Activities of Leonardo DOMENICI related to 2010/0250(COD)
Plenary speeches (1)
Derivatives, central counterparties and trade repositories (debate)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories PDF (888 KB) DOC (996 KB)
Amendments (88)
Amendment 222 #
Proposal for a regulation
Recital 53 a (new)
Recital 53 a (new)
Amendment 223 #
Proposal for a regulation
Recital 53 b (new)
Recital 53 b (new)
(53 b) The rise in price volatility on food and agricultural markets calls for the adoption of an appropriate regulatory framework for commodity markets. The Commission shall address these concerns in the incoming reviews of the Market in Financial Instruments Directive and the Market Abuse Directive in which the Commission shall provide for stringent reporting obligations and other appropriate requirements to prevent systemic risks and manipulative practices, including margin requirements, position limits and punitive disgorgement of profit.
Amendment 224 #
Proposal for a regulation
Recital 53 c (new)
Recital 53 c (new)
(53 c) The sale of complex derivative products to local public authorities calls for special attention. The Commission shall include specific proposals in the incoming review of the Market in Financial Instruments Directive to address this concern. These proposals will include specific due diligence, information and disclosure requirements.
Amendment 230 #
Proposal for a regulation
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
1 a. Articles 3 through 5 shall not apply to derivative contracts executed on a regulated market or on a multilateral trading venue provided that such contracts are cleared by a CCP. This is without prejudice to the clearing obligation applying to the same contracts when executed OTC.
Amendment 246 #
Proposal for a regulation
Article 2 – paragraph 1 – point 3
Article 2 – paragraph 1 – point 3
(3) ’clearing' means the process of establishing settlement positions, including the calculation of net positions, and the process of checking that financial instruments, cash or both are available to secure the exposures arising from a transacby which a third party interposes itself, directly or indirectly, between the transaction counterparties in order to assume their rights and obligations;
Amendment 250 #
Proposal for a regulation
Article 2 – paragraph 1 – point 4
Article 2 – paragraph 1 – point 4
(4) ’class of derivatives' means a number of OTC derivative contracts that share common, essential charactesubset of derivatives sharing common and essential characteristics which include, but may not be limited to: relationship with the underlying asset, type of underlying asset, pay-off profile and currency of notional. Derivatives belonging to the same class may have different maturistices;
Amendment 256 #
Proposal for a regulation
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
(5) ’over the counter (OTC) derivatives' means derivative contracts whose execution does not take place on a regulated market as defined by Article 4 (1) point 14 of Directive 2004/39/EC or on any other organised trading venue established under Directive 2004/109/EC;
Amendment 272 #
Proposal for a regulation
Article 2 – paragraph 1 – point 12
Article 2 – paragraph 1 – point 12
(12) ’client' means an undertaking with a direct or indirect contractual relationship with a clearing member or one of its affiliates which enables that undertaking to clear its transactions withrough that clearing member's use of that CCP;
Amendment 283 #
Proposal for a regulation
Article 2 – paragraph 1 – point 22 b (new)
Article 2 – paragraph 1 – point 22 b (new)
(22 b) ‘trade compression’ means the process of legally substituting a given set of derivative contracts with a different set of contracts characterised, from the perspective of each participant to the process, by: a) lower number of contracts and aggregated notional value; and b) the same or a similar risk profile as the original set of derivative contracts;
Amendment 284 #
Proposal for a regulation
Article 2 – paragraph 1 – point 22 a (new)
Article 2 – paragraph 1 – point 22 a (new)
(22 a) ‘occupational pension scheme" means either an institution for occupational retirement provision as defined in Directive 2003/41/EC or an arrangement where the provisions of national law accord particular benefits to the client in relation to the product by virtue of its use for the purposes of retirement planning.
