[ParlTrack]

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, a~~ccounts with a minimum level of activity~~n operational account at 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 systemic importance~~improve EU players’ operational resilience. It will de facto trigger a gradual relocation of trades that are today cleared in those clearing services by those Tier 2 CCPs towards EU CCPs, for EU players with no specific clearing needs that cannot be fulfilled in the EU both in terms of liquidity and clearing offering. ESMA should further define the operational criteria of this operational account requirement so that it results in an improvement of EU players’ operational resilience and in a way as to not alter the normal conduct of business and hedging strategies of those counterparties.

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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 years. In addition, suitable phase-in periods for the progressive implementation of the requirement to hold a certain level of the clearing activity in the accounts at Union CCPs should be foreseen.deleted

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

Proposal for a regulation
Recital 18 a (new)

(18a) To avoid market fragmentation and to ensure a global level playing field for counterparties established in the Union, international regulatory convergence should also be ensured with regard to risk-management procedures for classes of OTC derivatives that are not subject to equivalent margin requirements. In particular, acknowledging the fact that in some relevant jurisdictions single-stock equity options and index options are not subject to equivalent margin requirements, those products should be exempted from margin requirements. This exemption should be ended should these relevant jurisdictions become subject to equivalent margin requirements.

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

Proposal for a regulation
Recital 30

(30) 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. ESMA might institute a breach of Union law procedure pursuant to Article 17 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council37 ,where, on the basis of the information received as part of the Joint Monitoring Mechanism and following the discussions held therein, ESMA considers that competent authorities fail to ensure clearing members’ and clients’ compliance with the requirement to clear at least a proportion of identified contracts at accounts at Union CCPs, or where ESMA identifies a risk to the financial stability of the Union due to an alleged breach or non-application of Union law. Before instituting such breach of Union law procedure, ESMA might issue guidelines and recommendations pursuant to Article 16 of that Regulation. Where, on the basis of the information received as part of the Joint Monitoring Mechanism and following the discussions held therein, ESMA considers that compliance with the requirement to clear at least a proportion of identified contracts at accounts at Union CCPs does not effectively ensure the reduction of Union clearing members’ and clients’ excessive exposure to Tier 2 CCPs, it should review and propose amending the relevant Commission Delegated Regulation specifying further that requirement, proposing to set, where necessary, an appropriate adaptation period. __________________ 37 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84).

2023/07/07
Committee: ECON

Erik POULSEN, Gilles BOYER, Stéphanie YON-COURTIN, Engin EROGLU, Ondřej KOVAŘÍK, Martin HLAVÁČEK

Proposal for a regulation
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.

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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~~and 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 such contracts at accounts at CCPs authorised under Article 14.~~ have, for such contracts, at least one permanently operational account at a CCPs authorised under Article 14, where clearing services for the derivatives concerned are provided by CCPs authorised under Article 14. Within [PO : please insert the date xx months after the date of entry into force of this regulation] ESMA shall, in cooperation with the EBA, EIOPA and ESRB, and after consulting the ESCB, develop draft regulatory technical standards specifying the criteria of “permanent operationality” to be fulfilled in order for the account requirement referred to in paragraph 1 to be deemed fulfilled , where appropriate differentiating between different sub- categories of the derivatives contracts concerned.

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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 activities in the categories of derivative contracts referred to in paragraph 1 at CCPs authorised under Article 14.deleted

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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

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

4. A financial counterparty or a non- financial counterparty that is subject to the obligation set out in paragraph 1 shall report to ~~the~~its competent authority ~~of the CCP or CCPs it uses the outcome of the calculation referred to in paragraph 2 on an annual basis~~, confirming ~~their~~its compliance with the obligation set out in that paragraph. The ~~CCP’s~~ competent authority shall immediately transmit that information to ESMA and the Joint Monitoring Mechanism referred to in Article 23c.

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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

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

5. ESMA shall, in cooperation with the EBA, EIOPA and ESRB and after consulting the ESCB, develop draft regulatory technical standards specifying: (a) category of the derivative contracts referred to in paragraph 2; that proportion shall be set at a level that 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; (b) the methodology for calculation under paragraph 3. 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]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.deleted the proportion of activity in each

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

Proposal for a regulation
Article 1 – paragraph 1 – point 16 a (new)

Regulation (EU) No 648/2012
Article 22 (new)

(16 a) Article 22 is amended as follows: "Article 22 Competent authority 1. Each Member State shall designate the competent authority responsible for carrying out the duties resulting from this Regulation for the authorisation and supervision of CCPs established in its territory that are not Tier2 CCP according to article 22a and shall inform the Commission and ESMA thereof. Where a Member State designates more than one competent authority, it shall clearly determine the respective roles and shall designate a single authority to be responsible for coordinating cooperation and the exchange of information with the Commission, ESMA, other Member States’ competent authorities, EBA and the relevant members of the ESCB, in accordance with Articles 23, 24, 83 and 84. 2. Each Member State shall ensure that the competent authority has the supervisory and investigatory powers necessary for the exercise of its functions. 3. Each Member State shall ensure that appropriate administrative measures, in conformity with national law, can be taken or imposed against the natural or legal persons responsible for non-compliance with this Regulation.Those measures shall be effective, proportionate and dissuasive and may include requests for remedial action within a set time frame. 4. ESMA shall publish on its website a list of the competent authorities designated in accordance with paragraph 1. " Or. en (Document 32012R0648)

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

Proposal for a regulation
Article 1 – paragraph 1 – point 16 b (new)

Regulation (EU) No 648/2012
Article 22a (new)

