BETA

23 Amendments of Markus FERBER related to 2022/0074(COD)

Proposal for a regulation
Recital 6

(6) The overarching objective of the settlement discipline regime is to improve settlement efficiency within the Union. However, the market volatility in 2020 amplified concerns about the potential negative effects of mandatory buy-in rules, both in normal and stressed market conditions. The application of those rules should therefore be subject to an assessment by the Commission as to its appropriateness in the light of the evolution of settlement efficiency in the Union. Cash penalties and reporting requirements should however continue to apply in order to assess their impact on improving settlement efficiency in the Union. Considering the potential impacts of mandatory buy-in rules, such rules should apply only where certain conditions are met, namely where the application of cash penalties has not resulted in a long-term, continuous reduction of settlement fails in the Union, where settlement efficiency in the Union has not reached appropriate levels considering the situation in third- country capital markets that are comparable in terms of size, liquidity as well as instruments traded and types of transactions executed on such markets, or where the level of settlement fails in the Union has or is likely to have a negative effect on the financial stability of the Union. Where the Commission considers that any of those conditions is met and that the application of mandatory buy-ins is proportionate to address level of settlement fails in the Union, the Commission should be empowered to adopt an implementing act determining for which financial instruments or categories of transactions the mandatory buy-in rules should start to apply. The cash penalties referred to in the third subparagraph of Article 7(2) of Regulation (EU) No 909/2014 should be calculated on a daily basis for each business day that a transaction fails to be settled until the ~~end of the buy-in process or the actual settlement day, whichever is the earlier~~settlement transaction is either settled or bilaterally cancelled.

2022/11/16
Committee: ECON

Proposal for a regulation
Recital 19

(19) Regulation (EU) No 909/2014 requires the cooperation of authorities that have an interest in the operations of CSDs that offer services in relation to financial instruments issued under the law of more than one Member States. Nonetheless, the supervisory arrangements remain fragmented and can lead to differences in the allocation and nature of supervisory powers depending on the CSD concerned. This in turn creates barriers to the cross- border provision of CSD services in the Union, perpetuates the remaining inefficiencies in the Union settlement market and has negative impacts on the stability of Union financial markets. Despite the possibility to set up colleges in accordance with Article 24(4) of that Regulation (, that option has barely been used. In order to ensure an effective and efficient coordination of the supervision by competent authorities, the requirement to set up mandatory colleges should apply in two cases. Firstly, for CSDs that offer notary and central maintenance services in relation to financial instruments issued under the law of more than one Member States (the passporting colleges) and secondly for CSDs that belong to the same group (the “group-level colleges”). To reduce the administrative burden on the authorities participating to colleges, where a CSD offering services cross- border is also part of a group of CSDs, the chair of the college should be able to decide that only one college is established for that CSD. Where the other CSDs in the group also offer services cross-border, the chair of the college should be able to make that decision only where the competent authorities of those other CSDs consent. In that case, there would be only one college for all CSDs within the group that would exercise the tasks assigned to passporting and group-level colleges. Such colleges should ensure the sharing of information pertaining to the CSDs concernedfor CSDs that belong to the same group (the “group-level colleges”).

2022/11/16
Committee: ECON

Proposal for a regulation
Recital 27

(27) Within an appropriately set risk limit, CSDs that are not authorised to provide banking-type ancillary services should be able to offer a sufficient amount of foreign currency settlement through accounts opened with credit institutions or through its own account. The threshold below which a CSD may designate a credit institution to provide any banking-type ancillary services from within a separate legal entity without being required to comply with the conditions set out in Title IV of Regulation (EU) No 909/2014 should be calibrated in a way that promotes efficiency of settlement and the use of banking ancillary services while ensuring financial stability. As a body with specialised expertise regarding banking and credit risk matters, EBA should be entrusted with the development of draft regulatory technical standards to set the appropriate thresholds and, where necessary, any risk mitigating requirements. EBA should also closely cooperate with the members of the ESCB and with ESMA. The Commission should be empowered to adopt regulatory technical standards in accordance with Article 290 of the Treaty on the Functioning of the European Union (TFEU) with regard to the detailed elements of the determining for the provisioning of banking type ancillary services, the accompanying details of the risk management and capital requirements for CSDs and the prudential requirements on credit and liquidity risks for CSDs and designated credit institutions that are authorised to provide banking-type ancillary services while ensuring a level playing field following the principle of "same activity, same risks, same rules".

