33 Amendments of Martin HLAVÁČEK related to 2022/0403(COD)
Amendment 218 #
Proposal for a regulation
Recital 12
Recital 12
(12) To ensure that clients are aware of their options and can take an informed decision as where to clear their derivative contracts, clearing members and clients that provide clearing services in both Union and recognised third-country CCPs should inform their clients about the option to clear a derivative contract in a Union CCP so that clearing in those services identified as of substantial systemic importance is reduced in Tier 2 CCPs in order to ensure the financial stability of the Union. Clearing members must respect the wishes of the clients on where to clear the clients' derivatives.
Amendment 238 #
Proposal for a regulation
Recital 38
Recital 38
(38) To mitigate potential risks for the financial stability of the Union, or of one or more of its Member States, CCPs and clearing houses should not be allowed to be clearing members of other CCPs nor should CCPs be able to accept to have other CCPs as clearing members or indirect clearing members. This exclusion should not affect interoperability arrangements, or other arrangements such as cross- margining and sponsored-memberships or sponsored access, between CCPs.
Amendment 243 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50a) (51) To further enhance the attractiveness of CCPs established in the Union, the opening hours of TARGET2 should be extended beyond the current constraints. This will allow clearing members established in the Union to fulfil their margin obligations in EUR, lowering the current dependency on USD for margin calls occurring beyond the closing time of TARGET2.
Amendment 255 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Amendment 446 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e – introductory part
Article 1 – paragraph 1 – point 21 – point e – introductory part
Regulation (EU) No 648/2012
Article 25 – paragraph 7
Article 25 – paragraph 7
(e) the following paragraphs 7a, 7b, 7c and 7cd are added:
Amendment 447 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – subparagraph 1
Article 25 – paragraph 7 – subparagraph 1
7a. Where ESMA has not yet determined the tiering of a CCP or where ESMA has determined that all or some CCPs in a relevant third country are Tier 1 CCPs, the cooperation arrangements referred to in paragraph 7 shall take into account the risk the provision of clearing services by those CCPs entails and shall specify:
Amendment 448 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – subparagraph 3
Article 25 – paragraph 7 – subparagraph 3
(b) exceptionally, the mechanism for the exchange of information on a quarterly basis requiring detailed information covering the aspects referred to in paragraph 2a and in particular information on significant changes to risk models and parameters, extension of CCP activities and services and changes in the client account structure, with the aim to detect if a CCP is potentially close to becoming or is potentially likely to become systemically importantmonitor and detect risks for the financial stability of the Union or one or more of its Member States.
Amendment 449 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – subparagraph 3 – point c (new)
Article 25 – paragraph 7 – subparagraph 3 – point c (new)
(c a) the mechanism for prompt notification to ESMA by the third-country competent authority where a third- country CCP intends to extend and reduce its activities and services;
Amendment 451 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point f
Article 25 – paragraph 7 – point f
(f) the procedures for third-country authorities to assure the effective enforcement of decisions adopted by ESMA in accordance with Articles 25f, 25k(1), point i, 25j, 25k(1)(b), 25l, 25m and 25p;
Amendment 452 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point e
Article 25 – paragraph 7 – point e
(e) the procedures for third-country authorities to promptly inform ESMA of the following with a focus on aspects relevant for the Union or one or more of its Member Stcooperate with ESMA when drawing up recovery plans and any subsequent changes to such plans and the procedures for third-country authorities to cooperate with ESMA when recovery plans are activates:d
Amendment 454 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point e – point i
Article 25 – paragraph 7 – point e – point i
Amendment 455 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point e – point i i
Article 25 – paragraph 7 – point e – point i i
(ii) if a Tier 2 CCP intends to activate its recovery plan orthe procedures for third countries to promptly inform ESMA where the third- country authorities have determined that there are indications of an emerging crisis situation that could affect the operations of that CCP, in particular, its ability to provide clearing services or where the third-country authorities envisage to take a resolution action in the near future.
