Activities of Antolín SÁNCHEZ PRESEDO related to 2012/0029(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on improving securities settlement in the European Union and on central securities depositories (CSDs) and amending Directive 98/26/EC PDF (681 KB) DOC (494 KB)
Amendments (64)
Amendment 144 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to ensure the safety of settlement, any participant to a securities settlement system buying or selling certain financial instruments, namely transferable securities, money-market instruments, units in collective investment undertakings and emission allowances, should settle its obligation on the intended settlement due date.
Amendment 147 #
Proposal for a regulation
Recital 13
Recital 13
(13) Longer settlement periods of transactions in transferable securities cause uncertainty and increased risk for securities settlement systems participants. Different durations of settlement periods across Member States hamper reconciliation and are sources of errors for issuers, investors and intermediaries. It is therefore necessary to provide a common settlement period which would facilitate the identification of the intended settlement due date and facilitate the implementation of settlement discipline measures. The intended settlement due date of transactions in transferable securities which are admitted to trading on trading venues regulated by Directive 2004/39/EC should be no later than on the second business day after the trading takes place.
Amendment 148 #
Proposal for a regulation
Recital 15
Recital 15
(15) One of the most efficient ways to address settlement fails is to require failing participants to be subject to a buy-in, whereby the securities which ought to be delivered must be bought in the market after the intended settlement due date and delivered to the receiving participant. This Regulation should provide for uniform rules concerning certain aspects of the buy- in transaction for all transferable securities, money-market instruments, units in collective investment undertakings and emission allowances, such as the timing, notice period, pricing and penalties.
Amendment 197 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Regulation lays down uniform requirements for the settlement of financial instruments in the Union and rules on the organisation and conduct of central securities depositories to promote safe, transparent, efficient and smooth settlement.
Amendment 202 #
Proposal for a regulation
Article 1 – paragraph 4
Article 1 – paragraph 4
4. Articles 9 to 18 and 20 as well as the provisions of Title IV do not apply to the members of the European System of Central Banks (ESCB), other Member States‘' national bodies performing similar functions, Union bodies or Member States’' public bodies charged with or intervening in the management of the public debt.
Amendment 204 #
Proposal for a regulation
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
(1) ‘'central securities depository’' (‘'CSD’') means a legal person that operates a securities settlement system listed in point 3 of Section A of the Annex and, performs at least one oll ther core services listed in Section A of the Annex and provides services according to this Regulation;
Amendment 210 #
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) ‘'settlement’' means the completion of a securities transaction with the aim offormalising the rights and discharging the obligations of participants through the transfer of funds or, securities or both to end investors;
Amendment 212 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
(3) ‘securities settlement system’ means a system under the first and second indents of point (a) of Article 2 of Directive 98/26/EC whose businessactivity consists of the execution of transfer orders as defined in the second indent of point (i) of Article 2 of Directive 98/26/EC;
Amendment 214 #
Proposal for a regulation
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
(4) ‘settlement period’ means the time period between the trade date and the intended settlement due date;
Amendment 216 #
Proposal for a regulation
Article 2 – paragraph 1 – point 6
Article 2 – paragraph 1 – point 6
(6) ‘settlement fail’ means the non- occurrence of settlement of a securities transaction on the intended settlement date due to a lack of securities or cash,ue date regardless of the underlying cause;
Amendment 217 #
Proposal for a regulation
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
(7) ‘intended 'settlement due date’' means the date on which the parties to a securities transaction agree that settlement is to take place;
Amendment 218 #
Proposal for a regulation
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
(8) ‘central counterparty (CCP)’ means an entity legal person that interposes itself between the counterparties to the contracts traded within one or more financial markets, becoming the buyer to every seller and the seller to every buyer and which provides services in accordance with the Regulation (EU) No 648/2012;
Amendment 219 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
(9) ‘competent authority’ means the authority designated by each Member State in accordance with Article 10 and ESMA for the tasks conferred upon it by Regulation (EU) No 1095/2010 and this Regulation;
Amendment 221 #
Proposal for a regulation
Article 2 – paragraph 1 – point 17
Article 2 – paragraph 1 – point 17
(17) ‘delivery versus payment’ (‘DVP’) means a securities settlement mechanism which links a transfer of securities with a transfer of funds in a way that the delivery of securities occurs only ifagainst the corresponding payment occurs;
Amendment 236 #
Proposal for a regulation
Article 2 – paragraph 1 – point 31 a (new)
Article 2 – paragraph 1 – point 31 a (new)
(31 a) 'end investor' means a single or joint natural or legal person that holds or transfers securities as a consequence of legal transactions with a securities account provider for its own account;
Amendment 240 #
Proposal for a regulation
Article 2 – paragraph 1 – point 31 b (new)
Article 2 – paragraph 1 – point 31 b (new)
(31 b) 'SME growth market' means an SME growth market within the meaning of Article 4 of Directive .../.../EU of the European Parliament and of the Council [new MiFID];
Amendment 242 #
Proposal for a regulation
Title 2 – chapter 1 – title
Title 2 – chapter 1 – title
Amendment 247 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
2. Where the securities referred to in paragraph 1 are traded on regulated markets, traded on multilateral trading facilities (MTFs) or organised trading facilities (OTFs) or are transferred following a financial collateral arrangement as defined in point (a) of Article 2 of Directive 2002/47/EC, those securities shall be recorded in book-entry form in a CSD prior to the trade date, unless they have already been so recorded.
