Activities of Claude GRUFFAT related to 2022/0403(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets
Amendments (152)
Amendment 199 #
Proposal for a regulation
Recital 5
Recital 5
Amendment 200 #
Proposal for a regulation
Recital 6
Recital 6
Amendment 202 #
Proposal for a regulation
Recital 7
Recital 7
Amendment 203 #
Proposal for a regulation
Recital 9
Recital 9
Amendment 212 #
Proposal for a regulation
Recital 11
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 thatNonetheless, to be effective, the minimum level of clearing activity maintained in accounts at Union CCPs should not be lower than 15% of those costs are passed on to non-financial firmsunterparty total clearing activity. 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.
Amendment 215 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) To reflect the high risks posed by EU banks overreliance on third-country CCPs, it is also necessary to adapt the prudential framework and ensure that those risks are adequately taken into account to safeguard the financial stability of the Union and its Member States. Additional own funds requirements should therefore be imposed on banks’ large exposures to Tier 2 CCPs.
Amendment 216 #
Proposal for a regulation
Recital 11 b (new)
Recital 11 b (new)
(11b) A number of public entities, such as central government, local authorities or other public sector entities clear on a voluntary basis. When using clearing services, public entities should, as a principle, use EU CCPs clearing services. In its letter of 1st April 2022, ESMA stressed that the modalities of public entities participation to CCPs vary across Member States. In particular, ESMA identified diverging practices regarding the calculation of the exposures of public entities to EU CCPs and their contributions to the financial resources of the CCP. Therefore, ESMA should be invited to work on the further harmonisation and coordination regarding public entities’ clearing activities.
Amendment 219 #
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. Such obligation to inform should be distinct from the active account requirement.
Amendment 220 #
Proposal for a regulation
Recital 13 a (new)
Recital 13 a (new)
(13a) Over the past years, the supervisory community has been raising concerns about the data quality of the reporting made by financial and non- financial counterparties in accordance with Regulation (EU) No 648/2012. Entities subject to the reporting obligation in accordance to this regulation should exercise due diligence by applying data quality checks before submitting their data. Competent authorities should be able to adopt appropriate sanctions in case of infringements of this due diligence requirement.
Amendment 227 #
Proposal for a regulation
Recital 21
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 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 the non- objection procedure to 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, ESMA and the college should be able to provide input to the CCP’s competent authority through the joint supervisory team established for that CCP.
Amendment 228 #
Proposal for a regulation
Recital 22
Recital 22
(22) To fosthe clearing landscape in the Union has undergone major changes since 2019, when amending regulations to Regulation (EU) No 1095/2010 and Regulation (EU) No 648/2012 were a cooperative supervisiondopted. Contrary to initial expectations, clearing activities have not yet been relocated in the EU. However, the requirement for financial and non- financial counterparties to hold active accounts in EU CCPs, coupled with an improved attractiveness of EU CCPs on an ongoing basis, the college should issue an opinion where a competent authority considers withdrawing a CCP’s authorisation and when a competent authority conducts the annual review and evaluation of that, are expected to trigger a significant increase of clearing activities in EU CCPs. The increase of clearing activities in the EU makes necessary a more coordinated and integrated approach to the supervision of EU CCPs. ESMA should therefore be the direct supervisor of all EU CCPs, and enhanced cooperation and integration between all relevant authorities is necessary to ensure that risks concentrated in EU CCPs are adequately monitored and managed, in order to minimise systemic risk and spill-over effects across Member States. Empowering ESMA with a direct supervisory role vis-a-vis EU CCPs requires adapting the existing supervisory framework under Regulation (EU) No 648/2012 , providing ESMA with decision-making powers over EU CCPs, but also by clarifying how these new powers would interact with the supervisory role of the national competent authorities. Under a new and more integrated approach, relevant supervisory decisions should be drafted and adopted by ESMA, having taken into account the opinion of the college. The competent authority of the CCP may be requested by ESMA to assist with drafting decisions, the verification of activities of the CCP, and the day-to-day assessments. ESMA should be empowered to delegate specific supervisory tasks to competent authorities. ESMA should be in charge of coordinating the joint supervisory activities, including in relation to on-site inspections of EU CCPs. The change in the approach should also cover the annual reviews.
Amendment 229 #
Proposal for a regulation
Recital 23
Recital 23
Amendment 230 #
Proposal for a regulation
Recital 24
Recital 24
Amendment 232 #
Proposal for a regulation
Recital 26
Recital 26
(26) ESMA should have the means to identify potential risks to the Union’s financial stability. ESMA should therefore, in cooperation with the EBA, EIOPA, ESRB 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 1024/201336 , identify the interconnections and interdependencies between different CCPs and legal persons, including shared clearing members, clients and indirect clients, shared material service providers, shared material liquidity providers, cross-collateral arrangements, cross-default provisions and cross-CCP netting, cross-guarantee agreements and risks transfers and back-to-back trading arrangements. __________________ 36 […]
Amendment 233 #
Proposal for a regulation
Recital 28
Recital 28
(28) It is necessary to ensure a prompt exchange of information, knowledge sharing and effective cooperation between the authorities involved inWith ESMA becoming the supervisionor of authorisedEU CCPs, and in particular where a swift decision by a CCP’s competent authority is required. Iit 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 authorityESMA 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 authoritybe composed of staff members from the competent authority of the member State where the CCP is located, 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.
Amendment 237 #
Proposal for a regulation
Recital 36
Recital 36
(36) Where recognition is provided under Article 25(2b) of Regulation (EU) No 648/2012, considering that those CCPone or more of those CCPs clearing services are of systemic importance for the Union or one or more of its Member States, the cooperation arrangements between ESMA and the relevant third-country authorities should cover the exchange of information for a broader range of information and with increased frequency. In that case, the cooperation arrangements should also entail procedures to ensure such a Tier 2 CCP is supervised pursuant to Article 25 of that Regulation. ESMA should ensure it can obtain all information necessary to fulfil its duties under that Regulation, including information necessary to ensure compliance with Article 25(2b) of that Regulation and to ensure that information is shared where a CCP has been granted, partially or fully, comparable compliance. To enable ESMA to carry out full and effective supervision of Tier 2 CCPs, it should be clarified that those CCPs should provide ESMA with information periodically.
