31 Amendments of Nils TORVALDS related to 2013/0314(COD)
Amendment 140 #
Proposal for a regulation
Recital 8
Recital 8
(8) The scope of this Regulation should be as broadappropriate as necessary to create a preventive regulatory framework. The production of benchmarks involves discretion in their determination and is inherently subject to certain types of conflicts of interest, which implies the existence of opportunities and incentives to manipulate those benchmarks. These risk factors vare common to ally among benchmarks, and all of them should be made subject to adequate governance and control requirements. Since the vulnerability and importance of a benchmark varies over time, restricting the scope by reference to currently important or vulnerable indices would not address the risks that any benchmark may pose in the future. In particular, benchmarks that are currently not widely used may be so used in the future, so that, in their regard, even a minor manipulation may have significant impact.
Amendment 146 #
Proposal for a regulation
Recital 9
Recital 9
(9) The critical determinant of the scope of this Regulation should be whether the output value of the benchmark that determines the value of a financial instrument, financial contract or measures the performance of an investment fund can be manipulated. Therefore the scope should not be dependent on the nature of the input data. Benchmarks calculated from economic input data, such as share prices and non- economic number or values such as weather parameters should thus be included. The framework should cover those benchmarks subject to these risks, but should also provide for a proportionate response to the risks that different benchmarks pose. This Regulation should therefore cover all benchmarks which are used to price financial instruments listed or traded on regulated venues.
Amendment 187 #
Proposal for a regulation
Recital 34
Recital 34
(34) The market for benchmarks is global. Participants, such as administrators, contributors and users, as well as the input data, come from within and outside the European Union. This Regulation should take into account the Principles for financial benchmarks issued by the International Organization of Securities Commissions (IOSCO) (hereinafter referred to as ‘IOSCO Principles’) on the 17 July 2013 which serve as a global standard for regulatory requirements for benchmarks. It is necessary for investor protection that an assessment that the supervisions and regulation in any third country are equivalent to Union supervision and regulation of benchmarks takes place before any benchmark provided from that third country can be used in the Union.
Amendment 228 #
Proposal for a regulation
Article 3 – paragraph 1 – point 2
Article 3 – paragraph 1 – point 2
(2) ‘benchmark’' means any tradable or widely used commercial index by reference to which the amount payable under a financial instrument or a financial contract, or the value of a financial instrument is determined or an index that is used to measure the performance of an investment fund;
Amendment 231 #
Proposal for a regulation
Article 3 – paragraph 1 – point 4
Article 3 – paragraph 1 – point 4
(4) ‘'administrator’' means the natural or legal person that has control over the provision of a critical benchmark;
Amendment 234 #
Proposal for a regulation
Article 3 – paragraph 1 – point 5
Article 3 – paragraph 1 – point 5
(5) ‘'user of a benchmark’' means any person who issues or owns a financial instrument or is party to a financial contract which references a critical benchmark;
Amendment 267 #
Proposal for a regulation
Article 3 – paragraph 1 – point 21
Article 3 – paragraph 1 – point 21
(21) ‘critical benchmark’ means a benchmark,: a) the majority of contributors to which are supervised entities and that reference financial instruments having a notional value of at least 500 billion euro;; (b) that does not include benchmarks compiled from regulated data as defined in point (11); and (c) that reference financial instruments admitted to trading or traded on at least one Union trading venue, or other financial assets as defined in international accounting standard IAS 32, having a notional cumulative amount of at least 500 billion euro on such Union trading venues; (d) that is widely used on the international markets and (e) for which there is no reasonable substitute so that cessation of the benchmark would have a significant adverse impact on financial stability, the orderly functioning of the markets, consumers or the real economy.
Amendment 290 #
Proposal for a regulation
Article 5 – paragraph 3 – point c a (new)
Article 5 – paragraph 3 – point c a (new)
(c a) already existing legislation applicable to certain administrators.
Amendment 291 #
Proposal for a regulation
Article 5 – paragraph 3 – point c b (new)
Article 5 – paragraph 3 – point c b (new)
(c b) the IOSCO principles.
Amendment 301 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1 – point a – paragraph 1
Article 7 – paragraph 1 – subparagraph 1 – point a – paragraph 1
The input data shall be transaction data. If available transaction data is not sufficient to represent accurately and reliably the market or economic reality that the benchmark is intended to measure, input data which is not transaction data may be used provided that such data is verifiable. If such data is not verifiable, it may still be used, provided the administrator publishes information about this fact.
Amendment 315 #
Proposal for a regulation
Article 8 – paragraph 2 – introductory part
Article 8 – paragraph 2 – introductory part
2. The administrator shall monitor the input data and contributorensure that the contributors have adequate systems and effective controls in order to identify breaches of the [Market Abuse Regulation] and systems to notify the relevant competent authority of any conduct that may involve manipulation or attempted manipulation of the benchmark and notify the relevant competent authority in accordance with Article 11(2) of the [Market Abuse Regulation] and provide all relevant information where it suspects that, in relation to the benchmark, there has been:
Amendment 329 #
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
2. The code of conduct shall be signed by the administrator and the contributors and shall be legally binding on all parties to ipublish a confirmation of compliance with the Code of conduct.
