17 Amendments of Burkhard BALZ related to 2016/0365(COD)
Amendment 225 #
Proposal for a regulation
Recital 12
Recital 12
(12) In order to ensure consistency with existing Union legislation in the area of financial services, as well as the greatest possible level of financial stability across the Union, the recovery and resolution regime should apply to all CCPs subject to the prudential requirements laid down in Regulation (EU) No 648/2012, regardless of whether they have a bank licence. The insolvency of a CCP affiliated to a group could rapidly impact the solvency of the whole group and cause further financial instability. While the groups of which a CCP may form part do not need to be subject to the full regime, certain provisions should also apply to parent undertakings, whWhile there may be differences in the risk profile associated with alternative corporate structures, this legislation treats CCPs as independent entities undere application of those provisions at that level would be conducive to more effective recovery and resolution. Authorities should therefore possess targeted means of action with respect to parent undertakings in order to ensure effective recovery and resolution of the CCP and reduce the possibility of contagion to other group entitiesny group or market structure and ensures that a CCP's recovery and resolution plan is free-standing, irrespective of the structure of the CCP's group. This relates in particular to the requirements to hold sufficient financial resources at an entity level to manage a default or non-default situation.
Amendment 240 #
Proposal for a regulation
Recital 29
Recital 29
(29) Where expedient to achieve the objective of orderly recovery and resolution, competent and resolution authorities should identify specific measures in relation to a parent undertaking. Depending on the structure of the group to which the CCP belongs, it can be necessary that the recovery plan of the CCP sets out the conditions under which the provision of possible financial support, guaranteevoluntarily agreed contractual or other binding relations such as parental guarantees or control and profit and loss transfer agreements or other forms of operational support from a parent undertaking or another group-entity to a CCP within the same group would be triggered. Transparency on such arrangements would mitigate risks to the liquidity and solvency of the group entity providing support to a CCP facing financial distress. Any change to such arrangements should be considered to be a material change for the purpose of reviewing the recovery plan.
Amendment 265 #
Proposal for a regulation
Recital 60
Recital 60
(60) Should all other options be practically unavailable or be demonstrably insufficient to safeguard financial stability, government participation in the shape of equity support or temporary public ownership should be possible, in accordance with applicable rules on State aid, including a restructuring of the operations of the CCP, and enable the deployed funds to be recouped from the CCP over timeover time from the clearing participants, which benefit from the financial support. The use of government stabilisation tools is notwithstanding the role of central banks in providing liquidity to the financial system even in times of stress.
Amendment 343 #
Proposal for a regulation
Article 9 – paragraph 7 a (new)
Article 9 – paragraph 7 a (new)
7a. CCPs are required to set up a framework defining which type of losses are covered by joint loss allocation arrangements in case of non-default events. The framework and the recovery plan shall set out in detail where exemptions from the exclusive use of own capital may be applied including all potential first loss arrangements being passed on to the CCPs.
Amendment 355 #
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. CCPs or, in cases where Article 11 applies their parent undertakings, shall submit their recovery plans to the competent authority for approval.
Amendment 366 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 2
Article 11 – paragraph 1 – subparagraph 2
Where the parent undertaking of the group to which a CCP belongs is not an institution or entity referred to in the first subparagraph and where appropriatenecessary in order to meet the criteriaassess all elements of Section A of the Annex, competent authorities may, after consulting the college and in accordance with the procedure laid down in Article 10 of this Regulation, require the parent undertakingCCP to submit a plan for the recovery of the CCP as part of the recovery plan for the group. Thattaking into account all relevant elements related to the group structure. Such a request shall be reasoned and shall be notified in writing to the CCP and its parent undertaking.
Amendment 367 #
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Where the parent undertaking submits the recovery plan in accordance with the first subparagraph of paragraph 1, the provisions on the recovery of the CCP shall constitute a distinct part of that recovery plan and shall comply with the requirements of this Regulation and the CCP shallmay not be required to prepare an individual recovery plan.
Amendment 420 #
Proposal for a regulation
Article 17 – paragraph 7 – point l
Article 17 – paragraph 7 – point l
(l) require the CCP or any group entity directly or indirectly under its control which provides financial support to the CCP to issue liabilities that can be written down and converted or to set aside other resources to increase the capacity for loss absorption, recapitalisation and the replenishment of pre-funded resources;
Amendment 421 #
Proposal for a regulation
Article 17 – paragraph 7 – point m
Article 17 – paragraph 7 – point m
(m) require the CCP, or any group entity directly or indirectly under its control which provides financial support to the CCP to take other steps to enable capital, other liabilities and contracts to be able to absorb losses, to recapitalise the CCP or to replenish pre- funded resources,. Actions considered may includinge in particular to attempting to renegotiate any liability ithe CCP has issued or to revise contractual terms, with a view to ensuring that any decision of the resolution authority to write down, convert or restructure that liability, instrument or contract would be effected under the law of the jurisdiction governing that liability or instrument;
Amendment 424 #
Proposal for a regulation
Article 17 – paragraph 7 – point n
Article 17 – paragraph 7 – point n
Amendment 489 #
Proposal for a regulation
Article 27 – paragraph 5 – subparagraph 1
Article 27 – paragraph 5 – subparagraph 1
The resolution authority shall require the CCP to issue instruments of ownership to be subscribed by all non-defaulting clearing memberparticipants where those non- defaulting clearing memberparticipants have been subject to loss and position allocation tools in deviation from the CCP's operating rules and which have resulted in the non-defaulting clearing member suffering a financial loslosses being passed on to end-user participants. The number of instruments of ownership issued to each affected non- defaulting clearing member shall be proportionate to its loss and shall take account of any outstanding contractual obligations of the clearing members toward the CCP.
Amendment 525 #
Proposal for a regulation
Article 32 – paragraph 1 – subparagraph 2
Article 32 – paragraph 1 – subparagraph 2
Amendment 528 #
Proposal for a regulation
Article 33 – paragraph 7 – subparagraph 1 – point a
Article 33 – paragraph 7 – subparagraph 1 – point a
Amendment 529 #
Proposal for a regulation
Article 35 – paragraph 2
Article 35 – paragraph 2
Amendment 548 #
Proposal for a regulation
Article 45 – paragraph 1 – point d
Article 45 – paragraph 1 – point d
(d) the competentresolution authority requires the resolution authority to provide that financial supportestablishes detailed requirements for the timely recovery of financial resources from the clearing members.
Amendment 556 #
Proposal for a regulation
Article 48 – paragraph 1 – subparagraph 1 – point i
Article 48 – paragraph 1 – subparagraph 1 – point i
(i) the power to require a CCP under resolution or its parent undertaking to issue new instruments of ownership, including preference shares and contingent convertible instruments;
Amendment 557 #
Proposal for a regulation
Article 51 – paragraph 1 – subparagraph 1
Article 51 – paragraph 1 – subparagraph 1
The resolution authority may require a CCP under resolution, or any of its group entitiesservice providers including entities belonging to the same group as the CCP or clearing members, to provide any services or facilities that are necessary to enable a purchaser or bridge CCP to operate effectively the business transferred to it.