BETA

54 Amendments of Markus FERBER related to 2022/0403(COD)

Proposal for a regulation
Recital 9 a (new)

(9a) Commission Implementing Decision (EU) 2022/174 of 8 February 2022 with respect to the equivalence of central counterparties in the United Kingdom (UK CCPs) expires on 30 June 2025. A clear roadmap for reducing Union market participants' exposures to UK CCPs is needed to mitigate financial stability risks associated with the current reliance on UK CCPs. Such a roadmap should foresee that the majority of risk exposure arising from the use of relevant clearing services is held in accounts with EU CCPs no longer than five years after entry into force of this Regulation. If the Joint Monitoring Mechanism comes to the conclusion, following this five-year period, that this goal has been achieved, it should recommend to the European Commission and ESMA to adopt equivalence and recognition decisions without any time limitations with regard to UK CCPs. Such recommendation presupposes that other applicable criteria for such decisions set out in this Regulation are met.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 10

(10) It is necessary to address the financial stability risks associated with excessive exposures of Union clearing members and clients to systemically important third-country CCPs (Tier 2 CCPs) that provide clearing services that have been identified by ESMA as clearing services of substantial systemic importance pursuant to Article 25(2c) of Regulation (EU) No 648/2012. In December 2021, ESMA concluded that the provision of certain clearing services provided by two Tier 2 CCPs, namely for interest rate derivatives denominated in euro and Polish zloty, Credit Default Swaps (CDS) denominated in euro and Short-Term Interest Rate Derivatives (STIR) denominated in euro, are of substantial systemic importance for the Union or one or more of its Member States. As noted by ESMA in its December 2021 assessment report, were those Tier 2 CCPs to face financial distress, changes to those CCPs’ eligible collateral, margins or haircuts may negatively impact the sovereign bond markets of one or more Member States, and more broadly the Union financial stability. Furthermore, disruptions in markets relevant for monetary policy implementation may hamper the transmission mechanism critical to central banks of issue. It is therefore appropriate to require any financial counterparties and non-financial counterparties that are subject to the clearing obligation to hold, directly or indirectly, accounts with a minimum level of ~~activity~~risk exposure at CCPs established in the Union. That requirement should ~~reduce the provision of those clearing services by those Tier 2 CCPs to a level where such clearing is no longer of substantial~~ensure that the majority of the risk exposure by Union market participants arising from any clearing services identified by ESMA as systemically importancet is held with Union CCPs over a five-year horizon.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 11

(11) It is necessary to ensure that the calibration of the level of the clearing activity to be maintained in accounts at Union CCPs can be adapted to changing circumstances. ESMA has an important role in the assessment of the substantial systemic importance of third-country CCPs and their clearing services. ESMA, in cooperation with the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the ESRB, and after having consulted the European System of Central Banks (ESCB), should therefore develop draft regulatory technical standards specifying the details of the level of substantially systemic clearing services to be maintained in the active accounts in Union CCPs by financial and non-financial counterparties subject to the clearing obligation. Such calibration should not go beyond what is necessary and proportionate to reduce clearing in the identified clearing services at Tier 2 CCPs concerned. In that regard, ESMA should consider the costs, risks and the burden such calibration entails for financial and non-financial counterparties, the impact on their competitiveness, and the risk that those costs are passed on to non-financial firms. Furthermore, ESMA should also ensure that the envisaged reduction in clearing in those instruments, identified as of substantial systemic importance, results in them no longer being considered of substantial systemic importance when ESMA reviews the recognition of the relevant CCPs which according to Article 25(5) of that Regulation and where such a review should be done at least every five yearscalibration results in a majority of risk exposure in the relevant categories of derivatives contracts by Union market participants being held with Union CCPs within a 5- year time horizon. IOn ~~addition~~this basis, suitable phase-in periods for the progressive implementation of the requirement to hold a certain level of ~~the clearing activity~~risk exposure in the accounts at Union CCPs should be foreseen. Once this is achieved, the relevant third-country CCPs may no longer be considered as of substantial systemic importance (Tier 2).

