38 Amendments of Burkhard BALZ related to 2012/0029(COD)
Amendment 167 #
Proposal for a regulation
Recital 31
Recital 31
(31) In order to avoid settlement risks due to the insolvency of the settlement agent, a CSD should settle, whenever practical and available, the cash leg of the securities transaction through accounts opened with a central bank. If this option is not practical and available, a CSD should be able to settle through accounts opened with a credit institution established under the conditions provided in Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions and subject to a specific authorisation procedure and prudential requirements provided in Title IV of this Regulation. The latter, when acting as settlement agent, should be able to provide to the CSD's participants the services set out in this Regulation, which are covered by the authorisation, and may otherwise provide other services not covered by this Regulation. Alternatively, if the option to settle the cash leg through central bank accounts is not available or practical, a CSD should be able to settle through accounts opened in its own books as special-purpose cash accounts, if prior authorization to provide banking services has been given to the CSD by the competent authority.
Amendment 176 #
Proposal for a regulation
Recital 33
Recital 33
(33) The requirement that the settlement of the cash leg of the securities transaction be carried out by a separate legal entity acting as settlement agent is an important measure to increase the safety and resilience of CSDs. Such a separation between core services of CSDs and banking services ancillary to settlement appears indeed indispensible for eliminating any danger of transmission of the risks from the banking services, such as credit and liquidity risks, to the provision of core services of CSDs. There are no less intrusive measures availabIn order to increase the safety and resilience of securities settlement systems, the risk mitigation measures in the securities settlement systems applicable in particular to credit and liquidity risk should be reinforced. Taking into account the CPSS-IOSCO Principles for eliminating those credit and liquidity risks in order to ensFinancial Market Infrastructures, the envisaged level of safety and resilience of CSDs. However, in order to secure the efficiencies resulting from the provision of both CSDstrengthening of prudential requirements on the measurement, monitoring and bmanking services within the same group of undertakings, the requirement that banking services be carried out by a separate credit institution should not prevent that credit institution from belonging to the same group of undertakings as the CSD. If both CSD and banking serviagement of liquidity risk as well as the introduction of a full collateralization requirement for the credit exposures to each participant seem neces sare provided within the same group of undertakings, in order to increase the safety and efficiency of the services provided, the activities of the credit institution providing banking services should be limited to the provision of banking services ancillary to settlement. Furthermore, a derogation to the obligation to separate banking services ancillary to settlement from core CSD services should be available in the absence of any danger of transmission of credit and liquidity risks from the banking services to the provision of core services of CSDs. In order to ensure a consistent application of the possibility to derogate from the obligation on CSDs noty, irrespective of the legal structure of the settlement model. The stricter prudential requirements should help to foster the resilience and stability of the whole settlement system. Banking type of ancillary services may be carried out by a CSD or by a credit institution designated by the CSD for these specific services, if this designation is authorized by the competent authority. If a CSD designates a credit institution to provide any banking type of ancillary services, the Commissdesignation should be empowered to decide, at the request of a national competent authority, whether any such derogation is permitted in view of the absence of systemic risk incurred bynot prevent that credit institution from belonging to the same group of undertakings as the CSD in order to secure the efficiencies resulting from the provision of both CSD core and banking services bywithin the same legal entity. In any case, the activities of a CSD benefiting from any such derogation and authorised as a credit institutiongroup of undertakings. If both CSD and banking services are provided within the same group of undertakings, in order to increase the safety and efficiency of the services provided, the activities of the credit institution providing banking services should be limited exclusively to the provision of banking services ancillary to settlement.
Amendment 184 #
Proposal for a regulation
Recital 35
Recital 35
(35) The safety of the link arrangements set up between CSDs should be subject to specific requirements to enable the access of their respective participants to other securities settlement systems. The requirement to providefact that CSDs may designate a separate legal entity with the provision of banking type of ancillary services in separate legal entity should not prevent CSDs from receiving such services, in particular when they are participants in a securities settlement system operated by another CSD. It is particularly important that any potential risks resulting from the link arrangements such as credit, liquidity, organisational or any other relevant risks for CSDs are fully mitigated. For interoperability links, it is important that linked securities settlement systems have identical moments of entry of transfer orders into the system, irrevocability of transfer orders and finality of transfers of securities and cash. The same principles should apply to CSDs that use a common settlement information technology (IT) infrastructure.
Amendment 467 #
Proposal for a regulation
Article 37 – paragraph 2
Article 37 – paragraph 2
2. When it is not practical and available to settle in central bank accounts, a CSD may offer to settle the cash payments for all or part of its securities settlement systems through accounts opened with a credit institution or through accounts opened in its own books. If a CSD offers to settle in accounts opened with a credit institution or in accounts opened in its own books, it shall do so in accordance with the provisions of Title IV.
