A new Markets in Financial Instruments bill has passed first reading in Parliament.

The Budget and Finance Committee report shows indicates that the new bill will introduce the requirements of MiFID in the Bulgarian legislation and measures to implement MiFIR. The aim is to enhance transparency of the markets in financial instruments, improve investors’ protection, strengthen confidence, and prevent unregulated trading in financial instruments.

The new EU regulatory framework aims to ensure the right level of harmonisation, investors’ protection, as well as conditions for investment brokers to provide services across the EU under the license obtained in the respective country of origin.

The new law will expand the range of financial instruments by including some commodity and other derivatives and some types of energy contracts. The current legislation on the organization and work of investment brokers and regulated securities markets will be upgraded. New requirements will be introduced regarding the management and representation of investment brokers; there will be detailed requirements for a good track record, professional qualification and experience of the members of the managing and controlling authorities of investment brokers. The current approval procedure for members of the managing and controlling authorities of investment brokers will not change. Investment brokers will be able to sign contracts with tied agents which will provide certain services under the full and unconditional responsibility of one investment broker.

There will be requirements to the information that investment brokers should provide to clients and prospects, as well as requirements for assessment of relevance and expediency. There will be requirements related to the use of the so called algorithmic trading in which a computer algorithm will automatically determine the elements of the order with limited or zero human intervention.

A new type of multilateral trading system will be created: a market for growth. The aim is to encourage small and medium-sized businesses to raise capital through the capital market.

Amendments to the Safe Use of Nuclear Energy Act have passed second reading. The revisions are necessary in order to fulfil an EU directive which lays down the basic safety standards against the dangers from exposure to ionising radiation.

The directive determines a stepwise approach to regulatory control by introducing a notification, registration and licensing procedures in situations of planned radiation. It also regulates the requirements and criteria to the implementation of those procedures. Pursuant to the directive, all activities related to planned radiation will be subject to notification. In view of the revisions, the powers of the Nuclear Regulatory Agency Chair will be increased to include issuing, termination and revocation of registration certificates.