(16 b) The following article is inserted: Article 22a 1. ESMA shall be responsible for carrying out its duties under this Regulation for the authorization and supervision of CCPs established in the Union that have been determined as systemically important (Tier2 CCP). ESMA shall ensure on an ongoing basis the compliance by systemically important CCPs established in the Union with Articles 7 to 8, Article 14to 17b, articles 20, 21 and 24 and Titles IV and V. ESMA should be empowered with supervisory, investigatory and enforcement powers necessary for the exercise of its functions under this regulation. 2. The powers referred to in paragraph 3 shall include at least powers to: (a) authorise a systemically important CCP or a particular clearing service or activity; (b) supervise the systemically important CCP’s compliance with the requirements laid down in this Regulation and adopt decisions in relation to Articles 7 to 8, 14 to 17b, 20, 21, and 24 and Titles IV and V; (c) have access to any document or other data from the systemically important CCP in a form which ESMA considers relevant for the performance of its duties and to receive or take a copy of such documents or data; (d) require or demand the provision of information from any person related to the systemically important CCP and if necessary to summon and question a person with a view to obtaining information; (e) carry out joint on-site inspections or investigations with the systemically important CCP competent authority; (f) require the auditors of authorised systemically important CCPs to provide information; (g) require, the temporary or permanent cessation of any practice or conduct that ESMA considers to be contrary to the provisions of this Regulation or where such practice or conduct may have an adverse effect on the systemically important CCPs cross-border activities or a possible cross-border impact; (h) require the removal of a natural person from the management board of an authorised systemically important CCP; (i) impose fines and periodic penalty payments; (j) issue public notices; and (k) withdraw the authorisation of the systemically important CCP, or its authorisation for a particular service, activity or class of financial instruments or non-financial contract. 3. ESMA shall, after consulting the ESRB and the central banks of issue determine whether a CCP established in the Union is systemically important or likely to become systemically important for the financial stability of the Union or of one or more of its Member States (Tier 2 CCP) by taking into account all of the following criteria: (a) the nature, size and complexity of the CCP's business in the Union, and outside the Union (b) the effect that the failure of or a disruption to the CCP would have on financial markets, including the liquidity of the markets served; financial institutions; the broader financial system; or the financial stability of the Union or of one or more of its Member States; (c) the CCP's clearing membership structure including, to the extent the information is available, the structure of its clearing members' network of clients and indirect clients, established in the Union; (d) the extent to which alternative clearing services provided by other CCPs exist for clearing members and, to the extent the information is available, their clients and indirect clients established in the Union; (e) the CCP's relationships, interdependencies, or other interactions with other financial market infrastructures, other financial institutions and the broader financial system to the extent that that is likely to have an impact on the financial stability of the Union or one or more of its Member States. The Commission shall adopt a delegated act in accordance with Article 82 to specify further the criteria set out in the first subparagraph by 2 January 20xx. ESMA shall, after conducting the assessment referred to in the first subparagraph, inform the CCP whether it has not been determined as systemically important or likely to become systemically important in accordance with the first subparagraph and is therefore a Tier 1 CCP or whether it has been determined as a Tier 2 CCP within 30 working days of the determination that that CCP's application is complete.’

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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

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

(i) the overall exposures ~~and reduction of exposures~~ to substantially systemically important clearing services identified pursuant to Article 25(2c);

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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

Regulation (EU) No 648/2012
Article 23c – paragraph 4

4. ESMA shall act in accordance with Article 17 of Regulation (EU) No 1095/2010 where, on the basis of the information received as part of the Joint Monitoring Mechanism and following the discussions held therein: (a) it considers that competent authorities fail to ensure clearing members’ and clients’ compliance with the requirement set out in Article 7a; (b) stability of the Union due to an alleged breach or non-application of Union law. Before acting in accordance with the first subparagraph, ESMA may issue guidelines or recommendations pursuant to Article 16 of Regulation (EU) No 1095/2010.deleted it identifies a risk to the financial

2023/07/07
Committee: ECON

Stéphanie YON-COURTIN, Gilles BOYER

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

Regulation (EU) No 648/2012
Article 23c – paragraph 5

5. Where ESMA, on the basis of the information received as part of the Joint Monitoring Mechanism and following the discussions held therein, considers that compliance with the requirement set out in Article 7a does not effectively ensure the reduction of Union clearing members’ and clients’ excessive exposure to Tier 2 CCPs, it shall review the regulatory technical standards referred to in Article 7a(5), setting, where necessary, an appropriate adaptation period which shall not exceed 12 months.;deleted

2023/07/07
Committee: ECON

Erik POULSEN, Gilles BOYER, Stéphanie YON-COURTIN, Ondřej KOVAŘÍK, Martin HLAVÁČEK

Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e

Regulation (EU) No 648/2012
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 St~~cooperate 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

2023/07/07
Committee: ECON

Erik POULSEN, Gilles BOYER, Stéphanie YON-COURTIN, Ondřej KOVAŘÍK, Martin HLAVÁČEK

Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e

Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point e – point i

~~(i) the establishment of recovery plans and resolution plans and any subsequent material changes to such plans;~~deleted

2023/07/07
Committee: ECON

Erik POULSEN, Gilles BOYER, Stéphanie YON-COURTIN, Ondřej KOVAŘÍK, Martin HLAVÁČEK

Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e

Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point e – point i i

(ii) ~~if a Tier 2 CCP intends to activate its recovery plan or~~the 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.

2023/07/07
Committee: ECON

Erik POULSEN, Gilles BOYER, Stéphanie YON-COURTIN, Ondřej KOVAŘÍK, Martin HLAVÁČEK

Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e a (new)

Regulation (EU) No 648/2012
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.’;

2023/07/07
Committee: ECON

18 Amendments of Gilles BOYER related to 2022/0403(COD)

ParlTrack - 2011-2024