Amendment 248 #
Proposal for a regulation
Article 3 – paragraph 2 a (new)
Article 3 – paragraph 2 a (new)
2 a. Without prejudice to paragraphs 1 and 2, the securities settlement system shall ensure that the holders of securities may request and obtain a written record of their securities holdings. Such paper certificates issued shall indicate a simple electronic procedure to verify over time if its content remains valid. In any case the settlement system must establish workable procedures to ensure that the holders of securities may verify the position of their holdings.
Amendment 250 #
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
2. The authorities competent to check that the securities are admitted to trading and for the supervision of the regulated markets, MTFs and OTFs shall ensure that Article 3(2) is applied when the securities referred to in Article 3(1) are traded on regulated markets, MTFs or OTFs.
Amendment 252 #
Proposal for a regulation
Title 2 – chapter 2 – title
Title 2 – chapter 2 – title
Settlement perovisiodns
Amendment 253 #
Proposal for a regulation
Article 5 – title
Article 5 – title
Amendment 255 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Any participant to a securities settlement system buying or selsettling on its own account or on behalf of a third party transferable securities, money-market instruments, units in collective investment undertakings and emission allowances shall settle its obligation in relation to the securities settlement system on the intended settlement dateto end investors on the settlement due date using a standardised trade process and reporting their activities to the competent authorities.
Amendment 260 #
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. As regards transferable securities referred to in paragraph 1 which are traded on regulated markets, MTFs or OTFs, the intended settlement due date shall be no later than on the second business day after the trading takes place.
Amendment 264 #
Proposal for a regulation
Article 5 – paragraph 3
Article 5 – paragraph 3
3. The relevant authority of the Member State whose law applies to the securities settlement system operated by a CSD shall be competent for ensuring that paragraphs 1 and 2 are appliedcompleting the implementation in accordance with the paragraphs 1 to 4.
Amendment 265 #
Proposal for a regulation
Article 5 – paragraph 3 b (new)
Article 5 – paragraph 3 b (new)
3 b. The relevant authority of the Member State whose law applies to the securities settlement system operated by a CSD shall be competent for completing the implementation in accordance with the paragraphs 1 to 4.
Amendment 266 #
Proposal for a regulation
Article 5 – paragraph 3
Article 5 – paragraph 3
3. The relevant authority of the Member State whose law applies to the securities settlement system operated by a CSD shall be competent for ensuring thatEuropean Securities and Markets Authority (ESMA) shall develop in consultation with the members of the European System of Central Banks (ESCB) draft regulatory technical standards to specify the details of the standardised trade process to settle the obligations of participants referred to in paragraphs 1 and 2 are applied.
Amendment 267 #
Proposal for a regulation
Article 5 – paragraph 3 a (new)
Article 5 – paragraph 3 a (new)
3 a. ESMA shall submit those draft regulatory technical standards to the Commission by [six months from 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 the procedure laid down in Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 268 #
Proposal for a regulation
Article 5 – paragraph 3 a (new)
Article 5 – paragraph 3 a (new)
3 a. ESMA shall develop draft implementing technical standards to determine format and timing of the reporting referred to in paragraph 1 reflecting the regulatory technical standards referred to in paragraph 3. 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 ESMA shall submit those draft implementing technical standards to the Commission by [6 months from the entry into force of the regulatory technical standards].
Amendment 273 #
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. For each securities settlement system it operates, a CSD shall establish standardised procedures that facilitate the settlements of transactions in financial instruments referred to in Article 5(1) on the intended settlement date. It shall promote early settlement on the intended settlement date through appropriate mechanisms, such as a progressive tariff structureue date and shall have in place mechanisms to promote faster settlement.