Amendment 286 #
Proposal for a regulation
Article 2 – paragraph 1 – point 22 c (new)
Article 2 – paragraph 1 – point 22 c (new)
(22 c) 'acting in concert' means acting in concert as defined in Article 10 (a) of Directive 2004/109/EC
Amendment 287 #
Proposal for a regulation
Article 2 – paragraph 1 – point 22 d (new)
Article 2 – paragraph 1 – point 22 d (new)
(22 d) 'haircuts' means (…)
Amendment 295 #
Proposal for a regulation
Article 3 – paragraph 1 – subparagraph 1 a (new)
Article 3 – paragraph 1 – subparagraph 1 a (new)
That clearing obligation shall apply to all OTC derivative contracts that are classified as eligible for the clearing obligation following publication of the ESMA decision pursuant to Article 4(2)a.
Amendment 318 #
Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 1 (new)
Article 3 – paragraph 2 – subparagraph 1 (new)
When complying with the clearing obligation under paragraph 1, clearing members shall distinguish in separate accounts with the CCP the positions of each client. Clients shall be known to the CCP.
Amendment 323 #
Proposal for a regulation
Article 3 – paragraph 2 a (new)
Article 3 – paragraph 2 a (new)
2 a. Derivative contracts used for the purposes of risk mitigation by occupational pension schemes shall be excluded from the clearing obligation set out in Article 3.
Amendment 400 #
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 basis, regardless of the venue of execution subject to the application by the CCP of its membership, risk management, operational, technical and legal requirements.
Amendment 415 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1
Article 6 – paragraph 1 – subparagraph 1
Amendment 423 #
Proposal for a regulation
Article 6 – paragraph 1 – subparagraph 1 a (new)
Article 6 – paragraph 1 – subparagraph 1 a (new)
The reporting obligations under subparagraph 1 shall be satisfied by the CCP where the derivative contracts subject to the clearing obligation are cleared. When derivative contracts are subject to a process of trade compression, the reporting obligations under subparagraph 1 shall be satisfied by the operator of the trade compression service.
Amendment 435 #
Proposal for a regulation
Article 6 – paragraph 2 – subparagraph 1
Article 6 – paragraph 2 – subparagraph 1
Where a trade repository is not able to record the details of an OTC derivative contract, financial counterparties shall report the details of their positions in those contracts to the competent authority designated in accordance with Article 48 of Directive 2004/39/EC.ESMA
Amendment 439 #
Proposal for a regulation
Article 6 – paragraph 2 – subparagraph 2
Article 6 – paragraph 2 – subparagraph 2
The details to be reported to the competent authority shall be at leastESMA shall be identical to those that would be reported to the trade repository.
Amendment 441 #
Proposal for a regulation
Article 6 – paragraph 3 – subparagraph 1
Article 6 – paragraph 3 – subparagraph 1
A counterparty which is subject to the reporting obligation may delegate the reporting of the details of the OTC derivative contract to the other counterparty.
Amendment 452 #
Proposal for a regulation
Article 6 – paragraph 4 – subparagraph 2 – point a
Article 6 – paragraph 4 – subparagraph 2 – point a
(a) the parties to the contract and, where different, the beneficiary of the rights and obligations arising from it are appropriately identifiedin case of transactions executed on regulated markets or multilateral trading facilities, their clients and clearing members;
Amendment 468 #
Proposal for a regulation
Article 7 – paragraph 1 – subparagraph 1
Article 7 – paragraph 1 – subparagraph 1
Where a non-financial counterparty takes net positions in OTC derivative contracts that exceeding the informationclearing threshold to be determined pursuant to paragraph 3(a), it shall notify the competent authority designated in accordance with Article 48 of Directive 2004/39/EC thereof, providing justification for taking those positionb) for a period of 25 consecutive business days, it shall be subject to the clearing obligation set out in Article 3 with regard to all its eligible derivative contracts.
