Next event: Text adopted by Parliament, 1st reading/single reading 2024/04/24 more...
- Decision by Parliament, 1st reading 2024/04/24
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations 2024/03/04
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations 2024/03/04
- Coreper letter confirming interinstitutional agreement 2024/02/15
- Text agreed during interinstitutional negotiations 2024/02/14
- Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71) 2023/12/13
- Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71) 2023/12/11
- Committee report tabled for plenary, 1st reading 2023/12/05
- Vote in committee, 1st reading 2023/11/28
- Committee decision to open interinstitutional negotiations with report adopted in committee 2023/11/28
- Contribution 2023/09/15
- Amendments tabled in committee 2023/07/07
- Amendments tabled in committee 2023/07/07
- Committee draft report 2023/06/13
- European Central Bank: opinion, guideline, report 2023/04/26
- Economic and Social Committee: opinion, report 2023/03/22
- Contribution 2023/03/21
Progress: Awaiting Council's 1st reading position
Role | Committee | Rapporteur | Shadows |
---|---|---|---|
Lead | ECON | HÜBNER Danuta Maria ( EPP) | LALUCQ Aurore ( S&D), POULSEN Erik ( Renew), GRUFFAT Claude ( Verts/ALE), ROOKMAKER Dorien ( ECR), GUSMÃO José ( GUE/NGL) |
Committee Opinion | ITRE | ||
Committee Opinion | JURI |
Lead committee dossier:
Legal Basis:
TFEU 114
Legal Basis:
TFEU 114Subjects
Events
The Committee on Economic and Monetary Affairs adopted the report by Danuta Maria HÜBNER (EPP, PL) on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets.
The committee responsible recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure should amend the proposal as follows:
Active Account
The amended text set a solid active account requirement (AAR) that will require certain financial and non-financial counterparties to have an account at an EU CCP , which includes operational elements such as the ability to handle the counterparty’s transactions at short notice if need be and activity elements so that the account is effectively used. This is ensured by a number of requirements, which have to be fulfilled by these accounts, including requirements for counterparties above a certain threshold to clear trades in the most relevant sub-categories of derivatives of substantial systemic importance defined in terms of class of derivative, size and maturity.
Joint supervisory activities
Each authorised CCP authorised should be subject to joint supervisory activities. Those activities should be coordinated by ESMA and the college in the context of the annual review and evaluation process and should be open for the participation of each college member on a voluntary basis.
ESMA should be in charge of establishing and coordinating the joint supervisory activities.
Joint monitoring mechanism
To enhance the ability of relevant Union bodies to have a comprehensive overview of market developments relevant for clearing in the Union, monitor the implementation of certain clearing related requirements of Regulation (EU) No 648/2012 and collectively discuss the potential risks arising from the interconnectedness of different financial actors and other issues related to the financial stability, the report noted the need to establish a cross-sectoral monitoring mechanism bringing together the relevant Union bodies involved in the supervision of Union CCPs, clearing members and clients.
Such Joint Monitoring Mechanism should be managed and chaired by ESMA as the Union authority supervising Union CCPs and supervising systemically important third-country CCPs. Other participants should include representatives from the Commission, the EBA, EIOPA, the ESRB, the ECB and the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism.
To inform future policy decisions, ESMA, in cooperation with the other bodies participating in the Joint Monitoring Mechanism, should submit an annual report to the European Parliament, the Council and the Commission on the results of their activities. This report should include recommendations for potential Union-level action to address identified horizontal risks.
Strengthening ESMA’s role in emergency situations
Members considered that ESMA should be provided with a coordination role in cross-border emergency situations. Therefore, ESMA should be able to convene meetings of the CCP Supervisory Committee, either on its own initiative or upon request, potentially with an enlarged composition, to coordinate effectively competent authorities’ responses in emergency situations. ESMA should also be able to ask, by simple request, information from market participants which is necessary for ESMA to perform its coordination function in those situations and to be able to issue recommendations to the competent authority.
Lastly, given that developments in financial markets could have direct implications for the banking system or for monetary policy decisions, representatives of relevant central banks of issue should always be invited to participate in the coordination meetings of the CCP Supervisory Committee in response to such emergency situations.
PURPOSE: to increase the safety and efficiency of Union central counterparties (CCPs) by improving their attractiveness, encouraging clearing in the Union and enhancing the cross-border consideration of risks.