Amendment 245 #
Proposal for a regulation
Article 1 – paragraph 1 – point -1a(new)
Article 1 – paragraph 1 – point -1a(new)
Regulation (EU) No 648/2012
Article 1 – paragraph 6 a (new)
Article 1 – paragraph 6 a (new)
Amendment 246 #
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EU) No 648/2012
Article 3
Article 3
Amendment 248 #
Proposal for a regulation
Article 1 – paragraph 1 – point 2 a (new)
Article 1 – paragraph 1 – point 2 a (new)
Regulation (EU) No 648/2012
Article 4 a – paragraph 1– subparagraph 1
Article 4 a – paragraph 1– subparagraph 1
(2a) Article 4a is amended as follows: (a) The first subparagraph of paragraph 1 is replaced by the following: 1. A financial counterparty taking positions in OTC derivative contracts may calculate, annually, the average of the three highest month-end averages positions over the previous 12 months in accordance with paragraph 3. (b) In paragraph 2, the ‘aggregate month-end average position for the previous 12 months’ is replaced by the ‘average of the three highest month-end averages positions over the previous 12 months’
Amendment 249 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) No 648/2012
Article 4 a − paragraph 3 − subparagraph 1
Article 4 a − paragraph 3 − subparagraph 1
Amendment 251 #
Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Regulation (EU) No 648/2012
Article 6 − paragraph 2 − subparagraph f a (new)
Article 6 − paragraph 2 − subparagraph f a (new)
(3a) in Article 6(2), the following point is added: (fa) the clearing rate for derivatives contracts concluded in the EU, on aggregate and for different asset classes
Amendment 262 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 2 − point c a (new)
Article 7 a – paragraph 2 − point c a (new)
(ca) any other categories of derivatives contracts that have been identified by ESMA as being of substantial systemic importance for the financial stability of the Union or one or more of its Member States pursuant to Article 25(2c).
Amendment 266 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 3 – introductory part
Article 7 a – paragraph 3 – introductory part
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 14.2 at :
Amendment 267 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 3 – point a (new)
Article 7 a – paragraph 3 – point a (new)
(a) CCPs authorised under Article 14.
Amendment 268 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 3 – point b (new)
Article 7 a – paragraph 3 – point b (new)
(b) CCPs recognised under Article 25.
Amendment 270 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 4
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 competent authority of the CCP or CCPs it usesESMA the outcome of the calculation referred to in paragraph 23 on an annual quarterly basis, confirming their compliance with the obligation set out in that paragraph. The CCP’s competent authority 1. ESMA shall immediately transmit that information to ESMA and the Joint Monitoring Mechanism referred to in Article 23c.
Amendment 276 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 – paragraph 5 − point a
Article 7 – paragraph 5 − point a
(a) the proportion of activity in each 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;
Amendment 278 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 − paragraph 5 − point b
Article 7 − paragraph 5 − point b
(b) the methodology for calculation under paragraph 3, including for calculation of proportions of activity of individual financial institutions.
Amendment 280 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 – paragraph 5 − point b a (new)
Article 7 – paragraph 5 − point b a (new)
(ba) the phase-in period of the active account requirement, allowing for gradual implementation in order to avoid market distortions;
Amendment 281 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 5 – subparagraph 1 a (new)
Article 7 a – paragraph 5 – subparagraph 1 a (new)
For the purpose of point (a), ESMA shall ensure that the initial proportion shall not be lower than 15% and 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). This proportion shall be reviewed annually and be increased, as appropriate, to ensure that clearing in any derivative contracts is no longer of substantial systemic importance by 2029.
Amendment 283 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 5 − subparagraph 2
Article 7 a – paragraph 5 − subparagraph 2
ESMA shall submit those draft regulatory technical standards to the Commission by … [PO: please insert the date = 12six months after the date of entry into force of this Regulation].
Amendment 284 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
(5a) ESMA shall, in cooperation with the EBA, EIOPA and ESRB and after consulting the ESCB, develop draft implementing technical standards specifying the format of the information to be submitted to the competent authorities referred to in paragraph 4. ESMA shall submit those draft implementing technical standards to the Commission by [PO: please insert the date = 6 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.
Amendment 290 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 b – paragraph 2 – subparagraph 1 – introductory part
Article 7 b – paragraph 2 – subparagraph 1 – introductory part
Clearing members and clients that are established in the Union or are part of a group subject to consolidated supervision in the Union and that clear in a CCP authorised under Article 14 or recognised under Article 25, shall report to their competent authorityESMA the scope of their clearing activity in such CCP on an annual quarterly basis, specifying all of the following:
Amendment 291 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 b − paragraph 2 − subparagraph 2
Article 7 b − paragraph 2 − subparagraph 2
Amendment 292 #
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 b – paragraph 4 − subparagraph 1
Article 7 b – paragraph 4 − subparagraph 1
ESMA shall develop draft implementing technical standards specifying the format of the information to be submitted to the competent authority referred to inin accordance with paragraph 2.
Amendment 296 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point b – indent 2
Article 1 – paragraph 1 – point 5 – point b – indent 2
Amendment 297 #
Proposal for a regulation
Article 1 – paragraph 1 – point 5 – point b a (new)
Article 1 – paragraph 1 – point 5 – point b a (new)
Regulation (EU) No 648/2012
Article 9 – paragraph 1 f
Article 9 – paragraph 1 f
(ba) Paragraph 1f is replaced by the following: ‘1f. Counterparties and CCPs that are subject to the reporting obligation referred to in paragraph 1 may delegate that reporting obligation. When doing so, Counterparties and CCPs remain fully responsible, and legally liable, for reporting the details of OTC derivatives as well as for ensuring the correctness of the details reported.’
