facility;

iii

in the case of a trading venue which is an organised trading facility (as defined by Article 4.1.23 of the directive), the person operating the facility; or

iv

in the case of a systematic internaliser, the systematic internaliser; or

b

in the case of a systematic internaliser does not fall within the FCA's jurisdiction by virtue of paragraph (a)—

i

it has established a branch (as defined by Article 4.1.30 of the directive) in the United Kingdom; and

ii

the FCA considers that it is necessary to impose a requirement on the systematic internaliser under section 313CA(2), 313CB(2), or 313CC(2) for the purposes of Article 32.2 or 52.2 F1... of the markets in financial instruments directive.