European Commission Publishes Commission Delegated Regulation Amending Registration Conditions for SME Growth Markets
06/21/2019An amending Commission Delegated Regulation to the existing Commission Delegated Regulation (Regulation 2017/565) on requirements for participants in SME growth markets has been published in the Official Journal of the European Union. Regulation 2017/565 supplements related provisions under the Markets in Financial Instruments Directive, which establishes "SME growth markets" as a new type of trading venue for small and medium sized enterprises.
The amending Delegated Regulation revisions mean that:
- SME issuers that do not have publicly traded shares will be classified as SMEs under MiFID II if the nominal value of their debt issuances listed on all EU trading venues over the previous year do not exceed €50m;
- A multilateral trading facility must satisfy an additional condition to qualify as an SME growth market, namely that the MTF must require issuers seeking initial admission of their shares to trading on that MTF to allocate a minimum amount of their shares available for trading on the MTF; and
- The operator of an MTF may exempt issuers that have no equity instruments traded on the MTF from the requirement (laid out under the Regulation 2017/565) to publish half-yearly financial reports.
The amending Delegated Regulation will apply directly across the EU from October 11, 2019.
View the amending Commission Delegated Regulation.
View Regulation 2017/565.
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