Amendment 299 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 – introductory part
Article 1 – paragraph 1 – point 6 – introductory part
Regulation (EU) No 648/2012
Article 10
Article 10
(6) in Article 10, paragraphs 2a to 5 are replaced by the is amended as following:s
Amendment 300 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point a (new)
Article 1 – paragraph 1 – point 6 – point a (new)
Regulation (EU) No 648/2012
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
(a) The first subparagraph of paragraph 1 is replaced by the following: 1. A non-financial counterparty taking positions in OTC derivative contracts may calculate, annually, its average of the three highest month-end averages positions within the precedent 12 months in accordance with paragraph 3.
Amendment 301 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point b (new)
Article 1 – paragraph 1 – point 6 – point b (new)
Regulation (EU) No 648/2012
Article 10 – paragraph 2
Article 10 – paragraph 2
(b) In paragraph 2, the ‘aggregate month-end average position for the previous 12 months’ is replaced by the ‘average of the three highest month-end average positions over the previous 12 months’.
Amendment 302 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point c (new)
Article 1 – paragraph 1 – point 6 – point c (new)
Regulation (EU) No 648/2012
Article 10 – paragraphs 2 a to 5
Article 10 – paragraphs 2 a to 5
(c) Paragraphs 2a to 5 are replaced by the following:
Amendment 306 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) No 648/2012
Article 10 – paragraph 3
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 ofentered into by the non-financial counterparty or by other non-financial entities within the group to which the non-financial counterparty belongs.
Amendment 307 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) No 648/2012
Article 10 – paragraph 4 – point (a)
Article 10 – paragraph 4 – point (a)
Amendment 309 #
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) No 648/2012
Article 10 – paragraph 4 – point c
Article 10 – paragraph 4 – point c
(c) the mechanisms triggering a review of the values of the clearing thresholds following significant price fluctuations in the underlying class of OTC derivatives or significant increase of financial stability risks.
Amendment 310 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point -a (new)
Article 1 – paragraph 1 – point 7 – point -a (new)
Regulation (EU) No 648/2012
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
(-a) in paragraph 1, the first subparagraph is replaced by the following: 1. Financial counterparties and non- financial counterparties that enter into an OTC derivative contract not cleared by a CCP, shall ensure, exercising due diligence, that appropriathe procedures and arrangements are in place to measure, monitor and mitigate operational risk and counterparty credit risk, are at least equivalent to those of a CCP and includinge at least:
Amendment 312 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point a
Article 1 – paragraph 1 – point 7 – point a
Regulation (EU) No 648/2012
Article 11 – paragraph 2– subparagraph 2
Article 11 – paragraph 2– subparagraph 2
A non-financial counterparty becoming subject for the first time to the obligations laid down in the first subparagraph shall set up the necessary arrangements to comply with those obligations within four months following the notification referred to in Article 10(1), second subparagraph, point (a). A non-financial counterparty shall be exempted from those obligations for contracts entered into during the four months following that notification.;
Amendment 315 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) No 648/2012
Article 11 – paragraph 3– subparagraph 1 a
Article 11 – paragraph 3– subparagraph 1 a
Amendment 316 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) No 648/2012
Article 11 – paragraph 3– subparagraph 2
Article 11 – paragraph 3– subparagraph 2
A non-financial counterparty becoming subject for the first time to the obligations laid out in the first subparagraph shall set up the necessary arrangements to comply with those obligations within four months following the notification referred to in Article 10(1), second subparagraph, point (a). A non-financial counterparty shall be exempted from those obligations for contracts entered into during the four months following that notification.
Amendment 319 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) No 648/2012
Article 11 – paragraph 3– subparagraph 3
Article 11 – paragraph 3– subparagraph 3
Amendment 320 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) No 648/2012
Article 11 – paragraph 3– subparagraph 4
Article 11 – paragraph 3– subparagraph 4
Amendment 322 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point c
Article 1 – paragraph 1 – point 7 – point c
Regulation (EU) No 648/2012
Article 11 – paragraph 15– subparagraph 1– point c
Article 11 – paragraph 15– subparagraph 1– point c
(c) in paragraph 15, first subparagraph, point (aa) is deleted is amended as follows.
Amendment 323 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point c – point i (new)
Article 1 – paragraph 1 – point 7 – point c – point i (new)
Regulation (EU) No 648/2012
Article 11 – paragraph 15 – subparagraph 1– point (aa)
Article 11 – paragraph 15 – subparagraph 1– point (aa)
(aa) the supervisory procedures to ensure initial and ongoing validation of those risk-management proceduresi) point (aa) is replaced by the following: “(aa) the supervisory requirements for counterparties in connection with initial margin models additional to those specified in point (a);”;
Amendment 324 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point c – point 2 (new)
Article 1 – paragraph 1 – point 7 – point c – point 2 (new)
Regulation (EU) No 648/2012
Article 11 – paragraph 15 – subparagraph 1 – point (ab)
Article 11 – paragraph 15 – subparagraph 1 – point (ab)
(ii) the following point (ab) is inserted: “(ab) the data standards, formats and type of information to be reported and disclosed on risk-management procedures, including where relevant on initial margin models, in accordance with the supervisory requirements referred to in point (aa);”
Amendment 325 #
Proposal for a regulation
Article 1 – paragraph 1 – point 7 a (new)
Article 1 – paragraph 1 – point 7 a (new)
Regulation (EU) No 648/2012
Article 12 – paragraphs 1 a and 1 b (new)
Article 12 – paragraphs 1 a and 1 b (new)
(7a) In Article 12 the following paragraphs are inserted: ‘1a. Member States shall ensure that competent authorities are able to impose period penalty payments to financial and non-financial counterparties that infringe Article 7a or Article 7b of this Regulation. The amount of the periodic penalty payments shall be at least 3 % of the average daily turnover in the preceding business year and should be imposed for a period of 6 months or until the infringement ceases.' ‘1b. Member States shall ensure that competent authorities are able to impose period penalty payments to financial and non-financial counterparties when the data reported in accordance with Article 9 contain manifest errors or when financial or non-financial counterparties have not exercised due diligence when checking and reporting these data. By [12 months after entry into force of this Regulation] ESMA shall draft guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010 further specifying the due diligence checks and procedures expected from financial and non-financial counterparties subject to the reporting obligation in accordance with Article 9 of this Regulation and the penalties that may be imposed by competent authorities.