Amendment 483 #
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 1
Article 7 – paragraph 3 – subparagraph 1
Powers are delegated to the Commission to adopt regulatory technical standards specifying: (a) the information the clearing threshold; (b) and the clearing tresholriteria for establishing which derivative contracts are objectively measurable as reducing risks directly related to the commercial or treasury activity. deleted
Amendment 497 #
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 2
Article 7 – paragraph 3 – subparagraph 2
Those thresholds shall be determined taking into account the systemic relevance of the sum of net positions and exposures by counterparty per class of derivatives.
Amendment 508 #
Proposal for a regulation
Article 7 – paragraph 4
Article 7 – paragraph 4
4. In calculating the positions referred to in paragraph 2, OTCArticle 7, derivative contracts entered into by a non-financial counterparty that are objectively measurable as reducing risk directly linked to the commercial or treasury activity of that counterparty shall not be taken into account.
Amendment 515 #
Proposal for a regulation
Article 7 – paragraph 5
Article 7 – paragraph 5
5. The Commission, in consultation with ESMA, ESRB and other relevant authorities, shall periodically review the thresholds established in paragraph 32 and amend them, where necessary.
Amendment 521 #
Proposal for a regulation
Article 8 – paragraph 1 – subparagraph 1 – point a
Article 8 – paragraph 1 – subparagraph 1 – point a
(a) where possible,adequate electronic means ensuring the timely confirmation of the terms of the OTC derivative contract;
Amendment 523 #
Proposal for a regulation
Article 8 – paragraph 1 – subparagraph 1 – point b
Article 8 – paragraph 1 – subparagraph 1 – point b
(b) standardised processes which are robust, resilient and auditable processes in order to reconcile portfolios, to manage the associated risk and to identify disputes between parties early and resolve them, and to monitor the value of outstanding contracts.
Amendment 539 #
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Based on guidelines adopted by ESA (ESMA) and taking into consideration the Commission's Communication on reinforcing sanctioning regimes in the financial sector, Member States shall lay down the rules on penalties applicable to infringements of the rules under this Title and shall take all measures necessary to ensure that they are implemented. Those penalties shall include at least administrative fines. The penalties provided for shall be effective, proportionate and dissuasive.
Amendment 544 #
Proposal for a regulation
Article 9 – paragraph 3
Article 9 – paragraph 3
3. The Commission, with the assistance of ESMA, shall verify that the administrative penalties referred to in paragraph 1 and the thresholds referred to in Article 7 (1) and (2) are effectively and consistently applied.
Amendment 553 #
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. The authorisation shallto the CCP shall be granted only for activities linked to clearing and specify the services or activities which the CCP is authorised to provide or perform including the classes of financial instruments covered by the authorisation.
Amendment 560 #
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
1. A CCP shall have a permanent, available and separate initial capital of at least EUR 15 million to be authorised pursuant to Article 10.
Amendment 571 #
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. The competent authority shall only grant authorisation where it is fully satisfied that the applicant CCP complies with all the requirements set out in this Regulation, the requirements adopted pursuant to Directive 98/26/EC, and following the joint positive opinion of the college referred to in Article 15 and the opinion of ESMA.
Amendment 572 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. The applicant CCP shall provide all information, necessary to enable the competent authority to satisfy itself that the applicant CCP has established, at the time of initial authorisation, all the necessary arrangements to meet its obligations set out in this Regulation. The competent authority shall immediately transmit all information received from the applicant CCP to ESMA and the College.
Amendment 577 #
Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 1
Article 14 – paragraph 1 – subparagraph 1
The competent authority of the mMember State of establishment of a CCP shall establish, and chairmanage a college to facilitate the exercise of the tasks referred to in Articles 10., 11, 46 and 48.
