Commission Delegated Regulation amending Delegated Regulation (EU) 2017/565 as regards the specification of the definition of systematic internalisers for the purposes of Directive 2014/65/EU

EUROPEAN COMMISSION Brussels, 28.8.2017 C(2017) 5812 final COMMISSION DELEGATED REGULATION (EU) …/... of 28.8.2017 amending Delegated Regulation (EU) 2017/565 as regards the specification of the definition of systematic internalisers for the purposes of Directive 2014/65/EU (Text with EEA relevance) EXPLANATORY MEMORANDUM 1. CONTEXT OF THE DELEGATED ACT Directive 2014/65/EU ('MiFID II') of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU1 is due to become applicable on 3 January 2018 and, together with Regulation (EU) No 600/20142 (MiFIR), replace Directive 2004/39/EC3. MiFID II and MiFIR provide an updated harmonised legal framework governing the requirements applicable to investment firms, regulated markets, data reporting services providers and third country firms providing investment services or activities in the Union. MiFID II and MiFIR aim to enhance the efficiency, resilience and integrity of financial markets, notably by: 1. Achieving greater transparency: introduction of a preand post-trade transparency regime for non-equities and strengthening and broadening of the existing equities trade transparency regime; 2. Bringing more trading onto regulated venues: creation of a new category of platforms to trade derivatives and bonds - the Organised Trading Facilities - and of a trading obligation for shares on regulated venues as well as...