Activities of Kay SWINBURNE related to 2014/0017(COD)
Shadow reports (1)
REPORT on the proposal for a regulation of the European Parliament and of the Council on reporting and transparency of securities financing transactions PDF (755 KB) DOC (180 KB)
Amendments (40)
Amendment 96 #
Proposal for a regulation
Recital 2 a (new)
Recital 2 a (new)
(2a) Subsequently on 14 October 2014 the FSB published a regulatory framework for haircuts on collateral posted in non- centrally cleared SFTs. In the absence of clearing, such operations can cause risks if they are not properly collateralised. While enhancing transparency on the re- use of collateral is a first step towards facilitating counterparties' capacity to analyse and prevent the build-up of risks, the FSB also considered it necessary to propose further reforms in the area of haircuts on assets received as collateral for non-centrally cleared SFTs with non- banks. These proposals are intended to prevent excessive leverage and mitigate concentration and default risk. The FSB is due to complete its work on those collateral haircuts by 2016, with the development of a final set of recommendations on haircuts for collateral delivered in non-centrally cleared non-bank-to-non-bank SFTs. It is therefore appropriate to wait for these proposals to be agreed upon and be subjected to a full impact assessment by ESMA and the EBA to assess the most appropriate way to introduce these internationally agreed provisions into the EU. A coherent approach for transactions involving financial and non-financial counterparties as well as those involving only non-financial counterparties should be considered so as to avoid market distorting behaviour.
Amendment 100 #
Proposal for a regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) In order to ensure the effective implementation of the reporting of securities financing transactions a phased implementation of the requirements by counterparty is necessary. This should consider the effective ability of the counterparty to comply with the reporting obligations and so start with more advanced counterparties such as broker dealers, followed by different categories for different sizes of asset managers and finally non-financial counterparties.
Amendment 101 #
Proposal for a regulation
Recital 8 b (new)
Recital 8 b (new)
(8b) In order to reduce the administrative burden faced by both financial and non- financial counterparties, the ability to delegate the reporting requirements should be reinforced in order to make clear that any delegation of the requirement to report a transaction would also cause all legal liability for reporting the transaction to pass to the delegate.
Amendment 102 #
Proposal for a regulation
Recital 8 c (new)
Recital 8 c (new)
(8c) In the case of certain activities such as securities lending and margin lending, detailed position reporting may be a better indication to supervisors of build-up of systemic risk and it should allow for simpler aggregation of data.
Amendment 104 #
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) In addition, SFTs are also used by some other financial and non-financial counterparties. Information in a high level, aggregate form should be given to shareholders about these transactions as part of disclosures as provided for in Directive 2014/95/EU of the European Parliament and of the Council1a . ________________ 1a Directive2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non- financial and diversity information by certain large undertakings and groups (OJ L 330, 15.11.2014, p. 1)
Amendment 106 #
Proposal for a regulation
Recital 15 a (new)
Recital 15 a (new)
(15a) The existing guidelines for competent authorities and UCITs management companies (ESMA/2012/832) produced by ESMA apply an optional framework to UCITs management companies regarding reporting obligations. In order to increase the effectiveness of this regime, these provisions have been incorporated as draft regulatory technical standards. In order to reduce administrative burden for those UCITs management companies and AIF that have already adopted these guidelines, it is appropriate not to require the re-submission of any prospectus that already complies with the existing guidelines.
Amendment 115 #
Proposal for a regulation
Recital 22
Recital 22
(22) The power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amending the list of entities that should be excluded from the scope of this Regulation in order to avoid limiting their power to perform their tasks of common interest; specific details concerning definitions; the type of fees, the matters for which fees are due, the amount of the fees and the manner in which they are to be paid by trade repositories, and of the amendment of the Annex in order to update information on SFT as well as other financing structures and information to investors. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure a simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and to the Council.
Amendment 117 #
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
This Regulation lays down rules on the transparency of securities financing transactions (SFTs), other financing structures and rehypothecation and reuse.
Amendment 121 #
Proposal for a regulation
Article 2 – paragraph 1 – point d – point 2
Article 2 – paragraph 1 – point d – point 2
Amendment 122 #
Proposal for a regulation
Article 2 – paragraph 2 – introductory part
Article 2 – paragraph 2 – introductory part
2. TArticles 4 and 15 of this Regulation shall not apply to:
Amendment 128 #
Proposal for a regulation
Article 2 – paragraph 2 a (new)
Article 2 – paragraph 2 a (new)
2a. Article 4 of this Regulation shall not apply to transactions to which the bodies listed in points (a) and (b) of paragraph 2 are counterparty.