Amendment 326 #
Proposal for a regulation
Article 1 – paragraph 1 – point 9 – point -a (new)
Article 1 – paragraph 1 – point 9 – point -a (new)
Regulation (EU) No 648/2012
Article 14 – paragraph 1
Article 14 – paragraph 1
(-a) paragraph 1 is replaced by the following: “1. Where a legal person established in the Union intends to provide clearing services as a CCP, it shall apply for authorisation to the competent authority of the Member State where it is established (the CCP’s competent authority), in accordance with the procedure set out in Article 17.ESMA, in accordance with the procedure set out in Article 17. ESMA shall inform the competent authority of the Member State where it is established without delay."
Amendment 328 #
Proposal for a regulation
Article 1 – paragraph 1 – point 10 – point a
Article 1 – paragraph 1 – point 10 – point a
Regulation (EU) No 648/2012
Article 15 – subparagraph 1
Article 15 – subparagraph 1
A CCP wishing to extend its business to additional services or activities not covered by the existing authorisation shall submit a request for extension to the CCP’s competent authorityESMA. The offering of clearing services or activities for which the CCP has not already been authorised shall be considered to be an extension of that authorisation.
Amendment 329 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 − paragraph 1 − subparagraph 1
Article 17 − paragraph 1 − subparagraph 1
The applicant CCP shall submit an application for authorisation as referred to in Article 14(1) or an application for an extension of its authorisation as referred to in Article 15(1) in an electronic format via the central database referred to in paragraph 7. The application shall be immediately shared with the CCP’sESMA the competent authority, ESMA of the Member State where the CCP is established and the college referred to in Article 18(1).
Amendment 332 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 1– subparagraph 2
Article 17 – paragraph 1– subparagraph 2
Amendment 334 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 1– subparagraph 3
Article 17 – paragraph 1– subparagraph 3
Where the CCP’s competent authorityESMA determines that not all documents required pursuant to Article 14(6) and (7) or Article 15(3) and (4) have been submitted, it shall reject the CCP’s application.
Amendment 336 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 3 – subparagraph 1 – introductory part
Article 17 – paragraph 3 – subparagraph 1 – introductory part
Within 40 working days of the end of the period set out in the second subparagraph of paragraph 1 (“the risk assessment period”), the CCP’s competent authority, ESMA and the college shall each conduct risk assessments of the CCP’s compliance with the relevant requirements laid down in this Regulation. By the end of the risk assessment period:
Amendment 337 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 3 – subparagraph 1 – point a
Article 17 – paragraph 3 – subparagraph 1 – point a
(a) the CCP’s competent authorityESMA shall transmit its draft decision and report to ESMA and the college and the competent authority of the Member State where the CCP is established ;
Amendment 338 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 3 – subparagraph 1 – point b
Article 17 – paragraph 3 – subparagraph 1 – point b
Amendment 339 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 3 – subparagraph 1 – point c
Article 17 – paragraph 3 – subparagraph 1 – point c
Amendment 340 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 3 – subparagraph 2
Article 17 – paragraph 3 – subparagraph 2
Amendment 341 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 3 − subparagraph 3
Article 17 – paragraph 3 − subparagraph 3
Amendment 342 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point c
Article 1 – paragraph 1 – point 11 – point c
Regulation (EU) No 648/2012
Article 17 − paragraph 3 a
Article 17 − paragraph 3 a
3a. During the risk assessment period referred to in paragraph 3, the CCP’s competent authority, ESMA or any of the college members may submit questions directly to the CCP. Where the CCP does not respond to such questions within the time period set by the requesting authority, the CCP’s competent authority, ESMA or the college may take a decision in the absence of the CCP’s response or may decide to extend the assessment period by a maximum of 10 working days, if, in their view, the question is material for the assessment.
Amendment 344 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point c
Article 1 – paragraph 1 – point 11 – point c
Regulation (EU) No 648/2012
Article 17 − paragraph 3 b – subparagraph 1
Article 17 − paragraph 3 b – subparagraph 1
Within 10ten working days of receipt of both the ESMA opinion and the college opinion, the CCP’s competent authoritythe college opinion, ESMA shall adopt its decision and transmit it to ESMA and the college.
Amendment 346 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point c
Article 1 – paragraph 1 – point 11 – point c
Where the CCP’s competent authorityESMA does not agree with an opinion of ESMA or the college, including any conditions or recommendations contained therein, its decision shall contain full reasons and an explanation of any significant deviation from that opinion or conditions or recommendations.
Amendment 347 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point c
Article 1 – paragraph 1 – point 11 – point c
Regulation (EU) No 648/2012
Article 17 − paragraph 3 b – subparagraph 3
Article 17 − paragraph 3 b – subparagraph 3
Amendment 348 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point d
Article 1 – paragraph 1 – point 11 – point d
Regulation (EU) No 648/2012
Article 17 − paragraph 4 – subparagraph 1 – introductory part
Article 17 − paragraph 4 – subparagraph 1 – introductory part
Amendment 351 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point d
Article 1 – paragraph 1 – point 11 – point d
Regulation (EU) No 648/2012
Article 17 − paragraph 4 − subparagraph 2
Article 17 − paragraph 4 − subparagraph 2
The CCP shall not be authorised where all the members of the college, excluding the authorities of the Member State where the CCP is established, reach a joint opinion by mutual agreement, pursuant to Article 19(1), that the CCP not be authorised. That opinion shall state in writing the full and detailed reasons why the college considers that the requirements laid down in this Regulation or other Union law are not met.