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 14

(14) Regulation (EU) 2019/834 of the European Parliament and of the Council34 amended Regulation (EU) No 648/2012 to introduce, inter alia, an exemption from reporting requirements for OTC derivative transactions between counterparties within a group, where at least one of the counterparties is a non-financial counterparty. That exemption has been introduced because intragroup transactions involving non-financial counterparties represent a relatively small fraction of all OTC derivative transactions and are used primarily for internal hedging within groups. As such, those transactions do not significantly contribute to systemic risk and interconnectedness with the rest of the financial system. The exemption for those transactions from reporting requirements has, however, limited the ability of ESMA, the ESRB and other authorities to clearly identify and assess the risks taken by non- financial counterparties. To ensure more visibility on intragroup transactions, considering their potential interconnectedness with the rest of the financial system and taking into account recent market developments, in particular strains on energy markets as a result of Russia’s unprovoked and unjustified aggression against Ukraine, that exemption should be removed. __________________ 34 Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 648/2012 as regards the clearing obligation, the suspension of the clearing obligation, the reporting requirements, the risk-mitigation techniques for OTC derivative contracts not cleared by a central counterparty, the registration and supervision of trade repositories and the requirements for trade repositories (OJ L 141, 28.5.2019, p. 42).

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 20

(20) Union CCPs face challenges in expanding their product offer and experience difficulties in bringing new products to the market. Those challenges and difficulties can be explained by certain provisions of Regulation (EU) No 648/2012 that render some authorisation procedures too long, complex and uncertain in their outcome. The process of authorising Union CCPs or extending their authorisation should therefore be simplified, while ensuring the appropriate involvement of ESMA and the college referred to in Article 18 of Regulation (EU) No 648/2012. First, to avoid significant, and potentially indefinite, delays when competent authorities assess the completeness of an application for an authorisation, the competent authority should swiftly acknowledge receipt of that application and quickly verify whether the CCP has provided the documents required for the assessment. To ensure that Union CCPs submit all required documents with their applications, ESMA should develop draft regulatory and implementing technical standards specifying which documents should be provided, and what information those documents should contain and in which format they should be submitted. Second, to ensure an efficient and concurrent assessment of applications, CCPs should be able to submit all documents via a central database where they should be shared instantaneously with the CCP’s competent authority, ESMA and the college. Thir. Second, a CCP’s competent authority, ESMA and the college should, during the assessment period, engage and ask the CCP any questions to ensure a swift, flexible, and cooperative process for a comprehensive review. To avoid duplication and unnecessary delays, all questions and subsequent clarifications should also be shared simultaneously between the CCP’s competent authority, ESMA and the college.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 21

(21) There is currently uncertainty as to when an additional service or activity is covered by a CCP’s existing authorisation. It is necessary to address that uncertainty and to ensure proportionality when the proposed additional service or activity does not increase the risks for the CCP. It is therefore necessary to lay down that applications in those cases should not undergo the full assessment procedure. For that reason, it should be specified which additional clearing services and activities are non-material, and thus do not increase the risks for a Union CCP, and should be approved through a non-objection procedure by that CCP’s competent authority. That non-objection procedure should be applied where the CCP ~~intends to clear one or more financial instruments belonging to the same~~adds a new currency in a classes of financial instruments for which it has been authorised to clear, provided such financial instruments are traded on a trading venue for which the CCP already provides clearing services or performs activities and the proposed additional clearing service or activity does not involve a payment in a new currency. That non-objection procedure should also be applied where the CCP adds a new Union currency in a class of financial instruments already covered by the CCP’s authorisation, or where the CCP adds one or more additional tenors to a class of financial instruments already covered by the CCP’s authorisation provided that the maturity range is not significantly extended. In addition, a CCP should also be able to ask its competent authority for talready covered by the CCP’s authorisation for which the CCP does not have in place the relevant payment facility, or where the CCP expands the list of eligible collateral to accept collateral with a different risk profile. The non- objection procedure toshould therefore apply where that CCP considers that the proposed additional service or activity would not increase its risks, in particular where the new clearing service or activity is similar to the services the CCP is already authorised to provide. The non-objection procedure should not require a separate opinion from ESMA and the college since such requirement would be disproportionate. ~~Instead~~Nevertheless, ESMA and the college should be ~~able to provi~~informed of the approvals granted under the non- objection procedure. Such information shall be included in~~put to the CCP’s competent authority through the joint supervisory team established for that CCP~~ the results of the review and evaluation of the CCP shared by the competent authority at least on an annual basis.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 28

