AI Summary of Article 51 Admission of financial instruments to trading
The proposal outlines essential requirements for Member States regarding the governance of regulated markets. It mandates clear and transparent admission rules for financial instruments, ensuring their tradeability is fair and efficient, and that issuer obligations under Union law are strictly monitored.
Additionally, it emphasises the need for regular compliance reviews and allows for transferable securities to trade across multiple regulated markets without issuer consent, thereby streamlining market access. ESMA is tasked with developing regulatory technical standards to clarify these obligations, reinforcing the framework of accountability and transparency in financial trading.
Article 51 Admission of financial instruments to trading
1. Member States shall require that regulated markets have clear and transparent rules regarding the admission of financial instruments to trading.
Those rules shall ensure that any financial instruments admitted to trading on a regulated market are capable of being traded in a fair, orderly and efficient manner and, in the case of transferable securities, are freely negotiable.
2. In the case of derivatives, the rules referred to in paragraph 1 shall ensure in particular that the design of the derivative contract allows for its orderly pricing as well as for the existence of effective settlement conditions.
3. In addition to the obligations set out in paragraphs 1 and 2, Member States shall require the regulated market to establish and maintain effective arrangements to verify that issuers of transferable securities that are admitted to trading on the regulated market comply with their obligations under Union law in respect of initial, ongoing or ad hoc disclosure obligations.
Member States shall ensure that the regulated market establishes arrangements which facilitate its members or participants in obtaining access to information which has been made public under Union law.