Amendment 352 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point d
Article 1 – paragraph 1 – point 11 – point d
Regulation (EU) No 648/2012
Article 17 − paragraph 4 − subparagraph 3
Article 17 − paragraph 4 − subparagraph 3
Amendment 353 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point d
Article 1 – paragraph 1 – point 11 – point d
Regulation (EU) No 648/2012
Article 17 − paragraph 4 − subparagraph 4
Article 17 − paragraph 4 − subparagraph 4
Amendment 354 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point d
Article 1 – paragraph 1 – point 11 – point d
Regulation (EU) No 648/2012
Article 17 − paragraph 4 − subparagraph 5
Article 17 − paragraph 4 − subparagraph 5
Amendment 355 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point d
Article 1 – paragraph 1 – point 11 – point d
Regulation (EU) No 648/2012
Article 17 − paragraph 4 − subparagraph 6
Article 17 − paragraph 4 − subparagraph 6
Amendment 358 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point e
Article 1 – paragraph 1 – point 11 – point e
Regulation (EU) No 648/2012
Article 17 − paragraph 7 – subparagraph 1
Article 17 − paragraph 7 – subparagraph 1
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.
Amendment 359 #
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point e
Article 1 – paragraph 1 – point 11 – point e
Regulation (EU) No 648/2012
Article 17 − paragraph 7 – subparagraph 2
Article 17 − paragraph 7 – subparagraph 2
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.
Amendment 361 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17a – paragraph 1 – point b
Article 17a – paragraph 1 – point b
Amendment 368 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 2
Article 17 a – paragraph 2
2. The CCP’s competent authorityESMA may, after considering the input of the joint 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 conditions:
Amendment 374 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 2 a (new)
Article 17 a – paragraph 2 a (new)
2a. ESMA shall, in close cooperation with the ESCB, develop draft regulatory technical standards specifying the conditions laid down in paragraph 2 of this Article that are necessary for a clearing service or activity to be eligible to the non-objection procedure set up in paragraph 1 of this Article . 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 ;
Amendment 377 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 3
Article 17 a – paragraph 3
Amendment 378 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 4
Article 17 a – paragraph 4
Amendment 382 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 5
Article 17 a – paragraph 5
5. Where a CCP’s competent authority,ESMA after considering the input of the joint supervisory team set up for that CCP pursuant to Article 23b, has not expressed its objection to the CCP’s proposed additional services or activities within 10 working days of receipt of the application where paragraph 1 applies or of receipt of the notification referred to in paragraph 4, where that paragraph applies, confirming that the non-objection procedure set out in this Article applies, the authorisation shall be deemed as granted.
Amendment 383 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 5 a (new)
Article 17 a – paragraph 5 a (new)
5a. The requesting CCP shall not be permitted to start a new activity or service for which it has requested the application of this Article before the end of the non- objection procedure.
Amendment 384 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 1
Article 17 b – paragraph 1
Amendment 386 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 1
Article 17 b – paragraph 1
Amendment 387 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 1
Article 17 b – paragraph 1
Amendment 388 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 1
Article 17 b – paragraph 1
Amendment 389 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 2
Article 17 b – paragraph 2
2. Unless otherwise specified under the relevant Article, ESMA and the college shall, within 30 working days of receipt of the request referred to in paragraph 1 (‘the assessment period’), assess the CCP’s compliance with the respective requirements. By the end of the assessment period, ESMA shall transmit its draft decision and report to the CCP’s competent authority and the college, and the college shall adopt an opinion pursuant to Article 19 and transmit it to ESMA and the CCP’s competent authority. The college may include in its opinion any conditions or recommendations that it considers necessary to mitigate any shortcomings in the CCP's risk management:
Amendment 390 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 2
Article 17 b – paragraph 2
Amendment 391 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 2
Article 17 b – paragraph 2
Amendment 392 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 2
Article 17 b – paragraph 2
Amendment 393 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 3
Article 17 b – paragraph 3
Within 10 working days of receipt of the ESMAcollege’s opinion and, where required, the college opinion, the CCP’s competent authority ESMA shall, after duly considering the opinions of ESMA and the college, including any conditions or recommendations contained therein, adopt its decision and transmit it to ESMA and the college.
Amendment 394 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 3
Article 17 b – paragraph 3
Where the CCP’s competent authorityESMA does not agree with an opinion of ESMA or the college, including any conditions or recommendations contained therein, its decision shall contain full reasons and an explanation of any significant deviation from that opinion or conditions or recommendations.
Amendment 395 #
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 3
Article 17 b – paragraph 3
Amendment 396 #
Proposal for a regulation
Article 1 – paragraph 1 – point 13 – point a
Article 1 – paragraph 1 – point 13 – point a
Regulation (EU) No 648/2012
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Within 30 calendar days of the submission of a complete application in accordance with Article 17, the CCP's competent authorityESMA shall establish a college to facilitate the exercise of the tasks referred to in Articles 15, 17 , 20, 21, 30, 31, 32, 35, 41, 49, 51 and 54.;
Amendment 397 #
Proposal for a regulation
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Regulation (EU) No 648/2012
Article 19 – paragraph 1
Article 19 – paragraph 1
Amendment 398 #
Proposal for a regulation
Article 1 – paragraph 1 – point 14 – point a
Article 1 – paragraph 1 – point 14 – point a
Regulation (EU) No 648/2012
Article 19 – paragraph 1
Article 19 – paragraph 1
When casting their votes, and where appropriate, college members should provide a short reasoning of their vote’
Amendment 399 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 648/2012
Article 20 – paragraph 3
Article 20 – paragraph 3
3. The CCP’s competent authorityESMA shall consult ESMA and the members of the college, in accordance with paragraph 6, on the necessity to withdraw the authorisation of the CCP, except where a decision is required urgently.
Amendment 400 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 648/2012
Article 20 – paragraph 4
Article 20 – paragraph 4
4. ESMA or aAny member of the college may, at any time, request that the CCP’s competent authorityESMA examine whether the CCP remains in compliance with the conditions under which authorisation was granted.
Amendment 401 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 648/2012
Article 20 – paragraph 5
Article 20 – paragraph 5
5. The CCP’s competent authorityESMA may limit the withdrawal to a particular service, activity, or class of financial instruments or non-financial instruments.