(28) It is necessary to ensure a prompt exchange of information, knowledge sharing and effective cooperation between the authorities involved in the supervision of authorised CCPs, and in particular where a swift decision by a CCP’s competent authority is required. It is therefore appropriate to set up a joint supervisory team for each Union CCP to assist those supervisory authorities, including by ~~providing input to the CCP’s competent authority within the context of the non-objection procedure for extending a CCP’s existing authorisation,~~ assisting in establishing the frequency and depth of a CCP’s review and evaluation, and participating to on-site inspections. Considering that a CCP’s competent authority remains ultimately responsible for the final supervisory decisions, the joint supervisory teams should work under the auspices of the CCP’s competent authority for which the team is established and should be composed of staff members from the CCP’s competent authority, ESMA and certain members of the college. Other members of the college should also be able to request to participate justifying the request based on their assessment of the impact that the CCP's financial distress could have on the financial stability of their respective Member State.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 29

(29) To enhance the ability of relevant Union bodies and national competent authorities to have a comprehensive overview of market developments ~~relevant for clearing in the Union,~~and exposures to CCPs and 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~~excessive exposures to third-country CCPs, it is necessary to establish a cross-sectoral monitoring mechanism bringing together the relevant Union bodies, central banks of issue and national competent authorities involved in the supervision of Union CCPs, clearing members and clients. Such a Joint Monitoring Mechanism should be managed and chaired by ESMA as the Union authority involved in the supervision of Union CCPs and supervising systemically important third- country CCPs. Other participants should include representatives from the Commission, the EBA, EIOPA, the ESRB, ~~the ECB~~central banks of issue and the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/2013 as well as national competent authorities involved in the supervision of clearing members’ and clients’ compliance with this Regulation.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 46

(46) To ensure consistency of Regulation (EU) 2017/1131 of the European Parliament and of the Council38 with Regulation (EU) No 648/2012 and to preserve the integrity and stability of the internal market, it is necessary to lay down in Regulation (EU) 2017/1131 a uniform set of rules to address counterparty risk in ~~financial derivative~~ transactions performed by money market funds (MMF), when the transactions have been cleared by a CCP that is authorised or recognised under Regulation (EU) No 648/2012. As central clearing arrangements mitigate counterparty risk that is inherent in financial ~~derivative contract~~transactions, it is necessary to take into consideration whether a ~~derivative~~transaction has been centrally cleared by a CCP that is authorised or recognised under that Regulation, when determining the applicable counterparty risk limits. It is also necessary for regulatory and harmonisation purposes, to lift counterparty risk limits only where the counterparties use CCPs, including under indirect clearing arrangements, which are authorised or recognised in accordance with that Regulation, to provide clearing services to clearing members and their clients. __________________ 38 Regulation (EU) 2017/1131 of the European Parliament and of the Council of 14 June 2017 on money market funds (OJ L 169, 30.6.2017, p. 8).

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 47

(47) To ensure consistent harmonisation of rules and supervisory practice on applications for authorisation, extension of authorisation and model validations the active account requirement and the CCP participation requirements, the Commission should be empowered to adopt regulatory technical standards developed by ESMA with regard to the following: the documents CCPs are required to submit when applying for authorisation, extension of authorisation and validation of model changes; the proportion of ~~activity in~~risk exposure arising from the relevant derivative contracts that should be held in active accounts at Union CCPs and the calculation methodology to be used to calculate that proportion based on a risk-based metric; the scope and details of the reporting by Union clearing members and clients to their competent authorities on their clearing activity in third-country CCPs and whilst providing the mechanisms triggering a review of the values of the clearing thresholds following significant price fluctuations in the underlying class of OTC derivatives to also review the scope of the hedging exemption and thresholds for the clearing obligation to apply; and the elements to be considered when laying down the admission criteria to a CCP. The Commission should adopt those regulatory technical standards by means of delegated acts pursuant to Article 290 of the Treaty on the Functioning of the European Union (TFEU) and in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 50 a (new)

(50a) Efficient portability of client positions in the event of a clearing member default is key to ensuring a safe and competitive clearing system. However, the recent CPMI-IOSCO report on client clearing and portability identifies several regulatory barriers to efficient porting in certain jurisdictions. ESMA should therefore assess the regulatory barriers to porting in the Union and provide the Commission with a report, including recommendations for legislative amendments, if appropriate.