Amendment 129 #
Proposal for a regulation
Article 2 – paragraph 3
Article 2 – paragraph 3
Amendment 134 #
Proposal for a regulation
Article 3 – paragraph 1 – point 6 – indent 3
Article 3 – paragraph 1 – point 6 – indent 3
Amendment 137 #
Proposal for a regulation
Article 3 – paragraph 1 – point 6 – indent 3 a (new)
Article 3 – paragraph 1 – point 6 – indent 3 a (new)
- a margin lending transaction as defined in point (3) of Article 272 of Regulation (EU) No 575/2013. For the purposes of this Regulation, margin lending transactions are not limited to transactions governed by agreements between institutions as defined in Regulation (EU) No 575/2013 and their counterparties;
Amendment 139 #
Proposal for a regulation
Article 3 – paragraph 1 – point 7
Article 3 – paragraph 1 – point 7
7. ‘rehypothecationuse’ means the use by a receiving counterparty of financial instruments received as collateral in its own name and for its own account or for the account of another counterpartydelivered in one transaction as collateral;
Amendment 140 #
Proposal for a regulation
Article 3 – paragraph 1 – point 7 a (new)
Article 3 – paragraph 1 – point 7 a (new)
7a. Title Transfer Collateral Arrangement (TTCA) mean the transfer of collateral as defined in point (b) of Article 2(1) of Directive 2002/47/EC.
Amendment 142 #
Proposal for a regulation
Article 3 – paragraph 1 – point 9
Article 3 – paragraph 1 – point 9
Amendment 145 #
Proposal for a regulation
Article 3 – paragraph 2
Article 3 – paragraph 2
Amendment 147 #
Proposal for a regulation
Article 4 – paragraph 1 – subparagraph 1
Article 4 – paragraph 1 – subparagraph 1
1. Counterparties to SFTs shall report the details of such transactions or positions to a trade repository registered in accordance with Article 5 or recognised in accordance with Article 19. The details shall be reported no later than the third working day following the conclusion, modification or termination of the transaction. but as soon as is practically possible.
Amendment 150 #
Proposal for a regulation
Article 4 – paragraph 1 – subparagraph 2 – point a
Article 4 – paragraph 1 – subparagraph 2 – point a
Amendment 152 #
Proposal for a regulation
Article 4 – paragraph 1 – subparagraph 3
Article 4 – paragraph 1 – subparagraph 3
A counterparty which is subject to the reporting obligation may delegate the reporting of the details of SFTs. All legal liability for reporting the transaction shall be passed to the delegated entity.
Amendment 155 #
Proposal for a regulation
Article 4 – paragraph 3
Article 4 – paragraph 3
Amendment 160 #
Proposal for a regulation
Article 4 – paragraph 7 – subparagraph 1 – point b a (new)
Article 4 – paragraph 7 – subparagraph 1 – point b a (new)
(b a) the date or dates from which the reporting obligation takes place using a phased implementation by types of counterparty;
Amendment 161 #
Proposal for a regulation
Article 4 – paragraph 7 – subparagraph 1 – point b b (new)
Article 4 – paragraph 7 – subparagraph 1 – point b b (new)
(b b) for which activities reporting of positions instead of transactions is appropriate.
Amendment 162 #
Proposal for a regulation
Article 4 – paragraph 8 – subparagraph 1
Article 4 – paragraph 8 – subparagraph 1
8. In order to ensure uniform conditions of application of paragraph 1, ESMA shall, in close cooperation with the ESCB and taking into account its needs, develop draft implementing technical standards specifying the format and frequency of the reports referred to in paragraphs 1 and 3 for the different types of SFTs; The format shall include global legal entity identifiers (LEIs) as required under Article 26 of Regulation No 648/2012, international securities identification numbers (ISINs), and a Unique Trade Identifier (UTI) for each transaction, where applicable.
Amendment 165 #
Proposal for a regulation
Article 5 – paragraph 4
Article 5 – paragraph 4
4. A trade repository shall submit an application for registration to ESMA, or in the case of a trade repository already registered under Regulation No 648/2012 an application of extension of services.