Amendment 402 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 648/2012
Article 20 – paragraph 6
Article 20 – paragraph 6
6. Before the CCP’s competent authorityESMA takes a decision to withdraw a particular service, activity, or class of financial instruments or non- financial instruments, it shall request the opinions of ESMA and the college in accordance with Article 17b.
Amendment 403 #
Proposal for a regulation
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Regulation (EU) No 648/2012
Article 20 – paragraph 7
Article 20 – paragraph 7
7. Where a CCP’s competent authorityESMA takes a decision on the withdrawal of authorisation in full or in relation to a particular service, activity, or class of financial instruments or non- financial instruments, that decision shall take effect throughout the Union.;
Amendment 404 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16 – point a
Article 1 – paragraph 1 – point 16 – point a
Regulation (EU) No 648/2012
Article 21 – paragraph 1
Article 21 – paragraph 1
1. The competent authorities referred to in Article 22 shall doESMA shall do at least all of the following:
Amendment 405 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16 – point b
Article 1 – paragraph 1 – point 16 – point b
Regulation (EU) No 648/2012
Article 21 – paragraph 3
Article 21 – paragraph 3
Amendment 406 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16 – point b
Article 1 – paragraph 1 – point 16 – point b
Regulation (EU) No 648/2012
Article 21 – paragraph 3
Article 21 – paragraph 3
CCPs shall be subject to on-site inspections. Competent authoritiesESMA shall invite the members of the joint supervisory team set up for that CCP pursuant to Article 23b,college to participate in on- site inspections.
Amendment 407 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16 – point b
Article 1 – paragraph 1 – point 16 – point b
Regulation (EU) No 648/2012
Article 21 – paragraph 3
Article 21 – paragraph 3
Amendment 408 #
Proposal for a regulation
Article 1 – paragraph 1 – point 16 – point b
Article 1 – paragraph 1 – point 16 – point b
Regulation (EU) No 648/2012
Article 21 – paragraph 4
Article 21 – paragraph 4
4. The competent authoritiesESMA shall regularly, and at least annually, submit a report to the college on the results of the review and evaluation as referred to in paragraph 1, including whether the competent authority has taken any remedial action or imposed penalties. The competent authorities shall communicate the report covering a calendar year to ESMA by 30 March of the following calendar year. That report shall be subject to an opinion of the college pursuant to Article 19 and an opinion by ESMA pursuant to Article 24a(7), first subparagraph, point (bc), issued in accordance with the procedure set out in Article 17b.at report shall be subject to an opinion of the college pursuant to Article 19;
Amendment 412 #
Proposal for a regulation
Article 1 – paragraph 1 – point 17 – introductory part
Article 1 – paragraph 1 – point 17 – introductory part
Regulation (EU) No 648/2012
Article 23a
Article 23a
(17) Article 23a is amended as follows:deleted
Amendment 413 #
Proposal for a regulation
Article 1 – paragraph 1 – point 17 – point a
Article 1 – paragraph 1 – point 17 – point a
Regulation (EU) No 648/2012
Article 23a
Article 23a
Amendment 414 #
Proposal for a regulation
Article 1 – paragraph 1 – point 17 – point b
Article 1 – paragraph 1 – point 17 – point b
Regulation (EU) No 648/2012
Article 23a
Article 23a
Amendment 415 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23b – paragraph 1
Article 23b – paragraph 1
1. A joint supervisory team shall be established for the supervision of each CCP authorised under Article 14. Each joint supervisory team shall be composed of staff members from the CCP’s competent authority, ESMA and the members of the college referred to in Article 18, points (c), (g) and (h). Other members of the college may also request to participate in the joint supervisory team. Joint supervisory teams shall work under the coordination of a designated competent authority staff member. ESMA staff member, the JST Coordinator. Joint supervisory team members shall follow the JST coordinator’s instructions as regards their tasks in the joint supervisory team. This shall not affect their tasks and duties within their respective competent authorities. Unless justified, the JST coordinator shall not be from the country where the CCP has its headquarter. The CCP Supervisory Committee shall ensure that the JST is composed of staff with sufficient degree and diversity of knowledge, background, expertise and experience.
Amendment 417 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23b – paragraph 2 – point a
Article 23b – paragraph 2 – point a
(a) provide input to the competent authorities, ESMACCP Supervisory Committee and the colleges pursuant to Article 17a (2), (4) and (5)and Article 21(3);
Amendment 418 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
(c a) contribute to the annual review and evaluation process, carried out by ESMA in accordance with Article 21(1);
Amendment 419 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23b – paragraph 2
Article 23b – paragraph 2
(d) where a CCP’s competent authority so requests, provide assistance to that competent authority in assessing the CCP’s compliance with the requirementsconduct the day-to-day supervisory activities for CCPs authorised in accordance with Article 14 of this Regulation.
Amendment 420 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23b – paragraph 3
Article 23b – paragraph 3
3. The CCP’s competent authoritySupervisory Committee shall be in charge of the establishment of joint supervisory teams.
Amendment 423 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23c – paragraph 1 – subparagraph 2 – point c a (new)
Article 23c – paragraph 1 – subparagraph 2 – point c a (new)
(c a) the central banks of issue of the currencies other than the euro in which the derivative contracts referred to in paragraph 2 of Article 7a are denominated.
Amendment 426 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
(c) contribute to the development of Union-wide assessments of the resilience of CCPs focussing on horizontal credit and operational risks as well as liquidity risks concerning CCPs, clearing members and clients;
Amendment 429 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23c – paragraph 2 – point d
Article 23c – paragraph 2 – point d
(d) identify concentration risks, in particular in client clearing, due to the integration of Union financial markets, including where several CCPs, clearing members or clients use the same service providers, due to clients accessing the same CCP via different clearing members of that CCP, or due to clients maintaining large positions in markets of products that the CCP clears;
Amendment 430 #
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23c – paragraph 3
Article 23c – paragraph 3
3. ESMA shall, in cooperation with the other bodies participating to the Joint Monitoring Mechanism, submit an annual report to the European Parliament, the Council and the Commission on the results of its activities pursuant to paragraph 2. ESMA shall, in cooperation with the college, duly consider, in the context of the annual review and evaluation process referred to in Article 21, any findings of the Joint Monitoring Mechanism on risks to central clearing. Based on the report referred to in the first sub-paragraph, the Commission may, where appropriate, submit to the European Parliament and the Council legislative proposal to preserve the Union’s financial stability and reduce the over reliance on third-country CCPs.
