Recent EU regulations prompt Spain’s securities watchdog to launch new channel for infringements reporting
This new communication channel has been opened to meet obligations established in recent European regulations, in particular in Market Abuse Regulation No. 596/2014 and in MiFID II.
Less than a week has passed since the Markets in Financial Instruments Directive II (MiFID II) and the Markets in Financial Instruments Regulation (MIFIR) came into force, with European national regulators to comply with the newly introduced rules.
One example of such an effort was provided today by Spain’s National Securities Market Commission (CNMV) which has opened a communication channel for reporting possible infringements that guarantees the protection of the informer and the quality of the information received.
The aim of this tool, which is already available on the CNMV website, is to facilitate the reception of communications from people who have information about alleged infringements of rules of order and discipline of securities markets. This new communication channel has been introduced to meet obligations established in recent European regulations, in particular in Market Abuse Regulation No. 596/2014 and its implementing regulations, as well as in MiFID II.
If the informer prefers to reveal his or her identity, he or she must provide his or her name, occupation or position and the source of the information. These details will lend greater credibility to the communication. To use the channel you can send an email to [email protected] or call 900 373 362.
If one decides not to reveal his/her identity, he/she can use the anonymous information tool. Once a message has been sent, the application assigns a password so that the response can be consulted, if the informer so wishes, and to attach documentation related to it. This anonymous method only enables the informers to send a message, whereas it does not provide any additional information (IP address or passwords of any kind) and is designed to protect the anonymity of informers by encrypting messages.
The whistleblowing hotline is open 24 hours a day from Monday to Sunday.
The coming-into-force of the MiFID II and MiFIR was met with overall silence, apart from the announcements by the German and UK authorities for granting certain exceptions to several big trading venues. The Financial Conduct Authority said on January 3, 2018, that it had received applications under Article 54(2) from the trading venues ICE Futures Europe and the London Metal Exchange (LME). The FCA has decided to agree a transitional arrangement for those entities. Accordingly, with effect from January 3, 2018, ICE Futures Europe and LME are not required to consider open access requests made under Article 36 insofar as they relate to exchange-traded derivatives, until the expiry of the transitional period on July 3, 2020.
In France, the securities regulator AMF has reported a smooth start of the new reporting. At the close of the first day’s trading under MiFID II rules, investment firms had until midnight on January 4 to declare their trade reports to the AMF. In this context, the AMF’s new ICY platform received and processed over 1 million trades from around 50 firms (both investment firms and ARMs). The volumes processed, the AMF said, demonstrate the market participants’ overall good state of preparedness, even if further efforts must be made by some firms.
The European Securities and Markets Authority (ESMA) said last week that it, in cooperation with national competent authorities (NCAs) in the European Economic Area (EEA), has overseen the launch of the MiFID II and the Markets in Financial Instruments Regulation (MIFIR) on January 3, 2018. A key element in ensuring the new regime functions properly is ensuring the availability of data to market participants – firms and trading venues – and NCAs. This data has been made available on ESMA’s website and is set to be continuously updated.