Amendment 579 #
Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 2 – introductory part
Article 14 – paragraph 1 – subparagraph 2 – introductory part
The college shall consist of:be chaired by ESMA and consist of no more than 7 members;
Amendment 582 #
Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 2 – point c
Article 14 – paragraph 1 – subparagraph 2 – point c
Amendment 584 #
Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 2 – point d
Article 14 – paragraph 1 – subparagraph 2 – point d
Amendment 586 #
Proposal for a regulation
Article 14 – paragraph 1 – subparagraph 2 – point e
Article 14 – paragraph 1 – subparagraph 2 – point e
Amendment 590 #
Proposal for a regulation
Article 14 – paragraph 2 – point a
Article 14 – paragraph 2 – point a
(a) the preparation of the joint opinion referred to in Article 15;
Amendment 595 #
Proposal for a regulation
Article 14 – paragraph 3 – subparagraph 1
Article 14 – paragraph 3 – subparagraph 1
The establishment and functioning of the college shall be based on a written agreement between among all its members.
Amendment 600 #
Proposal for a regulation
Article 15 – title
Article 15 – title
Amendment 603 #
Proposal for a regulation
Article 15 – paragraph 1 – subparagraph 1
Article 15 – paragraph 1 – subparagraph 1
The competent authority of the Member State where the CCP is established shall conduct a risk assessment of the CCP and submit a report to the college within four months of the submission after having received the application by the CCP.
Amendment 608 #
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. ESMA shall facilitate the adoption of a jointthe opinion in accordance with its settlement of disagreement powers under Article 11 of Regulation …/… [ESMA Regulation] and its general coordination function under Article 16 of the same Regulation. It shall have no voting rights on joint opinions of the college.
Amendment 611 #
Proposal for a regulation
Article 15 – paragraph 2 a (new)
Article 15 – paragraph 2 a (new)
2 a. The college shall look to form its opinion on the basis of consensus otherwise it should reach its opinion on the basis of a majority of its members.
Amendment 614 #
Proposal for a regulation
Article 16 – paragraph 1 – point d
Article 16 – paragraph 1 – point d
(d) has seriously and systematicalrepeatedly infringed the requirements set out in this Regulation;
Amendment 621 #
Proposal for a regulation
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
The CCP shall be subject to on-site inspections by ESMA
Amendment 628 #
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Competent authorities shall cooperate closely with each other and with ESMA. ESMA shall be provided with adequate resources by the European Institutions in order to effectively perform the tasks it is allocated in this Regulation.
Amendment 630 #
Proposal for a regulation
Article 20 – paragraph 1 – subparagraph 2
Article 20 – paragraph 1 – subparagraph 2
No confidential information they may receive in the course of their duties may be divulged to any person or authority whatsoever, except in summary or aggregate form such that an individual CCP, trade repository or any other person cannot be identified, without prejudice to cases covered by criminal law or taxation law or the other provisions of this Regulation.
Amendment 644 #
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 entities established in the Union only where that CCP is recognised by ESMA. Third- country CCPs shall be subject to review by a process of similar rigueur to the one EU CCPs are subject to.
Amendment 651 #
Proposal for a regulation
Article 23 – paragraph 2 – point b a (new)
Article 23 – paragraph 2 – point b a (new)
(b a) the third country is subject of a decision by the Commission stating that the standards to prevent money laundering and terrorist financing meet the Financial Action Task Force requirements and are to the same effect as the requirements set out in Directive 2005/60/EC.
Amendment 652 #
Proposal for a regulation
Article 23 – paragraph 2 – point b b (new)
Article 23 – paragraph 2 – point b b (new)
(b b) the third country has signed an agreement with the home Member State of the authorised CCP which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention and ensures an effective exchange of information in tax matters, including, if any, multilateral tax agreements.
Amendment 656 #
Proposal for a regulation
Article 23 – paragraph 2 – point c a (new)
Article 23 – paragraph 2 – point c a (new)
Amendment 667 #
Proposal for a regulation
Article 23 – paragraph 4 – point b a (new)
Article 23 – paragraph 4 – point b a (new)
(b a) the procedures relating to the withdrawal of the authorisation granted to the CCP.