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point a

Regulation (EU) No 909/2014
Article 7 – paragraph 2 – subparagraph 3

The penalty mechanism referred to in the first subparagraph shall include cash penalties for participants that cause settlement fails (‘failing participants’) except where those settlement fails are caused by factors not attributable to the participants to the transaction or for operations that do not involve two trading parties. Cash penalties shall be calculated on a daily basis for each business day that a transaction fails to be settled after its intended settlement date until the ~~end of the buy-in process referred to in paragraphs 3 to 8 that is to be applied pursuant to paragraph 2a, or the actual settlement day, whichever is the earlier~~transaction is either settled or bilaterally cancelled. The cash penalties shall not be configured as a revenue source for the CSD.;

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b

Regulation (EU) No 909/2014
Article 7 – paragraph 2a – subparagraph 1 – point b

(b) settlement efficiency in the Union has not reached appropriate levels considering the situation in third-country capital markets that are comparable in terms of size, liquidity as well as instruments traded and types of transactions executed on such markets;deleted

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 7

Regulation (EU) No 909/2014
Article 23 – paragraph 2

2. An authorised CSD or a CSD that has applied for authorisation pursuant to Article 17 that intends to provide the core services referred to in Section A, points 1 and 2, of the Annex in relation to ~~financial instrument~~shares constituted under the laws of another Member State referred to in Article 49(1), second subparagraph, or to set up a branch in another Member State shall be subject to the procedure referred to in paragraphs 3 to 7 of this Article. The CSD may provide such services only after it has been authorised pursuant to Article 17 but not earlier than the relevant date applicable in accordance with paragraph 6.

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 7

Regulation (EU) No 909/2014
Article 23 – paragraph 3a (new)

3a. A CSD intending to set up a branch in another Member State for the first time, or to change the range of services provided through a branch, shall communicate the following information to the competent authority of the home Member State: (a) the host Member State; (b) the type of shares constituted under the law of the host Member State in respect of which the CSD intends to provide services and the services which the CSD intends to provide; (c) the currency or currencies that the CSD intends to process; (d) the organisational structure of the branch and the names of the persons responsible for the management of the branch.

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 7

Within 1 month from the receipt of the information referred to in paragraph 3, the competent authority of the home Member State shall communicate that information to the competent authority of the host Member State unless, by taking into account the provision of services envisaged, it has reasons to doubt the adequacy of the administrative structure or the financial situation of the CSD wishing to provide its services in the host Member State. ~~Where the CSD already provides services to other host Member States, the competent authority of the home Member State shall also inform the passporting college referred to in Article 24a.~~

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – title

Colleges of Supervisors for CSDs ~~providing services in another Member State and for CSDs~~ that are part of a group with two or more CSDs

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 1 – subparagraph 1 – point a

~~(a) where a CSD is subject to the procedure referred to in Article 23(3) to (7) (‘passporting college’);~~deleted

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 1 – subparagraph 2

In the case referred to in the first subparagraph, point (a), the CSD’s home competent authority shall establish, manage and chair the passporting college. That college shall be established within 1 month from the date referred to in Article 23(6). Where the CSD submits subsequent notifications pursuant to Article 23(3), the competent authority of the home Member State shall invite the competent authorities of the relevant host Member States to the passporting college within 1 month from the date referred to in Article 23(6).deleted

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 1 – subparagraph 3

In the case referred to in the first subparagraph, point (b), where the parent undertaking is a CSD authorised in the Union, the competent authority of the home Member State of that CSD shall establish, manage and chair the group- level college. Where the parent undertaking is not a CSD authorised in the Union, the competent authority of the home Member State of the CSD with the largest balance sheet total shall establish, manage and chair the group-level college.deleted

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 1 – subparagraph 4

By way of derogation from the third subparagraph, where the application of the criteria referred to in that subparagraph would be inappropriate, the competent authorities may waive by common agreement those criteria and appoint a different CSD’s competent authority to manage and chair the college, taking into account the CSDs concerned and the relative importance of their activities in the relevant Member States. In such cases, the parent CSD or the CSD with the largest balance sheet total, as applicable, shall have the right to be heard before the competent authorities take the decision.deleted

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 2 – point d

~~(d) in the case of a passporting college, the competent authority of the host Member States;~~deleted