Amendment 456 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e a (new)
Article 1 – paragraph 1 – point 21 – point e a (new)
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point d
Article 25 – paragraph 7 – point d
(e a) 7d. Where ESMA has determined that at least one CCP in a relevant third country is a Tier 2 CCP, ESMA shall establish effective cooperation arrangements with the relevant resolution authority of that third country. The cooperation arrangements shall specify in relation to those Tier 2 CCPs at least the following: (a) the procedures for the third-country resolution authority to consult ESMA when drawing resolution plans and any subsequent material changes to such plans; (b) the procedures for the third-country resolution authority to inform ESMA when the resolution plan is activated and when the third-country resolution authority intends to deviate from the resolution plan.’;
Amendment 457 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 a (new)
Article 1 – paragraph 1 – point 21 a (new)
Regulation (EU) No 648/2012
Article 25a
Article 25a
(21 a) Article 25a is replaced by the following: "Article 25a Comparable compliance 1. A CCP referred to in Article 25(2b) may submit a reasoned request that ESMA assesses whether in its compliance with the applicable third-country framework, taking into account the provisions of the implementing act adopted in accordance with Article 25(6), that CCP may be deemed to satisfy compliance with the requirements set out in Article 16 and Titles IV and V. ESMA shall immediately transmit the request to the third-country CCP college. 2. The reasoned request referred to in paragraph 1 shall provide the factual basis for a finding of comparability and the reasons why compliance with the requirements applicable in the third country satisfies the requirements set out in Article 16 and Titles IV and V. 3. The Commission, in order to ensure that the assessment referred to in paragraph 1 effectively reflects the regulatory objectives of the requirements set out in Article 16 and Titles IV and V and the Union's interests as a whole, shall adopt a delegated act specifying the following: (a) the minimum elements to be assessed for the purposes of paragraph 1of this Article; (b) the modalities and conditions to carry out the assessment. The Commission shall adopt the delegated act referred to in the first subparagraph in accordance with Article 82 by 2 January 2021. be submitted either within the deadline set by ESMA in the notification informing the third-country CCP that it is not considered to be a Tier 1 CCP or at any moment after a third- country CCP has been recognised by ESMA as a Tier 2 CCP in accordance with Article 25(2b). 3. The reasoned request referred to in paragraph 1 shall: (a) specify the requirements for which the Tier 2 CCP requests comparable compliance; (b) provide the factual basis for a finding of comparability and the reasons why compliance with the requirements applicable in the third country satisfies the requirements set out in Article 16 and Titles IV and V; (c) specify the way in which the Tier 2 CCP complies with any conditions set out in the implementing act referred to in Article 25(6). (d) a statement from its competent authority confirming that the Tier 2 CCP is of good repute and standing; and (e) where necessary, with regard to the requirements set out in Article 16 and Title V of this Regulation, a translation of the relevant applicable third-country framework into a language commonly used in finance. 4. ESMA shall assess, within 30 working days of receipt of a reasoned request submitted in accordance with paragraph 1, whether that reasoned request is complete. ESMA shall set a deadline by which the Tier 2 CCP has to provide additional information where the request is incomplete. 5. ESMA shall assess whether the Tier 2 CCP’s compliance with the applicable third-country framework, following an outcomes-based and risk-based approach, is comparable to the requirements set out in Article 16 and Titles IV and V of this Regulation. ESMA shall also take into account the supervisory outcomes achieved by the relevant third-country competent authority, as well as the level and depth of cooperation by the relevant third-country competent authority with ESMA. 6. ESMA shall decide whether to grant comparable compliance for the requirements included in the reasoned request within 90 working days from the receipt of a complete reasoned request submitted in accordance with paragraph 4. 7. ESMA may postpone that decision where the reasoned request or the additional information referred to in paragraph 4 are not submitted in time and the assessment of that request could, as a result, delay ESMA’s decision on the recognition of the third-country CCP or the review of its recognition. 8. A Tier 2 CCP for which ESMA has not granted comparable compliance for one or more requirements may not submit a new reasoned request as referred to in paragraph 1 regarding those requirements, unless there has been a relevant change to the applicable third- country framework or to the way in which that CCP complies with that framework. 9. A Tier 2 CCP that has been granted comparable compliance shall notify ESMA of any change to its applicable third-country framework, to the way in which it complies with the applicable third-country framework and to its internal rules and procedures. ESMA shall inform the Commission of those notifications. 10. Where ESMA has granted comparable compliance to a Tier 2 CCP, ESMA shall review the decision on a regular basis. 11. ESMA shall withdraw comparable compliance from a Tier 2 CCP where ESMA finds that the CCP’s compliance with the applicable thirdcountry framework, following an outcomes-based and risk-based approach, is no longer comparable to the requirements set out in Article 16 and Titles IV and V of this Regulation. ESMA shall also take into account the supervisory outcomes achieved by the relevant third-country competent authority, as well as the level and depth of cooperation by the relevant third-country competent authority with ESMA.’ " Or. en (02012R0648-20220812)
Amendment 458 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 b (new)
Article 1 – paragraph 1 – point 21 b (new)
Regulation (EU) No 648/2012
Article 25f
Article 25f