Amendment 433 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
1. The CCP's competent authority orESMA any other relevant authority shall inform ESMA, the college, the relevant members of the ESCB, the Commission and other relevant authorities without undue delay of any emergency situation relating to a CCP, including all of the following:
Amendment 436 #
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Regulation (EU) No 648/2012
Article 24 – paragraph 4
Article 24 – paragraph 4
Where a meeting of the CCP Supervisory Committee is held pursuant to an emergency situation as specified in point c of subparagraph 1, the relevant central banks of issue shall be invited to the meeting.
Amendment 437 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point a – introductory part
Article 1 – paragraph 1 – point 20 – point a – introductory part
Regulation (EU) No 648/2012
Article 24a – paragraph 1
Article 24a – paragraph 1
(a) in paragraph 2, point (d) (ii) is replaced by the is amended as followings:
Amendment 438 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point a – point 1 (new)
Article 1 – paragraph 1 – point 20 – point a – point 1 (new)
Regulation (EU) No 648/2012
Article 24a – paragraph 1
Article 24a – paragraph 1
1) point (d) (ii) is replaced by the following:
Amendment 440 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point a – point 2 (new)
Article 1 – paragraph 1 – point 20 – point a – point 2 (new)
Regulation (EU) No 648/2012
Article 24a – paragraph 1 – point e
Article 24a – paragraph 1 – point e
2) point (e) is added: ‘(e) the competent authorities responsible for the supervision of the three clearing members with the largest contributions, calculated on an aggregate basis over a one-year period, to the default fund, referred to in Article 42 of this Regulation, of each of the CCPs authorised in accordance with Article 14 or recognised in accordance with Article 25 of this Regulation, including, where relevant, 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, who shall be non-voting.’
Amendment 442 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point b
Article 1 – paragraph 1 – point 20 – point b
Regulation (EU) No 648/2012
Article 24a – paragraph 3
Article 24a – paragraph 3
3. The Chair may invite as observers to the meetings of the CCP Supervisory Committee, where appropriate and necessary, members of the colleges referred to in Article 18, representatives from the relevant authorities of clients where they are known and from the relevant Union institutions and bodies.;
Amendment 443 #
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point c – point ii
Article 1 – paragraph 1 – point 20 – point c – point ii
Regulation (EU) No 648/2012
Article 24a – paragraph 7
Article 24a – paragraph 7
(bc) prepare draft opindecisions for adoption by the Board of Supervisors in accordance with Articles 17 and 17b and draft validation decisions in accordance with Article 49;relation to Articles 7, 8, 14 to 17b, 20, 21, and 24 and Titles IV and V of this Regulation;
Amendment 462 #
Proposal for a regulation
Article 1 – paragraph 1 – point 25 a (new)
Article 1 – paragraph 1 – point 25 a (new)
Regulation (EU) No 648/2012
Article 27 – paragraph 2
Article 27 – paragraph 2
(25 a) in Article 27, the following paragraph 2a is inserted: 2a. The composition of the CCP’s Board shall be sufficiently diversified to reflect an adequately broad range of experience and shall duly take into account gender- balance principle.’
Amendment 464 #
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. The criteria shall ensure that CCPs or clearing houses cannot be clearing members or provide client clearing services, directly or indirectly, ofat the CCP.;’
Amendment 467 #
Proposal for a regulation
Article 1 – paragraph 1 – point 29 – point c
Article 1 – paragraph 1 – point 29 – point c
Regulation (EU) No 648/2012
Article 37 – paragraph 7
Article 37 – paragraph 7
ESMA shall, after having consulted the EBA and the ESCB, develop draft regulatory technical standards further specifying - the elements to be considered when laying down the admission criteria referred to in paragraph 1, - the participation requirements for accepting non-financial counterparties as clearing members in accordance with paragraph 1a., in particular as regards to their liquidity risk profile.
Amendment 471 #
Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point b a (new)
Article 1 – paragraph 1 – point 30 – point b a (new)
Regulation (EU) No 648/2012
Article 38 – paragraph 9
Article 38 – paragraph 9
(b a) paragraph 9 is added: ‘9. ESMA shall, in consultation with EBA and the ESCB, develop draft regulatory technical standards further specifying the information to be provided pursuant to paragraphs 6, 7 and 8. ESMA shall submit those draft regulatory technical standards to the Commission by … [PO please enter 12 months after 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.’
Amendment 472 #
Proposal for a regulation
Article 1 – paragraph 1 – point 31 – point a
Article 1 – paragraph 1 – point 31 – point a
Regulation (EU) No 648/2012
Article 41 – paragraph 2
Article 41 – paragraph 2
2. A CCP shall adopt models and parameters in setting its margin requirements that capture the risk characteristics of the products cleared and take into account the interval between margin collections, market liquidity and the possibility of changes over the duration of the transaction. The models shall be validated by the competent authority and subject to an opinion in accordance with Article 19 and an opinion by ESMA in accordance with Article 24a(7), first subparagraph, point (bc), issued in accordance with the procedure under Article 17band parameters shall be validated by ESMA.