Amendment 276 #
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. For each securities settlement system it operates, a CSD shall establish monitoring tools that allow it to identify in advance settlements of transactions in financial instruments referred to in Article 5(1) that are most likely to fail and it shall require participants to settle such transactions on the intended settlement due date.
Amendment 285 #
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. For each securities settlement system it operates, a CSD shall establish procedures that facilitate settlement of transactions in financial instruments referred to in Article 5(1) that are not settled on the intended settlement due date. These procedures shall provide for a sufficientlyeffective deterrent penalty mechanism for participants that cause the settlement fails.
Amendment 286 #
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. A participant to a securities settlement system that fails to deliver the financial instruments referred to in Article 5(1) to the receiving participant on the intended settlement due date shall be subject to a buy-in whereby those instruments shall be bought in the market no later than four days after the intendedtwo days, or four days for financial instruments that are admitted to trading on an SME growth market, after the settlement due date and delivered to that receiving participant and other measures in accordance with paragraph 4.
Amendment 288 #
Proposal for a regulation
Article 7 – paragraph 4 – point a
Article 7 – paragraph 4 – point a
(a) the daily penalty paid by the defaulting participant for each business day between the intended settlement due date and the actual settlement date;
Amendment 290 #
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
6. CSDs, CCPs, regulated markets, MTFs and OTFs shall establish procedures that enable them to suspend any participant that fails systematically to deliver the financial instruments referred to in paragraph 1 or cash on the intended settlement due date and to disclose to the public and report to the European Securities and Markets Authority (ESMA) and to the European System of Central Banks (ESCB) its identity only after giving that participant the opportunity to submit its observations.
Amendment 306 #
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. In order to ensure consistent, efficient and effective supervisory practices within the Union in relation to Articles 6 and 7 of this Regulation, ESMA in consultation with the members of the European System of Central Banks (ESCB) may issue guidelines in accordance with Article 16 of Regulation (EU) No 1095/2010.
Amendment 307 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
Amendment 308 #
Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
Each Member State shall designate the competent authority responsible for carrying out the duties under this Regulation for the authorisation and supervision of CSDs established in its territory and shall inform ESMA and the ESCB thereof.
Amendment 309 #
Proposal for a regulation
Article 11 – paragraph 1 – point a
Article 11 – paragraph 1 – point a
(a) the authority responsible for the oversight of the securities settlement system operated by the CSD in the Member State whose law applies to that securities settlement system;
Amendment 310 #
Proposal for a regulation
Article 11 – paragraph 1 – point a a (new)
Article 11 – paragraph 1 – point a a (new)
(a a) the authority or authorities responsible for the oversight of the securities settlement system in the Member States where the CSD operates;
Amendment 319 #
Proposal for a regulation
Article 13 – title
Article 13 – title
Amendment 322 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
The authorities referred to in Articles 9 and 11 shall immediately inform ESMA and each other of any emergency situation relating to a CSD, including of any developments in financial markets, which may have an adverse effect on market liquidity and on the stability of the financial system in any of the Member States where the CSD or one of its participants are establishedthis Chapter may ask ESMA to exercise its powers conferred to it under Articles 17, 18, 19 and 20 of Regulation (EU) 1095/2010 and to otherwise enforce this Regulation.
Amendment 325 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. The authorisation shall cover all the services in Section A of the Annex and specify the services set out in Sections A and B of the Annex, which the CSD is authorised to provide.
Amendment 339 #
Proposal for a regulation
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1 a. Each CSD which seeks to set up a standard link access shall notify it to the respective competent authority of the Member States where it is established.
Amendment 344 #
Proposal for a regulation
Article 17 – paragraph 1 – point d
Article 17 – paragraph 1 – point d
(d) setting up any CSDinteroperability link.
Amendment 417 #
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
1. A CSD shall establish user committees for each securities settlement system it operates, which shall be composed of representatives of issuers and of, participants to such securities settlement systems and different types of securities holders. The advice of the user committee shall be independent from any direct influence by the management of the CSD.
Amendment 419 #
Proposal for a regulation
Article 26 – paragraph 4
Article 26 – paragraph 4
4. Without prejudice to the right of competent authorities to be duly informed, the members of the user committees shall be bound by confidentiality on the aspects that do not affect the settlement conditions. Where the chairman of a user committee determines that a member has an actual or a potential conflict of interest on a particular matter, that member shall not be allowed to discuss or to vote on that matter.