2023/07/07
Committee: ECON

Proposal for a regulation
Recital 50 b (new)

(50b) The Report on the Functioning of Regulation (EU) No 575/2013 with the related obligations under Regulation (EU) No 648/2012 jointly issued by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) in January 2017 identifies multiple potentially duplicative and inconsistent requirements for CCPs holding a banking license. Consequently, the report recommends a number of clarifications to avoid increased regulatory risk, unnecessary burdens and costs for monitoring by the competent authorities. The duplication of capital requirements identified in this report has not yet been fully addressed. Therefore, as recommended in the report, it should be clarified that CCPs authorised in accordance with Article 14 of Regulation (EU) 648/2012, are not required to set aside own funds for their activities where the incumbent risks are already covered through the CCP-specific financial resources referred to in Articles 41 to 44 of Regulation (EU) 648/2012. Whilst the Eurosystem is looking into the issue of convergent central bank access policies for Union CCPs, the central banks of issue of the Eurosystem under the lead of the ECB should on request of the European Parliament provide a report assessing the state of play and, if appropriate, provide recommendations how to ensure generalized central bank access for EMIR-authorized Union CCPs without the condition of maintaining a banking license.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 648/2012
Article 7 a – paragraph 1

1. Financial counterparties or a non- financial counterparties that are subject to the clearing obligation in accordance with Articles 4a and 10 and clear any of the categories of the derivative contracts referred to in paragraph 2 shall ~~clear at least a proportion of~~ensure that the majority of their risk exposure arising from such contracts is held at accounts at CCPs authorised under Article 14 by [insert date five years following entry into force of this Regulation]. This shall apply to any new contracts in the categories of derivatives contracts referred to in paragraph 1 that the Union market participants in scope enter into once this Regulation applies.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 648/2012
Article 7 a – paragraph 3

3. A financial counterparty or a non- financial counterparty that is subject to the obligation set out in paragraph 1 shall calculate its ~~activitie~~risk exposure based on DV1 and initial margin amounts arising from any new contracts in the categories of derivative contracts referred to in paragraph 1 at CCPs authorised under Article 14.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 648/2012
Article 7 a – paragraph 4 a (new)

(4a) The following activities provided by clearing members established in the Union shall be exempted from the calculation of the minimum risk exposure referred to in paragraph 1 until [insert date five years following entry into force of this Regulation]: (i) client clearing services. (ii) market making activities. Regarding the client clearing services exemption referred to in point i), a client trade mirrored on the side of the clearing member does not count towards the clearing member’s minimum activity calculated in accordance with paragraph 3. Such trades shall only count towards the threshold of the client. In alignment with the differentiation between the trading book and banking book under the fundamental review of the trading book (FRTB) framework, the market making exemption cannot be applied to market participants’ banking books, i.e., the asset and liability management activities, including any internal risk transfers from the banking book.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 648/2012
Article 7 a – paragraph 4 b (new)

(4b) Clearing members and clients that are subject to the clearing obligation in accordance with Articles 4a and 10 and clear any of the contracts listed in paragraph 2 shall prepare for the application of the regulatory technical standards referred to in paragraph 5 and the overall target specified in paragraph 1, by (a) setting up an operational account with a Union CCP by [insert the date = 3 months following entry into force of this Regulation] (b) clearing on average at least 10% of their maturity-weighted notional volume in the products specified in paragraph 2 with a CCP authorised under Article 14 by [insert date 12 months after the date of entry into force of this Regulation]. This activation target shall only cover new transactions and will be seamlessly replaced by the risk reduction targets to be defined under the regulatory technical standards referred to in paragraph 5.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 648/2012
Article 7 a – paragraph 5 – point a

(a) the ~~proportion of activity~~level of risk exposure in each category of the derivative contracts referred to in paragraph 2; t~~hat proportion~~o be held at Union CCPs in the time period between [insert date 24 months following entry into force of this Regulation] until [insert date 5 years following entry into force of this Regulation]; these risk exposure targets shall be set at a level that (i) results in a reduction in clearing in those derivative contracts at those Tier 2 CCPs offering services of substantial systemic importance for the financial stability of the Union or one or more of its Member States pursuant to Article 25(2c) and that ensures clearing in such derivative contracts is no longer of substantial systemic importance; and (ii) ensures that the majority of the overall risk exposure by Union market participants arising from new contracts referred to in paragraph 2 is held with CCPs authorised under Article 14 by [please insert the date = five years after the entry into force of this Regulation];

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 648/2012
Article 7 a – paragraph 5 – point b

(b) the risk-based methodology for calculation under paragraph 3.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 4

Regulation (EU) No 648/2012
Article 7 a – paragraph 5 – subparagraph 2

ESMA shall submit those draft regulatory technical standards to the Commission by … [PO: please insert the date = 12 months after the date of entry into force of this Regulation]. The first risk exposure target shall apply [insert date 24 months following entry into force of this Regulation].

