S/C/N/795  
18 March 2015  
(15-1553) Page: 1/2  
Council for Trade in Services  Original: English  
 
  NOTIFICATION PURSUANT TO ARTICLE III:3 OF THE 
WTO AGREEMENT ON TRADE IN SERVICES 
The following notification from the delegation of  the European Union, dated 16 March 2015, is 
being circulated to the Members of the Council for Trade in Services. 
 
_______________ 
 
The following notification is made pursuant to GATS Article III:3 and relates to measures adopted 
by the European Union in 2014. Given that th ere is no common understanding among WTO 
Members on when a measure "significantly affects trade in services" within the meaning of GATS 
Article III:3 and that the European Union cannot make a positive determination on this issue, it is 
therefore notifying measures that may be relevant  to trade in services without prejudice to the 
interpretation of the phrase "significantly affect trade in services" in Article III:3. 
1  MEMBER NOTIFYING 
The European Union 2  NOTIFICATION UNDER ARTICLE(S) 
Article III, paragraph 3, of the General Agreement on Trade in Services 
3  DATE OF ENTRY INTO FORCE 
2 July 2014 4  AGENCY RESPONSIBLE FOR IMPLEMENTATION AND ENFORCEMENT OF THE MEASURE 
Member States of the European Union 
 5  DESCRIPTION OF THE MEASURE
* 
a) Full title of the EU acts: 
 Directive 2014/65/EU 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/EU (MiFID II). 
 Regulation (EU) No 600/2014 of the European Pa rliament and of the Council of 15 May 2014 on 
markets in financial instruments and amending Regulation (EU) No 648/2012. 
 
b) Brief summary of the content with a focu s on potential effect on services trade: 
 
Directive 2014/65/EU repeals Directive 2004/39/EC and is accompanied by Regulation 600/2014. 
Member States have two years to transpose the new rules which will be applicable starting 
January 2017. The new framework aims to make financial markets more efficient, resilient and 
transparent. It introduces a market structure wh ich closes loopholes and ensures that trading, 
wherever appropriate, takes place on regulated pl atforms. It introduces rules on high frequency 
trading. It improves the transparency and oversi ght of financial markets – including derivatives 
                                               
* Including international agreements, recognition measures or other types. S/C/N/795 
 
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  markets - and addresses the issue of excessive pric e volatility in commodity derivatives markets. A 
new framework will improve conditions for competition in the trading and clearing of financial instruments. Building on the rules already in place, the revised MiFID also strengthens the protection of investors by introducing robust organisational and conduct requirements or by 
strengthening the role of management bodies. The new framework also increases the role and 
supervisory powers of regulators and establishes powers to prohibit or restrict the marketing and distribution of certain products in well-defined circumstances.  
 
A harmonised regime for granting access to EU professional markets for firms from third countries, based on an equivalence assessment of third country jurisdictions by the Commission, is introduced. The regime applies only to the cross-border provision of investment services and 
activities provided to professional and eligible counterparties. For a transitional period of three 
years and pending equivalence decisions by the Commission, national third-country regimes continue to apply. 
 
MiFID 2 introduces a trading obligation for derivatives which are sufficiently liquid and are eligible for clearing under EMIR. Investment firms are re quired to trade in these instruments only on 
regulated markets, MTFs, OTFs or equivalent third-country trading venues. The Commission 
adopts decisions upon an equivalence assessment of third-country jurisdiction.   A trading obligation for shares requires investment firms to execute transactions in shares only on 
a regulated market, MTF, systematic internaliser, or a third-country trading venue assessed as 
equivalent. The Commission adopts decisions upon  an equivalence assessment of third-country 
legal and supervisory framework.  
 
MiFIR establishes new clearing access rules for third-country CCPs and trading venues. A third-country CCPs may request access to EU trading venues provided that the Commission adopted an 
equivalence decision under EMIR. Similarly, third-country trading venues may request the access 
to a CCP established in the EU only if the Commission considered third-country framework as equivalent.   
6  MEMBERS SPECIFICALLY AFFECTED 
None 7  TEXTS AVAILABLE FROM 
 Other sources (address, fax and telephone of other body) 
 EU Official Journal, available on line at: 
 
http://eur-lex.europa.eu/legal-con tent/EN/TXT/?uri=CELEX:32014L0065   
http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32014R0600  
 
 
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