Amendment 469 #
Proposal for a regulation
Article 37 – paragraph 3
Article 37 – paragraph 3
3. Where the CSD offers settlement both in central bank accounts and in accounts opened with a credit institution, or both in central bank accounts and in accounts opened in its own books, its participants shall have the right to choose between these two options.
Amendment 520 #
Proposal for a regulation
Title 4
Title 4
Amendment 522 #
Proposal for a regulation
Article 52 – title
Article 52 – title
Authorisation to provide banking type of ancillary services by designating an authorised credit institution
Amendment 523 #
Proposal for a regulation
Article 52 – paragraph 1
Article 52 – paragraph 1
Amendment 531 #
Proposal for a regulation
Article 52 – paragraph 2
Article 52 – paragraph 2
Amendment 556 #
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 anby designating one authorised credit institution as provided in Title II of Directive 2006/48/EC, unless shall obtain authorisation from the competent authority referred to in Article 53(1) ofor this Regulationpurpose, unless the competent authority 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 569 #
Proposal for a regulation
Article 52 – paragraph 4
Article 52 – paragraph 4
4. The authorisation referred to in paragraph 31 shall cover the ancillary services set out in Section C of the Annex that the designated credit institution or a CSD that has been granted a derogation under paragraph 2 of this Article may want to provide for its participathe CSD’s clients.
Amendment 573 #
Proposal for a regulation
Article 52 – paragraph 5
Article 52 – paragraph 5
5. Whenever the CSD and the designated credit institution belong to a group of undertakings ultimately controlled by the same parent undertaking, the authorisation as provided in Title II of Directive 2006/48/EC of such designated credit institution shall be limited exclusively to the provision of the banking type of ancillary services that it is authorised to provide in accordance with paragraph 3 of this Article. The same requirement applies in respect of a CSD that has been granted a derogation under paragraphs 1 and 2 of this Article.
Amendment 585 #
Proposal for a regulation
Article 52 – paragraph 6 – subparagraph 1
Article 52 – paragraph 6 – subparagraph 1
4. The CSD and the designated credit institutions shall comply at all times with the conditions necessary for authorisation under this Regulation.
Amendment 586 #
Proposal for a regulation
Article 52 a (new)
Article 52 a (new)
Amendment 590 #
Proposal for a regulation
Article 53 – paragraph 1
Article 53 – paragraph 1
1. The CSD shall submit its application for authorisation to designate a credit institution, as required underin accordance with Article 52, to the competent authority of the Member State where it is established.
Amendment 592 #
Proposal for a regulation
Article 53 – paragraph 4 – point b
Article 53 – paragraph 4 – point b
(b) The competent authority referred to in Article 58(1) on the ability of the designated credit institutions to comply with the prudential requirements under Article 57.;
Amendment 598 #
Proposal for a regulation
Article 55 – paragraph 1 – introductory part
Article 55 – paragraph 1 – introductory part
1. The competent authority of the Member State where the CSD is established shall withdraw the authorisation under Article 52 in any of the following circumstances:
Amendment 599 #
Proposal for a regulation
Article 55 – paragraph 1 – point c
Article 55 – paragraph 1 – point c
(c) where the CSD andor the designated credit institution are no longer in compliance with the conditions under which authorisation was granted and have not taken the remedial actions requested by the competent authority within a set time frame;
Amendment 600 #
Proposal for a regulation
Article 55 – paragraph 1 – point d
Article 55 – paragraph 1 – point d
(d) where the CSD andor the designated credit institution have seriously and systematically infringed the requirements set out in this Regulation.
Amendment 604 #
Proposal for a regulation
Article 55 – paragraph 3
Article 55 – paragraph 3
3. ESMA, any relevant authority under point (a) of Article 11(1) and any authority referred to in Article 58(1) may, at any time, request that the competent authority of the Member State where the CSD is established examine whether the CSD andor the designated credit institution are still in compliance with the conditions under which the authorisation is granted.
Amendment 605 #
Proposal for a regulation
Article 56 – paragraph 1
Article 56 – paragraph 1
1. Decisions taken by competent authorities under Articles 52, 54 and 55 or notifications received under Article 52a (3) or (4) shall be notified to ESMA.