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point a

Regulation (EU) No 648/2012
Article 9 – paragraph 1 – subparagraphs 3 and 4

~~(a) in paragraph 1, the third and fourth subparagraphs are~~ deleted;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 6 – introductory part

Regulation (EU) No 648/2012
Article 10 – paragraphs 2 a, 4 and 5

(6) in Article 10, paragraphs 2a to, 4 and 5 are replaced by the following:

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 6

Regulation (EU) No 648/2012
Article 10 – paragraph 3

3. In calculating the positions referred to in paragraph 1, the non- financial counterparty shall include all the OTC derivative contracts that are not cleared in a CCP authorised under Article 14 or recognised under Article 25 entered into by the non-financial counterparty which are not objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity of the non-financial counterparty.deleted

2023/07/07
Committee: ECON

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

Regulation (EU) No 648/2012
Article 14 – Paragraph 7

7. ESMA shall develop draft implementing technical standards specifying the electronic format of the application to be submitted to the central database for authorisation referred to in paragraph 1. ESMA shall submit those draft implementing technical standards to the Commission by … [PO: please insert the date = 12 months after the date of entry into force of this Regulation]. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.;deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b

Regulation (EU) No 648/2012
Article 17 – paragraph 1 – subparagraph 2

The CCP’s competent authority shall, within 2ten working days after such application has been received, acknowledge receipt of the application, stating to the CCP whether it contains the documents required pursuant to Article 14(6) and (7) or, where the CCP has applied for an extension of its authorisation, pursuant to Article 15(3) and (4). Any request for information from the CCP’s competent authority to the CCP shall occur during the risk assessment period as referred to in paragraph 3.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b

Regulation (EU) No 648/2012
Article 17 – paragraph 1 – subparagraph 3

Where the CCP’s competent authority determines that not all documents required pursuant to Article 14(6) and (7) or Article 15(3) and (4) have been submitted, it shall provide the CCP with guidance on and an appropriate deadline for the submission of missing documents. If the CCP does not comply with this deadline, the competent authority shall reject the CCP’s application.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point d

Regulation (EU) No 648/2012
Article 17 – paragraph 4 – – subparagraph 1 – point a

(a) complies with all the relevant requirements laid down in this Regulation relating to the changes referred to in the application for authorisation submitted by the CCP including, where applicable, for the provision of clearing services or activities for non- financial instruments; and

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point e

Regulation (EU) No 648/2012
Article 17 – paragraph 7

(e) paragraph 7 is replaced by the following: 7. ESMA shall maintain a central database providing access to the CCP’s competent authority, ESMA, and the members of the college for that CCP (‘registered recipients’), to all documents registered within the database for that CCP. The CCP shall submit the application referred to in Article 14, Article 15(1), second subparagraph, point (a), and Article 49 via that database. The registered recipients shall upload promptly all documents they receive from the CCP in relation to an application pursuant to paragraph 1 and the central database shall automatically inform the registered recipients when changes have been made to its content. The central database shall contain all documents provided by an applicant CCP under paragraph 1 and all other documents relevant for the assessment by the CCP’s competent authority, ESMA and the college. Members of the CCP Supervisory Committee shall also have access to the central database for the performance of their tasks pursuant to Article 24a(7). The Chair of the CCP Supervisory Committee may limit access to some of the documents for the members of the CCP Supervisory Committee referred to in Article 24a, points (c) and (d)(ii), where justified based on confidentiality concerns.;deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 1 – point a

(a) fulfils all of the following the conditions: (i) the CCP intends to clear one or more financial instruments belonging to the same classes of financial instruments for which it has been authorised to clear under Articles 14 or 15; (ii) to in point (i) are traded on a trading venue for which the CCP already provides clearing services or performs activities; and (iii) service or activity does not involve a payment in a new currency;deleted the financial instruments referred the proposed additional clearing

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 1 – point b

(b) adds a new ~~Union~~ currency in a class of financial instruments already covered by the CCP’s authorisation for which the CCP does not have in place the relevant payment facility; or

