Appointment requirements applicable to auctioneers
1. When appointing auctioneers, the Member States shall take into account the extent to which candidates:
(a)
exhibit a risk of conflict of interest or market abuse having regard to the following:
(i)
any activities on the secondary market;
(ii)
any internal processes and procedures to mitigate the risk of conflict of interest or market abuse;
(b)
are able to fulfil the auctioneer’s tasks in a timely manner and in accordance with the highest professional and quality standards.
2. The auctioneer’s appointment shall be subject to the conclusion of the arrangements referred to in Article 22(2) between the auctioneer and the auction platform concerned.
Appointment requirements applicable to auction platforms
1. Only an entity authorised as a regulated market whose operator organises a secondary market in allowances or allowances derivatives may be appointed as auction platform.
However, where it is provided for in the procurement documents for the joint procurement procedure pursuant to Article 26(1), an entity authorised as a regulated market whose operator organises a wholesale energy market as defined in Article 2(6) of Regulation (EU) No 1227/2011 of the European Parliament and of the Council ( 24 ) , but does not organise a secondary market in allowances or allowances derivatives, may participate in the procurement procedure pursuant to Article 26(1) of this Regulation. Where such entity is appointed as a common auction platform, its operator shall acquire an authorisation for organising a secondary market in allowances or allowances derivatives and shall ensure that it organises such secondary market at least 60 trading days prior to the opening of the first bidding window run by the auction platform concerned.
2. An auction platform appointed under this Regulation for the auctioning of two-day spot contracts shall be authorised, without further legal or administrative requirements by the Member States, to provide appropriate arrangements that facilitate access to and participation in auctions by bidders referred to in Article 18(1) and (2).
3. When appointing an auction platform, the Member States shall take into account the extent to which candidates demonstrate that the following is ensured:
(a)
respect of the principle of non-discrimination both de facto and de jure;
(b)
full, fair and equitable access to bid in the auctions for SMEs covered by the Union system and to bid in the auctions for small emitters, as set out in Article 27(1), Article 27a(1) and Article 28a(4) of Directive 2003/87/EC;
(c)
cost-efficiency and avoidance of undue administrative burden;
(d)
robust auction supervision, notification of suspicions of money laundering, terrorist financing, criminal activity or market abuse, administration of any required remedial measures or sanctions, including the provision of an extra-judicial dispute resolution mechanism;
(e)
avoidance of distortions of competition in the internal market, including the carbon market;
(f)
proper functioning of the carbon market, including the implementation of the auctions;
(g)
connection to one or more clearing systems or settlement systems;
(h)
adequate measures requiring an auction platform to hand over all tangible and intangible assets necessary for the conduct of the auctions by its successor.
4. An auction platform may only be appointed where the Member State in which the candidate regulated market and its market operator are established has ensured that the national measures transposing Title III of Directive 2014/65/EU apply to the auctioning of two-day spot contracts and that the competent authorities of that Member State are able to authorise and supervise the candidate regulated market and its market operator in accordance with the national measures transposing Title VI of that Directive.
Where the candidate regulated market and its market operator are not established in the same Member State, the first subparagraph shall apply to both the Member State where the candidate regulated market is established and the Member State where its market operator is established.
5. The competent national authorities of the Member State in which the candidate regulated market and its market operator are established, designated under Article 67(1) of Directive 2014/65/EU, shall decide on the authorisation of a regulated market appointed, or to be appointed, as an auction platform pursuant to this Regulation, provided that the regulated market and its market operator comply with the national rules transposing Title III of Directive 2014/65/EU. The decision on authorisation shall be taken in accordance with the national rules transposing Title VI of Directive 2014/65/EU.
6. The competent national authorities referred to in paragraph 5 of this Article shall maintain effective market oversight and take the necessary measures to ensure that the requirements referred to in that paragraph are complied with. To that effect, they shall be able to exercise directly, or with the assistance of other competent national authorities designated pursuant to Article 67(1) of Directive 2014/65/EU, the powers provided for in the national measures transposing Article 69 of that Directive with regard to the candidate regulated market and its market operator.
For the purposes of appointing auction platforms in accordance with this Regulation, national measures transposing Articles 79 to 87 of Directive 2014/65/EU shall apply to cooperation between competent national authorities of different Member States and with the European Securities and Markets Authority (ESMA).