Amendment 681 #
Proposal for a regulation
Article 25 – paragraph 2 – subparagraph 1
Article 25 – paragraph 2 – subparagraph 1
A CCP shall have a board of which at least one thirdquarter, but no less than two, of its members are independent. The compensation of the independent and other non-executive members of the board shall not be linked to the business performance of the CCP.
Amendment 683 #
Proposal for a regulation
Article 25 – paragraph 2 – subparagraph 2
Article 25 – paragraph 2 – subparagraph 2
The members of the board, including its independent members, shall be of sufficiently good repute and have sufficientadequate expertise in financial services, risk management and clearing services.
Amendment 688 #
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
1. A CCP shall establish a risk committee, which shall be composed of representatives of its clearing members and independent members of the boardmarket experts including at least one representative of the designated competent authority. The risk committee may invite employees of the CCP to attend risk committee meetings in a non-voting capacity. The advice of the risk committee shall be independent from any direct influence by the management of the CCP.
Amendment 692 #
Proposal for a regulation
Article 26 – paragraph 2
Article 26 – paragraph 2
2. A CCP shall clearly determine the mandate, the governance arrangements to ensure its independence, the operational procedures, the admission criteria and the election mechanism for risk committee members. The governance arrangements shall be publicly available and shall, at least, determine that the risk committee is chaired by an independent member of the board, reports directly to the board and holds regular meetings.
Amendment 697 #
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. A CCP shall maintain, for a period of at least tenfive 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.
Amendment 698 #
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. A CCP shall maintain, for a period of at least tenfive years following the termination of a contract, all information on all contracts it has processed. That information shall at a minimum enable the identification of the original terms of a transaction before clearing by that CCP.
Amendment 709 #
Proposal for a regulation
Article 28 – paragraph 4
Article 28 – paragraph 4
4. Where the persons referred to in paragraph 1 exercise an influence which is likely to be prejudicial to the sound and prudent management of the CCP, the competent authority shall take appropriate measures to terminate that situation or withdraw the authorisation of the CCP.
Amendment 712 #
Proposal for a regulation
Article 29 – paragraph 3 – subparagraph 2
Article 29 – paragraph 3 – subparagraph 2
For the period between the date of request for information by the competent authority and the receipt of a response thereto by the proposed acquirer, the assessment period shall be interrupted. The interruption shall not exceed 20 working days. Any further requests by the competent authority for completion or clarification of the information shall be at its discretion but may not result in an interruption of the assessment period.
Amendment 714 #
Proposal for a regulation
Article 29 – paragraph 6
Article 29 – paragraph 6
6. Where the competent authority does not oapposrove the proposed acquisition within the assessment period, it shall be deemed to be approvrejected.
Amendment 722 #
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. A CCP shall maintain and operate effective written organisational and administrative arrangements to identify and manage any potential conflicts of interest between itself, including its managers, employees, or any person directly or indirectly linked to them by control or close links and its clearing members or their clients or between them. It shall maintain and implement adequate resolution procedures whenever possible conflicts of interest occur in order to remove them.
Amendment 741 #
Proposal for a regulation
Article 33 – paragraph 1 – point i a (new)
Article 33 – paragraph 1 – point i a (new)
(i a) activities linked to risk management shall not be outsourced.
Amendment 759 #
Proposal for a regulation
Article 37 – paragraph 1
Article 37 – paragraph 1
1. A CCP shall keep records and accounts that shall enable it, at any time and without delay, to identify and segregate the assets anddistinguish the positions of one clearing member from the assets and positions of any other clearing member and from its own assetsCCP with whom it has entered into an interoperability arrangement, and to comply with the requirements set forth in paragraphs 2 and 3.
Amendment 763 #
Proposal for a regulation
Article 37 – paragraph 2
Article 37 – paragraph 2
2. A CCP shall require each cClearing member toshall distinguish and segregate inin separate accounts with the CCP the assets and positions of thate clearing member from those of its clients. A CCP shall allow clients to have a more detailed segregation of their assets and positions. The CCP shall publicly disclose the risks and costs associated with the different levels of segregation.