PROPOSED ACT: Regulation of the European Parliament and of the Council.
ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.
BACKGROUND: Regulation (EU) No 648/2012 (the European Market Infrastructure Regulation or EMIR) regulates derivatives transactions, including measures to limit their risks through clearing in central counterparties (CCPs). CCPs take on the risks faced by the parties to a trade, becoming the buyer to every seller and the seller to every buyer. By doing so, they increase market transparency and efficiency and reduce the risks in financial markets, especially for derivatives.
Whilst EMIR has established a robust framework for central clearing, certain areas of the current supervisory framework have proven overly complex. This limits EU CCPs’ ability to attract business both within the EU and internationally.
A safe, robust, efficient and attractive clearing system in the EU is essential for a well-functioning Capital Markets Union. If clearing does not function properly, financial institutions, companies and investors face more risks and higher costs – as the 2008 financial crisis showed.
The proposal aims to mitigate these obstacles in order to foster modern and competitive CCPs in the EU that can attract business.
This proposal is complemented by a proposal for a Directive introducing a limited number of changes to Directive 2013/36/EU (Capital Requirements Directive or ‘CRD’), Directive (EU) 2019/2034 (Investment Firms Directive or ‘IFD’) and Directive 2009/65/EU (Undertakings for Collective Investment in Transferable Securities Directive or ‘UCITS Directive’) as regards the treatment of concentration risk towards CCPs and the counterparty risk on centrally cleared derivative transactions. These amendments are necessary to ensure that the objectives of this EMIR review are achieved as well as to assure coherence. The two proposals should therefore be read in conjunction.
This proposal is part of the initiative aimed at ensuring that the EU has a safe, robust and competitive central clearing ecosystem, thereby promoting the Capital Markets Union (CMU) and reinforcing the EU’s open strategic autonomy. Robust and safe central counterparties (CCPs) enhance the trust of the financial system and crucially support the liquidity of key markets.
CONTENT: the Commission proposal introduces targeted amendments to EMIR which aim to improve the central clearing system in the EU , making EU CCPs more efficient and attractive. It addresses the vulnerabilities that stem from the current excessive reliance on certain third-country CCPs deemed to be substantially systemic for the EU, ensuring that the EU has a competitive and efficient clearing system that is safe and resilient.
The proposed regulation will have a positive impact by:
- improving the attractiveness of EU CCPs by, for example, shortening the approval process for offering new services to 10 working days instead of up to 2 years in certain cases;
- enhancing the resilience of the clearing system considering recent developments on energy markets by further enhancing the existing supervisory framework;
- reducing excessive reliance on third-country CCPs , strengthening the EU’s open strategic autonomy, by requiring all relevant market participants to hold active accounts at EU CCPs for clearing at least a portion of certain derivative contracts.
More specifically, clearing members (mainly banks) will benefit from extended, faster clearing offers by CCPs, thereby providing more choices on where to clear.
As for the clients , such as non-financial corporates or financial market participants, they will benefit from:
- more transparency on margin models and collateral requirements;
- information on where to clear certain contracts that can be cleared both at a third-country CCP and at an EU CCP; and
- the possibility to use bank and public guarantees.
In addition, the proposal entails two different aspects related to the equivalence framework under EMIR.
First, the Commission simplifies the framework for intragroup transactions . It provides more legal certainty to market participants and international partners by deleting the condition of an equivalence decision to benefit from intragroup exemption and replacing it by a list of jurisdictions for which an exemption cannot be granted. In order to benefit from the intragroup exemption, entities located in third countries should be in a country that is not identified as having deficiencies in terrorist financing and anti-money laundering regulations or considered as a non-cooperative jurisdiction for tax purposes. The country should also not have been identified by the Commission based on legal, supervisory and enforcement arrangements with regard to risks, including legal and counterparty credit risks.
Second, the proposal introduces the possibility for the Commission to take a more proportionate approach when adopting an equivalence decision for a third country by waiving the requirement to have an effective equivalent system for recognising third-country CCPs. This will be possible only when it is deemed to be in the interests of the Union and particularly when the risks involved in clearing in that third country are low.