(21 b) Article 25f is replaced by the following: " Article 25f Request for information 1. ESMA may by simple request or by decision require recognised CCPs and related third parties to whom those CCPs have outsourced operational functions or activities to provide all necessary information to enable ESMA to carry out its duties under this Regulation. 2. WThen sending a simple request for information information referred to in paragraph 1 may be of a periodic or one- off nature. 3. When requiring that information is provided under paragraph 1, ESMA shall indicate all of the following: (a) the reference to this Article as the legal basis of the request; (b) the purpose of the request; (c) the information required; (d) the time limit to provide the information; (e) inform the person from whom the information is requested that there is no obligation to provide the information but that in the case of a voluntary reply to the request the information provided must not be incorrect or misleading; (f) the fine provided for in Article 25j in conjunction with point (a) of Section V of Annex III, where the answers to questions asked are incorrect or misleading. 3. When requiring that information is provided under paragraph 1 by decision, ESMA shall indicate all of the following: (a) the reference to this Article as the legal basis of the request; (b) the purpose of the request; (c) the information required; (d) the time limit to provide the informationwhere the information is of a periodic nature, the periodicity at which the information should be provided; (ef) the periodic penalty payments provided for in Article 25k where the production of the required information is incomplete; (f(g) the fine provided for in Article 25j in conjunction with point (a) of Section V of Annex III, for failing to provide the required information or where the answers to questions asked are incorrect or misleading; and (g) the right to appeal the decision before ESMA's Board of Appeal and to have the decision reviewed by the Court of Justice of the European Union (‘Court of Justice’) in accordance with Articles 60 and 61 of Regulation (EU) No 1095/2010. 4. The persons referred to in paragraph 1 or their representatives and, in the case of legal persons or associations having no legal personality, the persons authorised to represent them by law or by their constitution shall supply the information requested. Lawyers duly authorised to act may supply the information on behalf of their clients. The latter shall remain fully responsible if the information supplied is incomplete, incorrect or misleading. 5. ESMA shall, without delay, send a copy of the simple request or of its decisionrequest to the relevant third-country competent authority where the persons referred to in paragraph 1 concerned by the request for information are domiciled or established. " Or. en (02012R0648-20220812)
Amendment 459 #
Proposal for a regulation
Article 1 – paragraph 1 – point 21 c (new)
Article 1 – paragraph 1 – point 21 c (new)
Regulation (EU) No 648/2012
Article 25fa (new)
Article 25fa (new)
Amendment 461 #
Proposal for a regulation
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Regulation (EU) No 648/2012
Article 26
Article 26
1. A CCP shall have robust governance arrangements, which include a clear organisational structure with well- defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks to which it is or might be exposed, and adequate internal control mechanisms, including sound administrative and accounting procedures. AWithout prejudice to interoperability arrangements, or other arrangements such as cross- margining and sponsored-memberships or sponsored access, between CCPs, a CCP shall not be or become a clearing member, a client, or establish indirect clearing arrangements with a clearing member with the aim to undertake clearing activities at a CCP.;
Amendment 463 #
Proposal for a regulation
Article 1 – paragraph 1 – point 29 – point a
Article 1 – paragraph 1 – point 29 – point a
Regulation (EU) No 648/2012
Article 37
Article 37
1. A CCP shall establish, where relevant per type of product cleared, the categories of admissible clearing members and the admission criteria, upon the advice of the risk committee pursuant to Article 28(3). Such criteria shall be non- discriminatory, transparent and objective so as to ensure fair and open access to the CCP and shall ensure that clearing members have sufficient financial resources and operational capacity to meet the obligations arising from participation in a CCP. Criteria that restrict access shall be permitted only to the extent that their objective is to control the risk for the CCP. TWithout prejudice to interoperability arrangements, or other arrangements such as cross- margining and sponsored- memberships or sponsored access, between CCPs, the criteria shall ensure that CCPs or clearing houses cannot be clearing members, directly or indirectly, of the CCP.;
Amendment 470 #
Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point a a (new)
Article 1 – paragraph 1 – point 30 – point a a (new)
Regulation (EU) No 648/2012
Article 38 – paragraph 7
Article 38 – paragraph 7
(a a) "7. A CCP shall provide its clearing members with information on the initial margin models it uses. That information shall: (a) clearly explain the design of the initial margin models and how ithey operates; (b) clearly describe the key assumptions and limitations of the initial margin model and the circumstances under which those assumptions are no longer valid; (c) be documented. " Or. en (02012R0648-20220812)
Amendment 482 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 – point a
Article 1 – paragraph 1 – point 33 – point a
Regulation (EU) No 648/2012
Article 46 – paragraph 1
Article 46 – paragraph 1
1. A CCP shall accept highly liquid collateral with minimal credit and market risk to cover its initial and ongoing exposure to its clearing members. A CCP may accept public guarantees or public bank or uncollateralised commercial bank guarantees, provided that they are unconditionally available upon request within the liquidation period referred to in Article 41. Where bank guarantees are provided to a CCP, that CCP shall take them into account when calculating its exposure to the bank that is also a clearing member. The CCP shall apply adequate haircuts to asset values and guarantees to reflect the potential for their value to decline over the interval between their last revaluation and the time by which they can reasonably be assumed to be liquidated. It shall take into account the liquidity risk following the default of a market participant and the concentration risk on certain assets that may result in establishing the acceptable collateral and the relevant haircuts. When revising the level of the haircuts it applies to the assets it accepts as collateral, the CCP shall take into account any potential procyclicality effects of such revisions.;