Amendment 475 #
Proposal for a regulation
Article 1 – paragraph 1 – point 31 – point a
Article 1 – paragraph 1 – point 31 – point a
Regulation (EU) No 648/2012
Article 41 – paragraph 3
Article 41 – paragraph 3
3. A CCP shall call and collect margins on an intraday basis, at least when predefined thresholds are exceeded. In doing so a CCP shall consider the potential impact of its intraday margin collections and payments on the liquidity position of its participants and on the resilience of the CCP. A CCP shall strive to the best of its ability not to hold intraday variation margin calls after all payments due have been received.;
Amendment 477 #
Proposal for a regulation
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Regulation (EU) No 648/2012
Article 44 – paragraph 1
Article 44 – paragraph 1
A CCP shall measure, on a daily basis, its potential liquidity needs. It shall take into account the liquidity risk generated by the default of at least the two entities, including clearing members or liquidity providers, to which it has the largest exposures.; in aggregate for all currencies and separately for each of the most relevant Union currencies of the financial instruments cleared.’
Amendment 479 #
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. AFor non- financial counterparties, a CCP may accept public guarantees or public bank or collateralized 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. It shall also subject them to concentration limits and ensure that they only represent a small share of the total amount of the initial margin requirement of the non- financial 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 483 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 – point b – introductory part
Article 1 – paragraph 1 – point 33 – point b – introductory part
Regulation (EU) No 648/2012
Article 46 – paragraph 1 – point b
Article 46 – paragraph 1 – point b
(b) in paragraph 3, first subparagraph, point (b) and (c) are is replaced by the following:
Amendment 486 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 – point b
Article 1 – paragraph 1 – point 33 – point b
Regulation (EU) No 648/2012
Article 46 – paragraph 3 – subparagraph 1 – point b a (new)
Article 46 – paragraph 3 – subparagraph 1 – point b a (new)
(b a) the conditions under which commercial bank guarantees may be accepted as collateral, including the limits referred to in paragraph 1’
Amendment 492 #
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
Article 49 – paragraph 1
A CCP shall regularly review the models and parameters adopted to calculate its margin requirements, default fund contributions, collateral requirements and other risk control mechanisms. It shall subject the models to rigorous and frequent stress tests to assess their resilience in extreme but plausible market conditions and shall perform back tests to assess the reliability of the methodology adopted. The CCP shall obtain independent validation, shall inform its competent authority and ESMA of the results of the tests performed and shall obtain their validation in accordance with paragraphs 1a, to 1e before adopting any significant change to the models and parameters.
Amendment 496 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point a
Article 1 – paragraph 1 – point 34 – point a
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 1g, 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.
Amendment 499 #
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 b
Article 49 – paragraph 1 b
Within 120 working days of the date referred to in the third subparagraph of paragraph 1a, the competeESMA, after taking into authority and ESMAccount input from the college, shall assess if the proposed change qualifies as a significant change pursuant to paragraph 1g. Where one of themit concludes that the change meets one of the conditions referred to in paragraph 1g, the application shall be assessed under paragraphs 1c, 1d and1e and the CCP’s competent authority, in cooperation with ESMA, shall inform in writing the applicant CCP thereof.
Amendment 500 #
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 b
Article 49 – paragraph 1 b
Where within 120 working days of the date referred to in the third subparagraph of paragraph 1a, the applicant CCP has not been informed in writing that its request for the non-objection procedure to apply has been denied, that change shall be deemed as validated.
Amendment 501 #
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 b
Article 49 – paragraph 1 b
Amendment 504 #
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 15 %;
Amendment 507 #
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
(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;
Amendment 512 #
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 210 % of a default fund, or greater than 250 % of any individual default fund contribution;
Amendment 514 #
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 210 % or the total liquidity needs greater than 10 5%;
Amendment 526 #
Proposal for a regulation
Article 1 – paragraph 1 – point 35 a (new)
Article 1 – paragraph 1 – point 35 a (new)
Regulation (EU) No 648/2012
Article 81 – paragraph 3 – point s (new)
Article 81 – paragraph 3 – point s (new)
(35 a) In Article 81 (3) the following point (s) is added: ‘(s) the designated national macroprudential authorities entrusted with the conduct of macroprudential policy referred to in Recommendation B1 of the Recommendation of the European Systemic Risk Board (ESRB) of 22 December 2011 on the macroprudential mandate of national authorities (ESRB/2011/3).
Amendment 527 #
Proposal for a regulation
Article 1 – paragraph 1 – point 35 b (new)
Article 1 – paragraph 1 – point 35 b (new)
Regulation (EU) No 648/2012
Article 81 – paragraph 4 – point a (new)
Article 81 – paragraph 4 – point a (new)
(35 b) The following paragraph 4a is inserted in Article 81: 4.a. A trade repository shall on a quarterly transmit basis to ESMA all the information collected pursuant article 9 of this Regulation.
Amendment 528 #
Proposal for a regulation
Article 1 – paragraph 1 – point 36 a (new)
Article 1 – paragraph 1 – point 36 a (new)
Regulation (EU) No 648/2012
Article 84 – paragraph 3 a (new)
Article 84 – paragraph 3 a (new)
(36 a) the following paragraph 3a is inserted in Article 84 3a. The Agency implementing Article 8(2) and (6) of Regulation (EU) No 1227/2011 shall transmit to ESMA the amount of trading taking place and on positions held in wholesale energy products.
Amendment 530 #
Proposal for a regulation
Article 1 – paragraph 1 – point 37 – point b
Article 1 – paragraph 1 – point 37 – point b
Regulation (EU) No 648/2012
Article 85 – paragraph 1 – point b
Article 85 – paragraph 1 – point b
1b. By [PO: please insert the date = 1 year after the entry into force of this Regulation] ESMA, after consulting ESRB and other relevant authorities, shall submit a report to the Commission on the possibility and feasibility to require the segregation of accounts acrosssets and positions the clearing chainld for accounts of non- financial and financial counterparties as clients. The report shall be accompanied by a cost- benefit analysis.; Based on this this report, the Commission shall, where appropriate, submit legislative proposal to the European Parliament and to the Council.’
Amendment 533 #
Proposal for a regulation
Article 1 – paragraph 1 – point 37 – point b a (new)
Article 1 – paragraph 1 – point 37 – point b a (new)
Amendment 535 #
Proposal for a regulation
Article 2 – paragraph 1 a (new)
Article 2 – paragraph 1 a (new)
Regulation (EU) 575/2013
Article 397a (new)
Article 397a (new)