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 3

3. Where a CSD subject to the procedure referred to in Article 23(3) to (7) is also part of a group that comprises two or more CSDs and its competent authority is the chair of the group-level college, that competent authority may decide that only one college shall be established for the purposes of paragraph 1, points (a) and (b), of this Article for that CSD. Where any of the other CSDs within the group are also subject to the procedure referred to in Article 23(3) to (7), the chair of the college may make that decision only with the agreement of the competent authorities of those CSDs. Where a college established pursuant to the first subparagraph: (a) tasks referred to in paragraph 6, points (a) to (d), of this Article , the authorities referred to in paragraph 2, points (a) to (f) of this Article in relation to each CSD within the group shall participate to that meeting of the college; (b) tasks referred to in paragraph 6, point (e), of this Article only the authorities referred to, in paragraph 2, points (a), (b), (c), (e) and, where applicable, (f) of this Article shall participate to that meeting of the college.deleted convenes for the exercise of the convenes for the exercise of the

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 6 – subparagraph 1 – point d

(d) in the case of a passporting college, the cooperation of the home and host Member State pursuant to Article 24 and regarding the measures referred to in Article 23(4), point (e) and on any issues encountered in the provision of services in other Member States;deleted

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 6 – subparagraph 1 – point e

(e) ~~in the case of a group-level college,~~ the exchange of information on resources shared and outsourcing arrangements in place within a group of CSDs pursuant to Article 19, on significant changes to the structure and ownership of the group, and on changes in the organisation, senior management, processes or arrangements where those changes have a significant impact on governance or risk management for the CSDs belonging to the group.

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 9

Regulation (EU) No 909/2014
Article 24a – paragraph 7 – subparagraph 2

That agreement shall determine the practical arrangements for the functioning of the college, including the modalities of communication amongst college members, and may determine tasks to be entrusted to the CSD’s competent authority or another member of the college, as well as the modalities for inviting other relevant authorities on an ad hoc basis and for specific topics.

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 909/2014
Article 49 – paragraph 1 – subparagraph 2 – point a

(a) ~~the corporate or similar~~for shares, the law of the Member State where the issuer is established; and

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 909/2014
Article 49 – paragraph 1 – subparagraph 2 – point b

(b) ~~the governing corporate or similar law~~for securities other than shares, the law of the Member State under which the securities are issued.

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 15

Regulation (EU) No 909/2014
Article 49 – paragraph 1 – subparagraph 3

Member States shall compile a list of key relevant provisions of their law, as referred to in the second subparagraph. Competent authorities shall communicate that list to ESMA by 18 December 2014. ESMA shall publish the list by 18 January 2015. Member States shall update that list ~~regularly and at least~~ every 2 years. They shall communicate the updated list at those regular intervals to ESMA. ESMA shall publish the updated list.;

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 17 – point c

Regulation (EU) No 909/2014
Article 54 – paragraph 5 – subparagraph 1

Paragraph 4 shall not apply to credit institutions referred to in paragraph 2, point (b), that offer to settle the cash payments for part of the CSD’s securities settlement system, if the total value of such cash settlement through accounts opened with those credit institutions does not exceed a maximum amount calculated over a one- year period. That threshold shall be determined in accordance with paragraph 9 and be reviewed on an annual basis.

2022/11/16
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 17 – point d

Regulation (EU) No 909/2014
Article 54 – paragraph 9 – subparagraph 1

EBA shall, in close cooperation with ESMA and the members of the ESCB, develop draft regulatory technical standards to determine the maximum amount referred to in paragraph 5, taking into account ~~the need to balance the credit and liquidity risks for CSDs~~at least the following criteria: (a) the implications for the market stability that could derive from a change of risk profile of CSDs and their participants, taking into account the systemic importance of CSDs for the functioning of securities markets; (b) the implications for the credit and liquidity risks for CSDs, for the designated credit institution(s) involved and for the CSD participants that that result from the settlement of cash payments through accounts opened with credit institutions ~~and~~exempted from the application of paragraph 4; (c) the need to allow CSDs to settle in foreign currencies through accounts opened with such credit institutions; (d) that it should not undermine the use of central bank money where practical and available; and (e) the existing global guidance and principles related to this activity. When developing these draft regulatory technical standards the EBA shall also determine, where necessary, any accompanying appropriate risk management and prudential mitigating requirements.

2022/11/16
Committee: ECON