Amendment 487 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 a (new)
Article 1 – paragraph 1 – point 33 a (new)
Regulation (EU) No 648/2012
Article 48 – paragraph 6
Article 48 – paragraph 6
(33 a) Paragraph 6 is amended: "6. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s client in accordance with Article 39(3), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of the client to another clearing member designated by the client, on the client’s request or unless the client objects before the transfer of assets and positions is concluded and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept these assets and positions only where it has previously entered into a contractual relationship with the client by which it has committed itself to do so. When designating a clearing member, the client shall contractually designate an alternative clearing member to be used in case their positions need to be transferred in the event of default. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of the client. " Or. en (02012R0648-20220812)
Amendment 488 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 b (new)
Article 1 – paragraph 1 – point 33 b (new)
Regulation (EU) No 648/2012
Article 48 – paragraph 6
Article 48 – paragraph 6
(33 b) A subparagraph is added to Article 48(6) "6. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s client in accordance with Article 39(3), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of the client to another clearing member designated by the client, on the client’s request and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept these assets and positions only where it has previously entered into a contractual relationship with the client by which it has committed itself to do so. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of the client. client. a. In the case of default of an existing clearing member and for the purposes of porting clients from the defaulting clearing members towards an alternative clearing member, such alternative clearing member, the client subject to porting and the CCP shall be temporary waived from the requirements of Directive (EU) 2015/849, Directive (EU) 2018/843 and Directive (EU) 2019/1153. The alternative clearing member shall we temporarily waived from the requirements of capital for clearing members towards clients under Regulation (EU) No 575/2013. " Or. en (02012R0648-20220812)
Amendment 489 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 c (new)
Article 1 – paragraph 1 – point 33 c (new)
Regulation (EU) No 648/2012
Article 47 – paragraph 9 (new)
Article 47 – paragraph 9 (new)
Amendment 490 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 -a (new)
Article 1 – paragraph 1 – point 34 -a (new)
Regulation (EU) No 648/2012
Article 48 – paragraph 5
Article 48 – paragraph 5
(34 a) "5. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s clients in accordance with Article 39(2), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of its clients to another clearing member designated by all of those clients, on their request or unless all clients object before the transfer of assets and positions is concluded and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept those assets and positions only where it has previously entered into a contractual relationship with the clients by which it has committed itself to do so. When designating a clearing member, clients shall contractually designate an alternative clearing member to be used in case their positions need to be transferred in the event of default. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of its clients. " Or. en (02012R0648-20220812)
Amendment 495 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point a
Article 1 – paragraph 1 – point 34 – point a
Regulation (EU) No 648/2012
Article 49 – paragraph 1 a – subparagraph 2
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 paragraph 1gin the below list, 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. A change shall be considered as non- significant where one of the following conditions is met: a) the change leads to a decrease or increase of the margin requirements greater than 10% and lower than 20%; b) 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, c) The list of eligible collateral is extended to accept collateral with a materially different risk profile: a. new asset class; b. new category of issuer, such as corporate or sovereign, or level of credit risk.
Amendment 502 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point a
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 %;
Amendment 506 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point b
Article 49 – paragraph 1 g – point b
Amendment 508 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point c
Article 49 – paragraph 1 g – point c
Amendment 511 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point d
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;
Amendment 513 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point e
Article 49 – paragraph 1 g – point e
(e) the methodology applied to assess liquidity risk and monitor concentration risk, is changed, leading to a decrease or increase of the estimated liquidity needs in any currency greater than 20 % or the total liquidity needs greater than 10 %;
Amendment 515 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point f
Article 49 – paragraph 1 g – point f
(f) the methodology applied to value collateral, or 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);
Amendment 517 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point g
Article 49 – paragraph 1 g – point g
Amendment 523 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point d a (new)
Article 1 – paragraph 1 – point 34 – point d a (new)
Regulation (EU) No 648/2012
Article 49 – paragraph 7 (new)
Article 49 – paragraph 7 (new)
(d a) the following paragraph 7 is added: Where a CCP intends to adopt a change that does not qualify as non-significant pursuant to paragraph 1a of Article 49 and does not qualify significant under paragraph 1g of Article 49, such change shall be directly implemented by the CCP and shall not be subject to the procedures referred to in paragraph 49.