Amendment 417 #
Proposal for a regulation
Article 15 – paragraph 1 – point b
Article 15 – paragraph 1 – point b
Amendment 439 #
Proposal for a regulation
Article 18
Article 18
Amendment 451 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
A supervised entity may use a benchmark in the Union as a reference in a financial instrument or financial contract or to measure the performance of an investment fund if it is provided by an administrator authorised in accordance with Article 23 or an administrator located in a third country that is registered in accordance with Article 21.
Amendment 455 #
Proposal for a regulation
Article 20 – paragraph 1 – introductory part
Article 20 – paragraph 1 – introductory part
1. Benchmarks provided by an administrator established in a third country may be used by supervised entities in the Union provided that the following conditions are complied with:. Where such benchmarks are critical, they may be used provided that the legal framework, supervisory practice, or rules of the producer or administrator of the benchmark in that third country comply with IOSCO principles for financial benchmarks or other international standards for benchmarks. ESMA shall maintain a register of third countries and benchmark providers that it considers can be relied upon as a basis for compliance with international standards without further evidence. ESMA shall update that list using its own information and in consideration of evidence submitted by supervised entities.
Amendment 458 #
Proposal for a regulation
Article 20 – paragraph 1 – point a
Article 20 – paragraph 1 – point a
Amendment 462 #
Proposal for a regulation
Article 20 – paragraph 1 – point b
Article 20 – paragraph 1 – point b
Amendment 465 #
Proposal for a regulation
Article 20 – paragraph 1 – point c
Article 20 – paragraph 1 – point c
Amendment 469 #
Proposal for a regulation
Article 20 – paragraph 1 – point d
Article 20 – paragraph 1 – point d
Amendment 472 #
Proposal for a regulation
Article 20 – paragraph 1 – point e
Article 20 – paragraph 1 – point e
Amendment 475 #
Proposal for a regulation
Article 20 – paragraph 2
Article 20 – paragraph 2
Amendment 493 #
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. An administrator shall apply for authorisation to provide critical benchmarks if it provides indices which are used or intended to be used to reference financial instruments or financial contracts or to measure the performance of an investment fund.
Amendment 502 #
Proposal for a regulation
Article 24 – paragraph 1 – point d a (new)
Article 24 – paragraph 1 – point d a (new)
(da) has transferred the functions as administrator of its benchmarks to another administrator who is properly authorised.
Amendment 567 #
Proposal for a regulation
Article 39 – paragraph 1
Article 39 – paragraph 1
1. An administrator providing a critical benchmark on [the date of entry into force of this Regulation] shall apply for authorisation under Article 23 within [24 months after the date of application].
Amendment 573 #
Proposal for a regulation
Article 39 – paragraph 3
Article 39 – paragraph 3
3. Where an existing benchmark does not meet the requirements of this Regulation, but changing that benchmark to conform with the requirements of this Regulation would result in a force majeure event, frustrate or otherwise breach or change the terms of any financial contract or financial instrument which references that benchmark, paragraph 4 of this Article shall apply.
Amendment 576 #
Proposal for a regulation
Article 39 – paragraph 4
Article 39 – paragraph 4
4. The use of a benchmark shall be permitted by the relevant competent authority of the Member State where the administrator is located until such time as the benchmark references financial instruments and financial contracts worth no more than 5% by valueuntil the termination of the financial instruments and financial contracts that referenced this benchmark at the time of entry into force of this Regulation. No new financial instruments or financial contracts shall reference such an existing benchmark after the entry into application of this Regulation.
Amendment 582 #
Proposal for a regulation
Article 41 – paragraph 2
Article 41 – paragraph 2
It shall apply from [12 months after entry into force]the publication of the delegated acts issued by the Commission and the technical standards issued by ESMA.
Amendment 588 #
Proposal for a regulation
Annex 1 – section 1 – part I – point 7
Annex 1 – section 1 – part I – point 7
7. Where Administrators receive input data from employees of a front office function, the Administrator shall, where available, obtain data from other sources that can corroborate that input data.
Amendment 621 #
Proposal for a regulation
Annex 1 – section 3 – part I – point 1 – point c a (new)
Annex 1 – section 3 – part I – point 1 – point c a (new)
(ca) a process for controlling the existence of systems for identification of potential breaches of the [Market Abuse Regulation or Directive] and a whistleblowing procedure.
Amendment 642 #
Proposal for a regulation
Annex 2 – point 16 – point d
Annex 2 – point 16 – point d
(d) effective conflicts of interest management procedures and communication controls, both within contributors and between contributors and other third parties, to avoid any inappropriate external influence over those responsible for submitting rates. Submitters shall work in locations physically separated from interest rate derivatives traders;