13 Amendments of Neena GILL related to 2017/0136(COD)
Amendment 277 #
Proposal for a regulation
Article 2 – paragraph 1 – point -1 (new)
Article 2 – paragraph 1 – point -1 (new)
Regulation (EU) No 648/2012
Article 2 – paragraph 1 – point 1 a (new)
Article 2 – paragraph 1 – point 1 a (new)
(-1) In Article 2, the following point (1a) is inserted: “(1a) ‘CCP service’ means the CCP activities or services relating to a specific class of financial instruments as set out by point 15 of Article 4 of Directive 2014/65/EU or a specific class of derivatives as defined by point 6;”
Amendment 424 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point a
Article 2 – paragraph 1 – point 9 – point a
Regulation (EU) No 648/2012
Article 25 – paragraph 2 – point e
Article 25 – paragraph 2 – point e
(e) the CCP or a CCP service provided by that CCP has been determined as not systemically important or not likely to become systemically important (Tier 1 CCP) in accordance with paragraph 2a. ESMA may recognise a third country CCP either in whole or may limit the recognition to a particular service, activity or class of financial instrument.
Amendment 429 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b
Article 2 – paragraph 1 – point 9 – point b
Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – introductory part
Article 25 – paragraph 2 a – subparagraph 1 – introductory part
ESMA shall determine whether a CPafter consulting the members of the ESCB determine whether a CCP or a CCP service provided by that CCP is systemically important or likely to become systemically important for the financial stability of the Union or for one or more of its Member States (Tier 2 CCP) by taking into account all of the following criteria:
Amendment 431 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b
Article 2 – paragraph 1 – point 9 – point b
Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – point a
Article 25 – paragraph 2 a – subparagraph 1 – point a
(a) the nature, size and complexity of the CCP's business or a CCP service, including the value in aggregate terms and in each Union currency of transactions cleared by the CCP or a CCP service, or the aggregate exposure of the CCP or a CCP service engaged in clearing activities to its counterparties;
Amendment 439 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b
Article 2 – paragraph 1 – point 9 – point b
Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – point b
Article 25 – paragraph 2 a – subparagraph 1 – point b
(b) the effect that the failure of or a disruption to the CCP or a CCP service would have on financial markets, financial institutions, or the broader financial system, or on the financial stability of the Union or for one or more of its Member States;
Amendment 445 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b
Article 2 – paragraph 1 – point 9 – point b
Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – point c
Article 25 – paragraph 2 a – subparagraph 1 – point c
(c) the CCP or a CCP service's clearing membership structure;
Amendment 448 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b
Article 2 – paragraph 1 – point 9 – point b
Regulation (EU) No 648/2012
Article 25 – paragraph 2 a – subparagraph 1 – point d
Article 25 – paragraph 2 a – subparagraph 1 – point d
(d) the CCP's or a CCP service's relationship, interdependencies, or other interactions with other financial market infrastructures, other financial institutions and the broader financial system. In determining the systemic importance for the Union of specific third country CCP activities, ESMA shall examine each CCP service, activity or class of financial instruments provided to clearing members or trading venues established in the Union. However, when a third country CCP does not operate risk management standards at service level, ESMA shall assess systemic importance at the level of the entire CCP. In this case, ESMA shall recommend that the European Commission adopts an implementing act confirming that the CCP or some of the services provided by that CCP are systemically important or likely to become systemically important for the financial stability of the Union or for one or more of its Member States (Tier2 CCP).