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 1 – point c

(c) ~~adds one or more additional tenors to a class of financial instruments already covered by the CCP’s authorisation provided that the maturity range is not significantly extended.~~includes offering a new settlement or delivery mechanism or service which involves establishing links with a different securities settlement system, CSD or payment system which the CCP did not previously use;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 1 – point d

(ca) it includes offering contracts that cannot be liquidated in the same manner, such as via direct offer or auction, or together with contracts already cleared by the CCP;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 2

2. TWhe ~~CCP’s competent authority may, after considering the input of the jo~~re the proposed additional clearintg supervisory team set up for that CCP pursuant to Article 23b, also decide to apply the non-objection procedure of this Article where a CCP so requests and where the proposed additional clearing service or activity does not fulfil any of the following conditionsce or activity fulfils any of the following conditions, it shall be considered a material change and subject to the procedure defined in Article 17:

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 2 – Point b

(b) it ~~includes offering contracts that cannot be liquidated~~ results in the CCP offering a service or performing an activity relating t~~he same manner, such as via direct offer or auction, or together with contracts already cleared by the CCP~~o a new category of financial instruments or a new type of products or a new type of transactions;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 2 – Point c

(c) it results in the CCP ~~needing to take into account material new contract specifications, such as significant extensions of the ranges of maturities or a new option exercise styles within a category of contracts~~offering a service or performing an activity for contracts traded on a trading venue, where the CCP was previously providing a service or performing an activity for these contracts traded on a bilateral basis only;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 2 – Point d

(d) it results in the ~~introduction of m~~CCP offering a service or performing an activity for contracts traded on a bilaterial ~~new risks, linked to the different characteristics of the assets referenced~~basis, where the CCP was previously providing a service or performing an activity for these contracts on a trading venue only;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 2 – Point e

(e) it includes offering a new settlement or delivery mechanism or service which involves establishing links with a different securities settlement system, CSD or payment system which the CCP did not previously use.deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 a – paragraph 2 – subparagraph 2 (new)

2a. Where a CCP intends to adopt a change that does not qualify as non- material pursuant to the first paragraph of this Article and does not qualify as material under paragraph 2 of this Article, such change shall be directly implemented by the CCP and shall not be subject to any of the procedures referred to in Article 17 and Article 17a.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 12

Regulation (EU) No 648/2012
Article 17 b – paragraph 1

A CCP’s competent authority shall submit in electronic format ~~via the central database referred to in Article 17(7)~~ a request for an opinion:

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 18

Regulation (EU) No 648/2012
Article 23c – paragraph 1 – subparagraph 2 – point c

(c) representatives of the Commission, the ESRB, the ~~ECB~~central bank of issue and the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance Council Regulation (EU) No 1024/2013.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 18

Regulation (EU) No 648/2012
Article 23c – paragraph 1 – subparagraph 2 – point d (new)

(c a) competent authorities;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point a

Regulation (EU) No 648/2012
Article 49a – paragraph 1 a – subparagraph 1

Where a CCP intends to adopt any significant change to the models referred to in paragraph 1, it shall submit an application for authorisation of such change in an electronic format ~~via the central database referred to in Article 17(7) where it shall be immediately shared with~~to the CCP’s competent authority, ESMA and the college. The CCP shall enclose an independent validation of the intended change to its application.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point a

Regulation (EU) No 648/2012
Article 49 – paragraph 1 a – subparagraph 2

Where a CCP considers that the change to the models referred to in paragraph 1 it intends to adopt is not significant as referred to in subparagraph 1g3 of this article, the CCP shall request that the application be subject to a non-objection procedure under paragraph 1b. In that case, the CCP may start applying such change before the decision of the CCP’s competent authority and ESMA pursuant to paragraph 1b.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point a

Regulation (EU) No 648/2012
Article 49 – paragraph 1 a – subparagraph 3

The CCP’s competent authority shall, in cooperation with ESMA, within 2 working days after such application has been received, acknowledge receipt of the application, confirming to the CCP that it contains the required documents. Where one of them concludes that the application does not contain the required documents, the application shall be rejected. A change shall be considered as non- significant where any of the following conditions is met: a) the change leads to a decrease or increase of the total pre-funded financial resources, including margin requirements, default fund and skin-in- the-game, greater than 10 % and lower than 20%; b) the methodology applied to assess liquidity risk is changed, leading to a decrease of the estimated total liquidity needs greater than 10 % and lower than 20%; c) the methodology applied to value collateral or calibrate collateral haircuts, is changed, such that the total value of collateral decreases by more than 10% but less than 20%; d) the CCP intends to offer a new clearing member access model, or to offer clearing services with a non-materially different risk profile and characteristics than the current ones, e) the list of eligible collateral is extended to accept collateral with a different risk profile: i) a new asset class; ii) new category of issuer, such as corporate or sovereign, or level of credit risk;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b