Amendment 421 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. A CSD shall maintain, for a period of at least five years, all the records on the services and activity provided so as to enable the competent authority to monitor the compliance with the requirements under this Regulation. It shall do so for a period of at least five years. This period shall be automatically extended where a competent authority opens an investigation to ensure that affected records are maintained until such investigation has been concluded.
Amendment 422 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. A CSD shall make the records referred to in paragraph 1 available upon request to the competent authority and the relevant authorities referred to in Article 11, ESMA or another EU or Member State public authority with legal powers directly related to the records for the purpose of fulfilling their mandates.
Amendment 448 #
Proposal for a regulation
Article 35 – paragraph 3
Article 35 – paragraph 3
3. A CSD shall offer to keep records and accounts enabling a participant to distinguish the securities of each of that participant’s clients, if and as required by that participant (‘individual client segregation’).
Amendment 455 #
Proposal for a regulation
Article 35 – paragraph 5
Article 35 – paragraph 5
5. A CSD shall not use the securities of a participant for any purpose unless it has obtained previously and case by case that participant’s express consent.
Amendment 459 #
Proposal for a regulation
Article 36 – paragraph 6
Article 36 – paragraph 6
6. A CSD shall achieve settlement finality no later than by the end of the business day of the intended settlement due date. Upon demand by its user committee, it shall install systems that allow for intraday or real-time settlement.
Amendment 460 #
Proposal for a regulation
Article 36 – paragraph 7
Article 36 – paragraph 7
7. The cash proceeds of securities settlements shall be available for recipients to use no later than by the end of the business day of the intended settlement due date.
Amendment 487 #
Proposal for a regulation
Article 45 – paragraph 2
Article 45 – paragraph 2
2. LInteroperability link arrangements shall be submitted to authorisation as required under point (d) of Article 17(1).
Amendment 530 #
Proposal for a regulation
Article 52 – paragraph 1 a (new)
Article 52 – paragraph 1 a (new)
1 a. A credit institution shall only obtain an authorisation to provide the banking type of ancillary services listed in Section C of the Annex if this is its exclusive activity and it does not carry out other banking or CSD services.
Amendment 537 #
Proposal for a regulation
Article 52 – paragraph 2
Article 52 – paragraph 2
Amendment 563 #
Proposal for a regulation
Article 52 – paragraph 3
Article 52 – paragraph 3
3. A CSD that intends to settle the cash leg of all or part of its securities settlement system in accordance with Article 37(2) of this Regulation shall obtain authorisation to designate for this purpose an, through a transparent, open and objective call, one or several authorised credit institutions as provided in Title II of Directive 2006/48/EC, unless the competent authority referred to in Article 53(1) of this Regulation demonstrates, based on the available evidence, that the exposure of one credit institution to the concentration of risks under Article 57(3) and (4) of this Regulation is not sufficiently mitigated. In the latter case, the competent authority referred to in Article 53(1) may require the CSD to designate more than one credit institution. The designated credit institutions shall be considered as settlement agents.
Amendment 593 #
Proposal for a regulation
Article 53 – paragraph 4 – point b a (new)
Article 53 – paragraph 4 – point b a (new)
(b a) ESMA;
Amendment 594 #
Proposal for a regulation
Article 53 – paragraph 4 – point b b (new)
Article 53 – paragraph 4 – point b b (new)
(b b) EBA.
Amendment 641 #
Proposal for a regulation
Article 67 – paragraph 1
Article 67 – paragraph 1
1. Institutions that have been providing services listed in the Annex before the entry into force of this Regulation and have notified to ESMA as CSDs under the conditions set out under Article 19(4) shall seekobtain all authorisations that are necessary for the purposes of this Regulation within two years from the date of entry into force of this Regulationbefore 1 January 2015.
Amendment 642 #
Proposal for a regulation
Article 67 – paragraph 2
Article 67 – paragraph 2
2. Within two years from the date of entry into force of this Regulation, a CSDBy 1 January 2015, an institution providing CSD services as listed in Annex 1 established in a third country shall seekobtain either all authorisations from the competent authority of the Member State in which the CSD provides its services where it intends to establish and provide its services on the basis of Article 14, or recognition from ESMA where it intends to provide its services on the basis of Article 23.
Amendment 647 #
Proposal for a regulation
Article 70 – paragraph 3 – subparagraph 1
Article 70 – paragraph 3 – subparagraph 1
Article 3(1) shall apply from 1 January 202015.
Amendment 648 #
Proposal for a regulation
Annex 1 – heading 1
Annex 1 – heading 1
Part I. List of CSD Services
Amendment 665 #
Proposal for a regulation
Annex 1 – section C – title
Annex 1 – section C – title