Documents
- Text adopted by Parliament, 1st reading/single reading: T9-0348/2024
- Decision by Parliament, 1st reading: T9-0348/2024
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE759.078
- Approval in committee of the text agreed at 1st reading interinstitutional negotiations: PE759.078
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2024)001022
- Text agreed during interinstitutional negotiations: PE759.078
- Committee report tabled for plenary, 1st reading: A9-0398/2023
- Contribution: COM(2022)0697
- Amendments tabled in committee: PE751.545
- Amendments tabled in committee: PE751.629
- Committee draft report: PE749.908
- European Central Bank: opinion, guideline, report: CON/2023/0011
- European Central Bank: opinion, guideline, report: OJ C 204 12.06.2023, p. 0003
- Economic and Social Committee: opinion, report: CES5896/2022
- Contribution: COM(2022)0697
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SEC(2022)0697
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2022)0697
- Document attached to the procedure: EUR-Lex
- Document attached to the procedure: SWD(2022)0698
- Legislative proposal published: COM(2022)0697
- Legislative proposal published: EUR-Lex
- Document attached to the procedure: EUR-Lex SEC(2022)0697
- Document attached to the procedure: EUR-Lex SWD(2022)0697
- Document attached to the procedure: EUR-Lex SWD(2022)0698
- Economic and Social Committee: opinion, report: CES5896/2022
- European Central Bank: opinion, guideline, report: CON/2023/0011 OJ C 204 12.06.2023, p. 0003
- Committee draft report: PE749.908
- Amendments tabled in committee: PE751.545
- Amendments tabled in committee: PE751.629
- Text agreed during interinstitutional negotiations: PE759.078
- Coreper letter confirming interinstitutional agreement: GEDA/A/(2024)001022
- Text adopted by Parliament, 1st reading/single reading: T9-0348/2024
- Contribution: COM(2022)0697
- Contribution: COM(2022)0697
History
(these mark the time of scraping, not the official date of the change)
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9/summary |
|
docs/10 |
|
events/9 |
|
forecasts |
|
procedure/stage_reached |
Old
Awaiting Parliament's position in 1st readingNew
Awaiting Council's 1st reading position |
docs/10 |
|
events/9 |
|
forecasts |
|
procedure/stage_reached |
Old
Awaiting Parliament's position in 1st readingNew
Awaiting Council's 1st reading position |
forecasts/0 |
|
forecasts/0 |
|
forecasts/0 |
|
forecasts/0 |
|
forecasts/0 |
|
forecasts/0 |
|
forecasts/0 |
|
forecasts/0 |
|
docs/8 |
|
events/7 |
|
events/8 |
|
links |
|
docs/8 |
|
forecasts |
|
docs/8 |
|
events/4/summary |
|
events/6 |
|
events/5 |
|
docs/8 |
|
events/2 |
|
events/3 |
|
events/4 |
|
procedure/Other legal basis |
Rules of Procedure EP 159
|
procedure/stage_reached |
Old
Awaiting committee decisionNew
Awaiting Parliament's position in 1st reading |
forecasts |
|
docs/4/docs/1/url |
Old
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=OJ:C:2023:204:TOCNew
https://eur-lex.europa.eu/oj/daily-view/L-series/EN/TXT/?uri=OJ:C:2023:204:TOC |
docs/8/date |
Old
2023-09-14T00:00:00New
2023-09-15T00:00:00 |
docs/9/date |
Old
2023-03-20T00:00:00New
2023-03-21T00:00:00 |
docs/8 |
|
docs/6 |
|
docs/6 |
|
committees/0/shadows/4 |
|
docs/4 |
|
docs/5 |
|
commission |
|
forecasts |
|
docs/3 |
|
docs/3 |
|
committees/0/shadows/3 |
|
committees/0/shadows/0 |
|
procedure/Legislative priorities/1/title |
Old
Joint Declaration on EU legislative priorities for 2023 and 2024New
Joint Declaration 2023-24 |
committees/0/shadows/0 |
|
procedure/Legislative priorities |
|
committees/0/shadows |
|
committees/1 |
Old
New
|
committees/2 |
Old
New
|
committees/1 |
|
committees/1/opinion |
False
|
committees/2 |
|
committees/0/rapporteur |
|
events/1 |
|
procedure/dossier_of_the_committee |
|
procedure/stage_reached |
Old
Preparatory phase in ParliamentNew
Awaiting committee decision |
committees/1/opinion |
False
|
docs/0 |
|
events/0/summary |
|
docs/0/summary |
|
docs/0/docs/1 |
|
docs/1/docs/0 |
|
events/0/docs/1 |
|