Activities of Olle SCHMIDT related to 2010/0250(COD)
Plenary speeches (1)
Explanations of vote
Amendments (24)
Amendment 126 #
Proposal for a regulation
Title
Title
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on OTC derivatives, central counterparties and trade repositories(Text with EEA relevance) (This amendment applies throughout the text.)
Amendment 138 #
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) The scope of the regulation should consequently cover as many derivative transactions as possible.
Amendment 153 #
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) In drafting delegated acts and technical implementing standards, special consideration shall be given to the needs of long term savings institutions to provide long term savings products to consumers. To this end the Regulation should not result in excessive costs for long term savings institutions. One of the tools by which to achieve that objective is the proper application of the proportionality principle.
Amendment 154 #
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12 b) For long term savings institutions, the posting of government and high quality corporate bonds as an alternative to cash shall be permitted to cover initial and variation margins.
Amendment 157 #
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
(14 a) Competent authorities may permit counterparties to apply the rules established to manage the risks for derivatives not considered suitable for CCP clearing to derivatives declared subject to the clearing obligation where this would reduce levels of counterparty credit risk because the counterparties are also entering into other derivative contracts with the same entity.
Amendment 165 #
Proposal for a regulation
Recital 16
Recital 16
(16) Where appropriate, rules applicable to financial counterparties, should also apply to non-financial counterparties. It is recognised that non-financial counterparties use OTC-contracts in order to cover themselves against commercial risks directly linked to their commercial activities. Consequently, in determining whether a non-financial counterparty should be subject to the clearing obligation, consideration should be given to the purpose for which that non-financial counterparty uses OTC derivatives and to the size of the exposures that it has in those instruments. When establishing the threshold for the clearing obligation, ESMA should consult all relevant authorities, as for example regulators responsible for commodity markets, in order to ensure that the particularities of these sectors are fully taken into account. Moreover, by 31 December 2013, the Commission shall assess the systemic importance of the transactions of non-financial firms in OTC derivatives in different sectors, including the energy sector as well as risk management practices that they use for such instruments and access to transparent prices for valuation purposes.
Amendment 194 #
Proposal for a regulation
Recital 31 a (new)
Recital 31 a (new)
(31 a) Nothing in this Regulation should attempt to restrict, or impede, a CCP in one jurisdiction from clearing a product denominated in the currency of another EU Member State or the currency of a third country, or require a CCP to have a banking licence in order to have access to day-to-day central bank liquidity.
Amendment 213 #
Proposal for a regulation
Recital 43
Recital 43
(43) Trade repositories collect data for regulatory purposes that are relevant to authorities in all Member States. In view of the fact that surveillance of trade repositories does not have any fiscal implications and that many authorities across Member States will need access to the data maintained by trade repositories, ESMA should assume responsibility for the registration, withdrawal and surveillance of trade repositories. In view of the global nature of financial markets, ESMA should be directly responsible for recognising trade repositories established in third countries and thus allowing them to provide their services and activities to entities established in the Union for the purposes of this Regulation, provided that the Commission has recognised the legal and supervisory framework of that third country as equivalent to the Union framework and that certain other conditions are met.
Amendment 269 #
Proposal for a regulation
Article 2 – paragraph 1 – point 7 a (new)
Article 2 – paragraph 1 – point 7 a (new)
(7 a) By'pension scheme' means a pension scheme established pursuant to Directive 2003/41/EC or any other arrangement recognised under national law as a scheme established for the purposes of retirement provision.
Amendment 289 #
Proposal for a regulation
Article 3 – paragraph 1 – subparagraph 1
Article 3 – paragraph 1 – subparagraph 1
A financial counterparty shall clear all OTC derivative contracts which are considered eligible pursuant to Article 4 and are concluded with other financial counterparties in the relevant CCPs listed in the register as referred to in Article 4(4). (This amendment applies throughout the text.)
Amendment 314 #
Proposal for a regulation
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
1 a. Paragraph 1 shall not apply to derivative contracts entered into by pension schemes or managers of pension schemes if such contracts contribute to a reduction of investment risks and the outstanding contracts are collateralized and can be valued on a daily basis in accordance with Article 8.
Amendment 325 #
Proposal for a regulation
Article 3 a (new)
Article 3 a (new)
Article 3 a The relevant competent authority may permit a financial counterparty to apply the procedures and arrangements referred to in Article 8 to derivative contracts concluded with another entity pertaining to derivatives declared subject to the clearing obligation under paragraph 1, instead of clearing the contracts in a CCP, where: (a) the counterparty also concludes other derivative contracts with the same entity which do not pertain to a class of derivatives declared subject to the clearing obligation; and (b) the conclusion of the contracts would [significantly] reduce the level of counterparty credit risk to which the [financial] counterparty is exposed under its derivative contracts with that entity. Permission shall only be given if the relevant competent authority is satisfied that the [financial] counterparty's systems for the measurement of counterparty credit risk are sound and implemented with integrity. The relevant competent authority for a financial counterparty is the competent authority in the Member State in which the counterparty is established responsible for supervising that counterparty under the legislation referred to in Article 2(6) (or, in the case of an alternative investment fund, the competent authority responsible for supervising the alternative investment fund manager of the fund). [The relevant competent authority for a non-financial counterparty is the competent authority in the Member State in which the counterparty is established which is designated in accordance with Article 18.] ESMA shall issue guidelines on the application of this paragraph in accordance with Article 16 of Regulation (EU) No 1095/2010.