Amendment 776 #
Proposal for a regulation
Article 37 – paragraph 3
Article 37 – paragraph 3
3. Depending on the level of segregation chosen by a client, the 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 another clearing member. That other clearing member shall only be obliged where it has previously entered into a contractual Clearing members shall distinguish in separate accounts with the CCP the positions of each client (“full segrelgationship for that purpose”).
Amendment 781 #
Proposal for a regulation
Article 37 – paragraph 3 – subparagraph 1 (new)
Article 37 – paragraph 3 – subparagraph 1 (new)
Clients shall be given by clearing members the possibility to have their positions recorded in omnibus accounts with the CCP (opt-out).
Amendment 789 #
Proposal for a regulation
Article 37 – paragraph 4
Article 37 – paragraph 4
4. Provided that the client is not exposed to the default of the clearing member through which it has access to the CCP or of any other clients, Annex III, Part 2, point 6 of Directive 2006/48/EC shall applyA CCP shall keep records that shall enable it, at any time and without delay, to identify the assets posted in relation to each account kept in accordance with the present Article.
Amendment 794 #
Proposal for a regulation
Article 37 – paragraph 5
Article 37 – paragraph 5
5. The requirements set out in paragraphs 1 to 4 shall prevail over any conflicting laws, Provided that a client has selected full segregulations and administrative provisions of the Member States that prevent the parties from fulfilling them, Annex III, Part 2, point 6 of Directive 2006/48/EC shall apply.
Amendment 809 #
Proposal for a regulation
Article 39 – paragraph 2
Article 39 – 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 and parameters shall be validated by the competent authority and subject to a jointn opinion of the college referred to in Article 15.
Amendment 813 #
Proposal for a regulation
Article 39 – paragraph 3 a (new)
Article 39 – paragraph 3 a (new)
3 a. A CCP shall call and collect margins that are adequate to cover the positions registered in each account kept in accordance with article 37 with respect to specific financial instruments. A CCP may calculate margins with respect to a portfolio of financial instruments only when the price correlation among the financial instruments included in the portfolio is high and stable.
Amendment 816 #
Proposal for a regulation
Article 39 – paragraph 4
Article 39 – paragraph 4
Amendment 821 #
Proposal for a regulation
Article 39 – paragraph 5 – subparagraph 1
Article 39 – paragraph 5 – subparagraph 1
Powers are delegated to the Commission to adopt regulatory technical standards specifying the appropriate percentage and time horizon, as referred to in paragraph 1, to be considered for the different classes of financial instruments and the conditions referred to in paragraph 3a.
Amendment 832 #
Proposal for a regulation
Article 40 – paragraph 2
Article 40 – paragraph 2
2. A CCP shall establish the minimum size of contributions to the default fund and the criteria to calculate the contributions of the single clearing members. The contributions shall be proportional to the exposures of each clearing member, in order to ensure that the contributions to the default fund at least enable the CCP to withstand the default of the two clearing member to which it has the largest exposures or of the second and third largest clearing members, if the sum of their exposures is larger.
Amendment 840 #
Proposal for a regulation
Article 41 – paragraph 2
Article 41 – paragraph 2
2. A CCP shall develop scenarios of extreme but plausible market conditions, which include the most volatile periods that have been experienced by the markets for which the CCP provides its services. The default fund referred to in Article 40 and the other financial resources referred to in paragraph 1 shall at all times enable the CCP to withstand the default of the two clearing members to which it has the largest exposures and shall enable the CCP to withstand sudden sales of financial resources and rapid reductions in market liquidity.
Amendment 863 #
Proposal for a regulation
Article 44 – paragraph 1
Article 44 – paragraph 1
1. A CCP shall only invest its financial resources in highly liquid financial instruments with minimal market and credit risk. The investments shall be capable of being liquidated rapidly with minimal adverse price effect. A CCP shall invest a substantial proportion of its financial resources in reserves with a central bank. Collateral segregated pursuant to Article 49a, paragraph 2, shall not be counted for the purpose of subparagraph 1.