Regulation No 648/2012
Article 49 – paragraph 1 g – point a

(a) the change leads to a decrease or increase of the total pre-funded financial resources, including margin requirements, default fund and skin-in-the-game, greater than 1520 %;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b

Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point b

(b) the structure, structural elements or the margin parameters of the margin model are changed or a margin module is introduced, removed, or amended in a manner which leads to a decrease or increase of this margin module greater than 15 % at the CCP level;deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b

~~(c) the methodology used to compute portfolio offsets is changed leading to a decrease or increase of the total margin requirements for these financial instruments greater than 10 %;~~deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b

Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point d

(d) the methodology for defining and calibrating stress test scenarios for the purpose of determining default fund exposures, is changed, leading to a decrease or increase greater than 20 % of a default fund, or greater than 50 % of any individual default fund contribution;deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b

Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point f

(f) the methodology applied to value collateral, calibrate collateral haircut or set concentration limits, is changed, such that the total value of ~~non-~~cash collateral decreases or increases by more than 120 %; provided that the CCP’s proposed change does not fulfil any criteria for the extension of CCP’s authorisation specified in Article 2(1);

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b

Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point g

~~(g) any other change to the models that could have a material effect on the overall risk of the CCP.~~deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point c

Regulation (EU) No 648/2012
Article 49 – paragraph 5

ESMA shall, in close cooperation with the ESCB, develop draft regulatory technical standards specifying the list of required documents that shall accompany an application for validation pursuant to paragraph 1a and shall specify the information such documents shall contain to demonstrate that the CCP complies with all relevant requirements of this Regulation. When preparing the draft regulatory technical standards, ESMA shall take into account the following: i) existing documentation requirements and practices by the national competent authorities ii) the need to reduce CCPs time to market and the risk of extending the pre-filing phase which is not subject to timelines set out in this Regulation; iii) the need to ensure that the amount of information to be gathered is proportionate to the scope of the application by the CCP.

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point d

Regulation (EU) No 648/2012
Article 49 – paragraph 6

(d) the following paragraph 6 is added: ‘ 6. ESMA shall develop draft implementing technical standards specifying the electronic format of the application for validation referred to in paragraph 1a to be submitted to the central database. ESMA shall submit those draft implementing technical standards to the Commission by… [PO: please insert date = 12 months after the date of entry into force of this Regulation]. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.; ’deleted

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 37 – point a

Regulation (EU) No 648/2012
Article 85 – paragraph 1

1. By [PO: please insert the date =5 years after the date of entry into force of this Regulation] the Commission shall assess the application of this Regulation and prepare a general report. The report shall assess in particular whether the five- year risk diversification objective referred to in Article 7a has been met. The Commission shall submit that report to the European Parliament and to the Council, together with any appropriate proposals.;

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 37 – point b

Regulation No 648/2012
Article 85 – paragraph 1 d (new)

1b a. A new paragraph 1d is inserted: 'By [PO: please insert the date = 2 years after the entry into force of this Regulation], the European Commission, after having consulted the ECB and the relevant central banks of issue, shall provide a report to the European Parliament and the Council assessing level playing field and financial stability considerations in relation to generalized central bank access for EMIR-authorized Union CCPs without the condition of maintaining a banking license. In this context, the Commission shall also take into consideration the situation in third- country jurisdiction. If appropriate, the report shall be accompanied by a legislative proposal.'

2023/07/07
Committee: ECON

Proposal for a regulation
Article 1 – paragraph 1 – point 37 – point b a (new)

Regulation (EU) No 648/2012
Article 85 – paragraph 1 c (new)

(b a) A new paragraph 1c is inserted: 'By [PO: please insert the date = 2 years after the entry into force of this Regulation] ESMA shall submit a report to the Commission on the regulatory barriers and disincentives to porting in Union legislation. If appropriate the report shall be accompanied by a legislative proposal. The report shall review the porting-related requirements in other jurisdictions and take into account at least the following: - the modalities of obtaining client consent - customer due diligence requirements - treatment of affiliated entities within the same group

2023/07/07
Committee: ECON