Amendment 340 #
Proposal for a regulation
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2 a. ESMA may define under certain conditions and circumstances under which financial counterparties and non- financial counterparties referred to in Article 7(2) and certain OTC derivative contracts may be exempted from the clearing obligation.
Amendment 397 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
A CCP that has been authorised to clear eligible OTC derivative contracts shall accept clearing such contracts on a non- discriminatory and transparent basis, regardless of the venue of execution. Without prejudice to Article 32a, a CCP may require that those venues comply with the operational and technical requirements established by the CCP.
Amendment 412 #
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1 a. The CCP shall establish policies and procedures sufficient to ensure compliance with these obligations under paragraph 1, including: a) Using or accommodating for trading venues communication protocols consistent with Article 32a; b) Offering the venue the right to designate a technology provider for the purposes of accessing the system and purchase an unbundled service; c) Publishing full and transparent clearing costs for all market users sufficient to enable customers to understand the services with which they will be provided and the prices they will have to pay for these services, including discount schemes; d) Accounting separately for the costs and revenues relating to the provision of CCP services and disclosing such information to their Competent Authorities on the basis of accounting standards adopted under Regulation (EC) No 1606/2002. The CCP and home competent authorities of the requesting trading venue and CCP may only deny the trading venue access to the CCP where such access would threaten the smooth and orderly functioning of markets. ESMA shall facilitate the adoption of a joint opinion between relevant competent authorities in accordance with its settlement of disagreement powers under Article 19 of Regulation EU 1095/2010 (ESMA Regulation). A venue of execution offering trading in clearing eligible derivatives contracts shall provide trade feeds to any CCP that has been authorised to clear eligible derivative contracts upon request by the CCP.
Amendment 504 #
Proposal for a regulation
Article 7 – paragraph 4
Article 7 – paragraph 4
Amendment 641 #
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. A CCP established in a third country may provide clearing services to entitieFinancial and non-financial counterparties may satisfy their clearing obligation referred to in Article 3 with CCPs established in the Uniona third country only where that CCP is recognised by ESMA.
Amendment 696 #
Proposal for a regulation
Article 26 – paragraph 3
Article 26 – paragraph 3
3. The risk committee shall advise the board on any arrangements that may impact the risk management of the CCP, such as, but not limited to, a significant change in its risk model, the default procedures, the criteria for accepting clearing members or the clearing of new classes of instruments. The advice of the risk committee is not required for the daily operations of the CCP or in emergency. Reasonable efforts should be made to consult the Risk Committee in emergency situations, where such consultation will not undermine the efficient management of such situations.
Amendment 730 #
Proposal for a regulation
Article 32 a (new)
Article 32 a (new)
Article 32a Straight Through Processing 1. With the aim of promoting straight- through processing (STP) across the entire transaction flow, CCPs shall use or accommodate in their systems to the participants and market infrastructures they interface with, in their communication procedures with participants and with the market infrastructures they interface with, the relevant international communication procedures and standards for messaging and reference data in order to facilitate efficient clearing and settlement across systems. 2. Powers are delegated to the Commission to adopt regulatory technical standards specifying the process for defining which international communication procedures and standards for messaging and reference data are to be considered relevant for the purposes of paragraph 1. The regulatory technical standards referred to in the first subparagraph shall be adopted in accordance with Articles [x] of Regulation EU 1095/2010 [ESMA Regulation]. ESMA shall submit drafts for those regulatory technical standards to the Commission by 30 June 2012]
Amendment 770 #
Proposal for a regulation
Article 37 – paragraph 2 a (new)
Article 37 – paragraph 2 a (new)
2 a. A CCP shall make arrangements so it is possible for the clearing members to offer clients the opportunity to use segregated accounts. Clearing members shall, as a minimum, offer clients the choice of using segregated accounts and the option of using accounts whereby assets are held by an independent third party.
Amendment 771 #
Proposal for a regulation
Article 37 – paragraph 2 b (new)
Article 37 – paragraph 2 b (new)
2 b. A CCP shall appoint one or more backup clearing member for each of its clearing members. The backup clearing member appointment process shall guarantee portability of clients’ assets and positions even under a multiple defaults scenario.
Amendment 778 #
Proposal for a regulation
Article 37 – paragraph 3
Article 37 – paragraph 3
3. Depending on the level of segregation chosen by a client, tThe CCP shall ensure that it is able to transfer on request at a pre- defined trigger event, without the consent of the clearing member and within a pre- defined transfer period its assets and positions to anotherbackup clearing member. That other as set out in Paragraph 2b. The backup clearing member shall only be obliged to accept those assets and positions where it has previously entered into a contractual relationship, as set out in Paragraph 2b, for that purpose.
Amendment 853 #
Proposal for a regulation
Article 43 – paragraph 1
Article 43 – paragraph 1
1. A CCP shall only accept highly liquid collateral, such as cash, government and high quality corporate bonds, with minimal credit and market risk to cover its initial and ongoing exposure to its clearing members. It shall apply adequate haircuts to asset values that 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.
Amendment 890 #
Proposal for a regulation
Article 48 – paragraph 2
Article 48 – paragraph 2
2. When establishing an interoperability arrangement with another CCP for the purpose of providing services to a particular trading venue, the CCP shall have non discriminatory access to the data that it needs for the performance of its functions from that particular trading venue to the extent that the CCP complies with the operational and technical requirements established by the venue and to the relevant settlement system.