Amendment 883 #
Proposal for a regulation
Article 47 – paragraph 1
Article 47 – paragraph 1
1. A CCP shall, where practical and available, use central bank money to settle its transactions. Where central bank money is not accessibleused, steps shall be taken to strictly limit credit and liquidity risks.
Amendment 891 #
Proposal for a regulation
Article 48 – paragraph 2 a (new)
Article 48 – paragraph 2 a (new)
2 a. A CCP shall grant non- discriminatory access to Securities Settlement Systems (SSS) requesting to obtain data feed.
Amendment 892 #
Proposal for a regulation
Article 48 – paragraph 3
Article 48 – paragraph 3
3. Entering into an interoperability arrangement or, accessing a data feed or a settlement systemor granting a data feed referred to in paragraphs 1, 2 and 2,3 shall only be restricted, directly or indirectly, to control any risk arising from that arrangement or access.
Amendment 895 #
Proposal for a regulation
Article 49 a (new)
Article 49 a (new)
Article 49a Provision of margins among CCPs 1. A CCP shall segregate the collateral received by CCPs with whom it has entered into an interoperability arrangement. 2. Collateral received in the form of cash shall be segregated in accounts with the central bank of issue. 3. Collateral received in the form of financial instruments shall be segregated in accounts with operators of securities settlement systems notified under Directive 98/26/EC. 4. Collateral segregated under paragraphs 1, 2 and 3 shall be available to the receiving CCP only in case of default of the CCP which has provided the collateral in the context of an interoperability arrangement. 5. In case of default of the CCP which has received the collateral in the context of an interoperability arrangement, the collateral segregated under paragraphs 1, 2 and 3 shall be readily returned to the providing CCP. 6. In case of interoperability among more than two CCPs, the interoperable CCPs may make use of a netting arrangement which calculates their net reciprocal obligations.
Amendment 908 #
Proposal for a regulation
Article 55 – paragraph 2
Article 55 – paragraph 2
2. The fines referred to in paragraph 1 shall be dissuasive and proportionate to the nature and seriousness of the breach, the duration of the breach and the economic capacity of the trade repository concerned. The amount of the fine shall not exceed 20 per cent of the annual income or turnover of the trade repository of the preceding business year.
Amendment 927 #
Proposal for a regulation
Article 63 – paragraph 2 – point d a (new)
Article 63 – paragraph 2 – point d a (new)
(d a) the third country is subject of a decision by the Commission stating that the standards to prevent money laundering and terrorist financing meet the Financial Action Task Force requirements and are to the same effect as the requirements set out in Directive 2005/60/EC.
Amendment 928 #
Proposal for a regulation
Article 63 – paragraph 2 – point d b (new)
Article 63 – paragraph 2 – point d b (new)
(d b) the third country has signed an agreement with the home Member State of the authorised CCP which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention and ensures an effective exchange of information in tax matters, including, if any, multilateral tax agreements.
Amendment 940 #
Proposal for a regulation
Article 64 – paragraph 6
Article 64 – paragraph 6
6. A trade repository shall publicly disclose the prices and fees associated with services provided. It shall disclose the prices and fees of single services and functions provided separately, including discounts and rebates and the conditions to benefit from those reductions. It shall allow reporting entities to access specific services separately. The prices and fees charged by a trade repository shall be cost-relatednot be higher than the cost incurred by the trade repository.
Amendment 975 #
Proposal for a regulation
Article 71 a (new)
Article 71 a (new)
Article 71a Staff and resource of ESA (ESMA) By 15 September 2011, ESA (ESMA) shall assess the staffing and resources needs arising from the assumptions of its powers and duties in accordance with this Regulation and submit a report to the European Parliament, the Council and the Commission.