Amendment 172 #
Proposal for a regulation
Article 12 – paragraph 3 – subparagraph 1 – point b
Article 12 – paragraph 3 – subparagraph 1 – point b
(b) operational standards required in order to aggregate and compare data across repositories systematically;
Amendment 176 #
Proposal for a regulation
Article 13 – paragraph 1 – introductory part
Article 13 – paragraph 1 – introductory part
1. Management companies of UCITS, UCITS investment companies and AIFMs shall inform their investors on the use they make of SFTs as well as of other financing structures:
Amendment 181 #
Proposal for a regulation
Article 13 – paragraph 1 a (new)
Article 13 – paragraph 1 a (new)
1a. Financial and non-financial institutions referred to in Article 19a of Directive 2013/34/EU shall include in the report referred to in Directive 2014/95/EU a description of their use of SFTs and their reuse of collateral.
Amendment 186 #
Proposal for a regulation
Article 13 – paragraph 2
Article 13 – paragraph 2
2. The information on SFT as well as on other financing structures shall comprise at least the data provided forshall take account of existing requirements under Directive 2009/65/EC and Directive 2011/61/EC and comprise, where appropriate, the data referred to in Section A of the Annex.
Amendment 187 #
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. The Commission shall be empowered to adopt delegated acts in accordance with Article 27 to amend Section A of the Annex in order to reflect the evolution of market pracESMA shall develop draft regulatory technical standards specifying the details of Section A of the Annex as well as the circumstances under which they are applicable, taking into account administrative burden. ESMA shall submit those draft regulatory technical standards to the Commission by ...* Power is delegated to the Commission to adopt the regulatory technical standards referred to the first subparagraph , in accordance with articles and technological developments10 to 14 of Regulation (EU) No 1095/2010 __________________ * OJ: please insert a date: 12 months from the date of entry into force of this Regulation.
Amendment 191 #
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. The prospectus and the disclosure to investors referred to in paragraph 1 shall comprise at leasttake account of the existing requirements under Directive 2009/65/EC and Directive 2011/61/EU and comprise, where appropriate, the data provided for in Section B of the Annex.
Amendment 192 #
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The Commission shall be empowered to adopt delegated acts in accordance with Article 27 amending Section B of the Annex in order to reflect the evolution of market pracESMA shall develop draft regulatory technical standards specifying the details of Section B of the Annex as well as the circumstances under which they are applicable, taking into account administrative burden. ESMA shall submit those draft regulatory technical standards to the Commission by ... *. Power is delegated to the Commission to adopt the regulatory standards referred to in the first subparagraph, in accordance with Articles and technological developments. 10 to 14 of Regulation (EU) No 1095/2010. _____________ * OJ: please insert a date: 12 months from the date of entry into force of this Regulation.
Amendment 204 #
Proposal for a regulation
Article 15 – paragraph 1 a (new)
Article 15 – paragraph 1 a (new)
1a. The conditions set out in paragraphs 1 and 2 shall not apply where the providing counterparty is providing collateral under a TTCA.
Amendment 215 #
Proposal for a regulation
Article 17 – paragraph 2 a (new)
Article 17 – paragraph 2 a (new)
Amendment 243 #
Proposal for a regulation
Article 26 – paragraph 1 a (new)
Article 26 – paragraph 1 a (new)
Within eighteen months of the entry into force of this regulation, ESMA and the EBA shall provide a report to the Commission on the final conclusions of the Financial Stability Board's work on a regulatory framework for haircuts on collateral posted in non-centrally cleared SFTs. In full consideration of this report, the Commission shall submit a full impact assessment of the FSB proposals and consider whether new legislative proposals to implement its recommendations are necessary.
Amendment 244 #
Proposal for a regulation
Article 26 – paragraph 1 b (new)
Article 26 – paragraph 1 b (new)
On an annual basis, the Commission shall prepare a report on the application of Article 11 and fully account for all fees that have been charged to trade repositories to ensure that they are solely used to cover the necessary expenditure of this regulation and that of Regulation (EU) No 648/2012.
Amendment 248 #
Proposal for a regulation
Article 28 – paragraph 2 – point a
Article 28 – paragraph 2 – point a
(a) Article 4(1), which shall apply 18 months after the date of entry into force via the phased-in approach developed in the delegated act adopted under Article 4(7); and
Amendment 249 #
Proposal for a regulation
Article 28 – paragraph 2 – point a
Article 28 – paragraph 2 – point a
(a) Article 4(1), which shall apply 18 months after the date of entry into forceadoption by the Commission of the regulatory technical standards referred to in Article 4 via the phased in approach developed in the delegated act adopted under Article 4(7); and
Amendment 250 #
Proposal for a regulation
Article 28 – paragraph 2 – point b
Article 28 – paragraph 2 – point b
(b) Articles 13 and 14, which shall apply 618 months after the date of entry into forceadoption by the Commission of the draft regulatory technical standards referred to in those articles.