Amendment 478 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b
Article 2 – paragraph 1 – point 9 – point b
Regulation (EU) No 648/2012
Article 25 – paragraph 2 c – subparagraph 1
Article 25 – paragraph 2 c – subparagraph 1
ESMA, in agreement with the relevant central banks of issue and commensurate with the degafter obtaining consent of the central banks of issue of all Union currencies of the financial instruments cleareed of systemic importance ofr to be cleared by theat CCP in accordance with paragraph 2a,and after consulting the ESRB may conclude that a CCP or the CCP service is of such substantialpecific systemic importance for the Union that compliance with the conditions set out in paragraph 2b and cooperation arrangements of Article 25(7a) does not sufficiently ensure the financial stability of the Union or of one or more of its Member States and should not therefore be recogniszed. In such a case, ESMA shallmay recommend that the Commission adopt an implementing act confirming that that CCP should not be recognised in accordance with paragraph 2b. denying the CCP or CCP service from being recognized in accordance with paragraph 2b. ESMA recommendation shall be based on a quantitative analysis in particular of EU firms portfolio structure. It should include all of the following elements: (a) The financial stability risks linked to all the criteria of article points(a) to (d) of Article 25 that cannot be addressed with the application of Article 25(2b) points (a) to (e); (b) The specific relevance to the Union of the financial stability risks represented by the products cleared, (c) the characteristics of the products cleared by the CCP, or the CCP service in particular the liquidity needs associated with such services and the materiality of liquidity and physical settlement requirements that need to be managed in case of stress event and could lead, in case of severe liquidity stress to access to central bank liquidity needs, (d) the substitutability of the clearing services provided by the CCP; (e) the potential consequences of including the outstanding cleared contracts within the scope of the implementing act; (f) the potential consequences, in terms of costs, of the denial of recognition on the Union clearing members, their clients, linked and interoperable FMIs and Union market as a whole, in particular as regards the impact of the decision on the competitiveness of Union clients and members and clients and members from other jurisdictions; (g) the potential impact consequences of denial of recognition in the Union for the financial stability of the Union or of one or more of its Member States;
Amendment 485 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point b
Article 2 – paragraph 1 – point 9 – point b
After submission of the recommendation referred to in the first subparagraph, the Commission may adopt an implementing act declaring that that CCP shall not be recognised pursuant to paragraph 2b and that it may only provide clearing services in the Union after it has been granted authorisation in accordance withspecifying that following the transitional period specified by the Commission in accordance with point (b) some or all services provided by that CCP shall not be recognised. The implementing act shall be accompanied by an impact assessment explaining why the specific systemic relevance of some or all services provided by that CCP cannot be addressed by the application of Article 25(2b) points (a) to (e)as well as the potential consequences for the competiveness and the financial stability of the Union or of one or more of its Member States. That implementing act should specify: (a) an appropriate adaptation period for the CCP, its clearing members and their clients, the length of which should be based on a quantitative assessment of EU firms portfolio structure; (b) the conditions under which the CCP or the relevant services may be recognised temporarily during the adaptation period referred to in point (a); (c) the need to include the outstanding cleared transactions within the scope of the implementing act based on a quantitative assessment of EU firms portfolio structure; (d) any measures that shall be taken during the adaptation period, in order to limit the potential costs to clearing members and their clients, in particular those established in the Union. This implementing act shall be adopted in accordance with the examination procedure referred to in Article 1486(2).
Amendment 500 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point c
Article 2 – paragraph 1 – point 9 – point c
Regulation (EU) No 648/2012
Article 25 – paragraph 5
Article 25 – paragraph 5
5. ESMA shall, after consulting the authorities and entities referred to in paragraph 3, review the recognition of the CCP established in a third country where that CCP has extended the range of its activities and services in the Union and in any case at least every two years. That review shall be conducted in accordance with paragraphs 2, 3 and 4. ESMA may withdraw the recognition of that CCP where the conditions set out in paragraph 2 are no longer met and in the same circumstances as those described in Article 20.
Amendment 506 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point f
Article 2 – paragraph 1 – point 9 – point f
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – first sentence
Article 25 – paragraph 7 – first sentence
Amendment 508 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point f a (new)
Article 2 – paragraph 1 – point 9 – point f a (new)
Regulation (EU) No 648/2012
Article 25 – paragraph 7
Article 25 – paragraph 7
(fa) paragraph 7 is replaced by the following: 7. ESMA shall establish effective cooperation arrangements with the relevant competent authorities of third countries whose legal and supervisory frameworks have been recognised as equivalent to this Regulation in accordance with paragraph 6. Such arrangements shall specify at least: (a) the mechanism for the exchange of informationCCPs to be recognized pursuant par 2a covering the following: (-a) the mechanism for the coordination of supervisory activities, including the exchanges of information and reporting to be made in case of substantial changes to risk models and parameters, extension of CCP activities and services, changes in the client account structure and in the use of payment systems that substantially affect the Union; (-aa) procedures for the coordination of supervisory activities between ESMA and the third country competent authorities of the third countries concernedy in case of a default of a clearing member established in the Union or the default of a clearing member with clients or indirect clients established in the Union including for the liquidation of assets; (a) exchange of information between ESMA and the third country competent authority, including access to all information requested by ESMA regarding CCPs authoriszed in that third countriesy; (b) the mechanism for prompt notification to ESMA where a third- country competent authority deems a third country CCP it is supervisinges to be in breach of the conditions of its authorisation or of other law to which it is subject; (c) the mechanism for prompt notification to ESMA by a third- country competent authority where a CCP it is supervisinges has been granted the right to provide clearing services to clearing members or clients established in the Union; (d) the procedures concerning the coordination of supervisory activities including, where appropriate, on-site inspections; (https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32012R0648&from=EN)(da) the consultation of ESMA and relevant Member States’ resolution authorities designated according to [Article 3 of Regulation COM(2016) 856 final] in drawing up the resolution plan of the third country CCP that would substantially affect the Union; Or. en
Amendment 509 #
Proposal for a regulation
Article 2 – paragraph 1 – point 9 – point g
Article 2 – paragraph 1 – point 9 – point g
Regulation (EU) No 648/2012
Article 25 – paragraph 7 – point e
Article 25 – paragraph 7 – point e