SME growth markets; authorisation to issue statutory instruments

(1) The operator of a multilateral trading facility may have it, or a segment of it, registered with the Bundesanstalt as a growth market for small and medium-sized enterprises (SME growth market), provided that the following requirements are satisfied: 1. at least 50 per cent of the issuers whose financial instruments are admitted to trading on the multilateral trading facility are small and medium-sized enterprises; 2. the operator has established appropriate criteria for the admission of financial instruments to trading on the market; 3. the operator makes the admission of financial instruments to trading on the market conditional on sufficient information being published on admission, to enable the public to make an informed assessment of the issuer and the financial instruments; that information consists either of an admission document or a prospectus, where requirements set out on the basis of Regulation (EU) 2017/1129 apply in respect of a public offer in connection with the initial admission of the financial instrument to trading on the multilateral trading facility; 4. the operator ensures that suitable, regular financial reporting is provided by the issuer on the market whose financial instruments are admitted to trading on the multilateral trading facility, in particular through audited annual reports; 5. the issuers defined in Article 3(1), no. 21 of Regulation (EU) No 596/2014 and the persons discharging managerial responsibilities at an issuer defined in Article 3(1), no. 25 of Regulation (EU) No 596/2014, and the persons closely associated with them defined in Article 3(1), no. 26 of Regulation (EU) No 596/2014, satisfy the respective requirements applicable to them under Regulation (EU) No 596/2014; 6. the operator collects information published by an issuer on the basis of a legal obligation and makes it available to the public; and 7. the operator establishes effective systems and controls suitable for detecting and preventing market abuse on that market under Regulation (EU) No 596/2014. The operator's ability to establish additional requirements remains unaffected.
(1a) Where the SME growth market is a segment of a multilateral trading facility, the following requirements must be satisfied in addition to those set out in subsection (1): 1. the segment of the multilateral trading facility registered as an SME growth market is clearly separated from the other market segments operated by the operator of the multilateral trading facility; in particular the segment bears a different name, has a different rulebook, uses a different marketing strategy, has a different media presence, and has a specifically assigned trading venue identification number; 2. transactions carried out within the specific SME growth market segment are clearly distinguished from other market activity within the other segments of the multilateral trading facility; and 3. at the request of the Bundesanstalt, the multilateral trading facility provides a comprehensive list of the instruments listed on the SME growth market segment concerned, and any information the competent authority may request on the functioning of the SME growth market segment.
(1b) Where the issuer terminates the admission of securities to trading on the SME growth market, section 39(2) to (6) of the Stock Exchange Act applies correspondingly, unless the issuer applies for the admission of those securities to trading on the regulated market.
(2) The Bundesanstalt withdraws the registration of an SME growth market where its operator applies for this, or where the requirements for registration under subsection (1) or subsection (1a) are no longer satisfied. The Bundesanstalt notifies the European Securities and Markets Authority without delay of the registration of an SME growth market and of its withdrawal.
(3) A financial instrument admitted to trading on an SME growth market may be traded on another trading venue only where the issuer of the financial instrument has been informed of this and has not objected. Where the other trading venue is itself an SME growth market, the issuer incurs no obligations in relation to that other SME growth market as regards corporate governance and control, or initial, ongoing or ad hoc disclosure requirements. Where the other trading venue is not an SME growth market, the issuer must be informed, in relation to that trading venue, of any obligations to which it will be subject as regards corporate governance and control, or initial, ongoing or ad hoc disclosures.
(4) The Federal Ministry of Finance may, by statutory instrument not requiring the consent of the Bundesrat, adopt further provisions on 1. the nature of the criteria under subsection (1), no. 2, 2. the content, nature, scope and form of the information to be published on admission under subsection (1), no. 3, and 3. the content, nature, scope and form of the reporting under subsection (1), no. 4. The Federal Ministry of Finance may transfer this authorisation, by statutory instrument, to the Bundesanstalt.