Amendment 606 #
Proposal for a regulation
Article 56 – paragraph 2 – point a
Article 56 – paragraph 2 – point a
(a) the name of each CSD which was subject to a decision under Articles 52, 54 and 55 or which filed a notification under Article 52a (3);
Amendment 607 #
Proposal for a regulation
Article 56 – paragraph 2 – point c
Article 56 – paragraph 2 – point c
(c) the list of banking type of ancillary services that a designated credit institution is authorised to provide for CSD’s participaclients or that a CSD with a banking licence provides for its clients.
Amendment 608 #
Proposal for a regulation
Article 56 – paragraph 3
Article 56 – paragraph 3
3. The competent authorities shall notify to ESMA those CSDs that provide banking type of ancillary services with a banking licence and those credit institutions that provide banking type of ancillary services according to the requirements of national law 90 days from the entry into force of this Regulation.
Amendment 609 #
Proposal for a regulation
Article 57 – title
Article 57 – title
Prudential requirements applicable to credit institutions designated to provide banking type of ancillary services and CSDs providing banking type of ancillary services.
Amendment 618 #
Proposal for a regulation
Article 57 – paragraph 2
Article 57 – paragraph 2
2. A credit institution designatCSD authorised to provide banking type of ancillary services in accordance with Article 52a and other credit institutions authorised in accordance with Article 52 shall comply with any present or future legislation applicable to credit institutions.
Amendment 622 #
Proposal for a regulation
Article 57 – paragraph 3 – introductory part
Article 57 – paragraph 3 – introductory part
3. A credit institution designated to provide banking type of ancillary services and a CSD authorised as a credit institution that has notified its competent authority according to Article 52a (3) shall comply with the following specific prudential requirements for the credit risks related to these services in respect of each securities settlement system:
Amendment 625 #
Proposal for a regulation
Article 57 – paragraph 4 – introductory part
Article 57 – paragraph 4 – introductory part
4. A credit institution designated to provide banking type of ancillary services and a CSD authorised as a credit institution that has notified its competent authority according to Article 52a (3) shall comply with the following specific prudential requirements for the liquidity risks related to these services in respect of each securities settlement system:
Amendment 628 #
Proposal for a regulation
Article 57 – paragraph 5 – subparagraph 1 – introductory part
Article 57 – paragraph 5 – subparagraph 1 – introductory part
5. EBA, in consultlose cooperation with ESMA and the members of the ESCB, shall develop draft regulatory technical standards to specify the following:
Amendment 629 #
Proposal for a regulation
Article 58 – title
Article 58 – title
Supervision of credit institutions designated to provide banking type of ancillary services and CSDs authorised as a credit institution that have notified their competent authority according to Article 52a (3)
Amendment 631 #
Proposal for a regulation
Article 58 – paragraph 1 a (new)
Article 58 – paragraph 1 a (new)
1 a. If a CSD authorised as a credit institution that has notified its competent authority according to Article 52a (3) is not in compliance with Article 57 (3) and (4) of this Regulation, the competent authority may notwithstanding any measures under the Directive 2006/48/EC withdraw the authorisation of the CSD in accordance with Article 18 of this Regulation.
Amendment 633 #
Proposal for a regulation
Article 58 – paragraph 4
Article 58 – paragraph 4
4. In order to ensure consistent, efficient and effective supervision within the Union of credit institutions designated to provide banking type of ancillary services, EBA, in consultlose cooperation with ESMA and the members of the ESCB, may issue guidelines addressed to competent authorities in accordance with Article 16 of Regulation (EU) No 1093/2010.
Amendment 671 #
Proposal for a regulation
Annex 1 – section C – point 1 – point a
Annex 1 – section C – point 1 – point a
(a) Providing cash accoAcceptance of deposits and other repayable funtds;
Amendment 672 #
Proposal for a regulation
Annex 1 – section C – point 1 – point b
Annex 1 – section C – point 1 – point b
Amendment 674 #
Proposal for a regulation
Annex 1 – section C – point 1 – point c
Annex 1 – section C – point 1 – point c
Amendment 677 #
Proposal for a regulation
Annex 1 – section C – point 1 – point d a (new)
Annex 1 – section C – point 1 – point d a (new)
(d a) Lending cash for intended reimbursement no later than the following business day;
Amendment 681 #
Proposal for a regulation
Annex 1 – section C – point 2 – point a a (new)
Annex 1 – section C – point 2 – point a a (new)
(a a) Processing of cash transactions, including the cash leg of DVP transactions and transactions related to foreign exchange instructions from participants;
Amendment 683 #
Proposal for a regulation
Annex 1 – section C – point 2 – point c a (new)
Annex 1 – section C – point 2 – point c a (new)
(c a) Trading for own account or for account of participants, in particular treasury activities related to the management of the participants’ long balances;