BETA


2017/2860(DEA) Indirect clearing arrangements

Progress: Procedure completed - delegated act enters into force

RoleCommitteeRapporteurShadows
Lead ECON
Lead committee dossier:
Legal Basis:
RoP 0111-p6

Events

2017/10/25
   EP - Decision by Parliament
Details

The European Parliament decided to raise no objections to the Commission delegated regulation of 22 September 2017 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements

As a reminder, Regulation (EU) No 600/2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (MiFIR) requires the operators of regulated markets to ensure that all transactions in derivatives that are concluded on the regulated markets operated by them are cleared by a central counterparty (CCP), i.e. a clearing obligation for exchange traded derivatives (ETDs).

EMIR mandates the European Securities and Markets Authority (ESMA) to develop draft regulatory technical standards (RTS) that specify the types of indirect clearing arrangements that can be used to fulfil the clearing obligation set out in Article 4 of EMIR for over-the counter (OTC) derivatives pertaining to a class that has been declared subject to that obligation, i.e. a clearing obligation for OTC derivatives.

The current delegated act specifies the types of indirect clearing arrangements which can be used for ETDs.

Parliament recalled that the Commission only endorsed the draft regulatory technical standard (RTS) 16 months after having received it from the European Securities and Markets Authority (ESMA) on 26 May 2016.

Over this period, the Commission did not formally consult ESMA over this period concerning its amendments to this draft RTS, nor did it inform the co-legislators or industry of the reasons for delay.

Members considered it unacceptable that the Commission overran the deadline for adopting the draft RTS by more than a year without informing the co-legislators.

Since the RTS adopted is not ‘the same’ as the draft RTS submitted by ESMA, Parliament considered that it has three months to object to the RTS due to the amendments made by the Commission.

The delegated regulation should apply from 3 January 2018, the application date of Directive 2014/65/EU (‘MiFID II’) and Regulation (EU) No 600/2014 (‘MiFIR’). However, the full use of the three-month scrutiny period available to Parliament would no longer allow sufficient time for industry to implement the changes.

Accordingly, Members stated that swift publication of the delegated regulation in the Official Journal would allow timely implementation and legal certainty concerning the provisions applicable to indirect clearing.

Documents
2017/10/20
   EP - Recommendation for early non-objection of delegated act
Documents
2017/10/17
   CSL - Delegated act not objected by Council
2017/10/04
   EP - Committee referral announced in Parliament
2017/09/22
   EC - Non-legislative basic document
Documents
2017/09/22
   EC - Non-legislative basic document published
Documents
2017/09/22
   EP/CSL - Initial period for examining delegated act 3 month(s)

Documents

History

(these mark the time of scraping, not the official date of the change)

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    • date: 2017-10-20T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2017-0574&language=EN title: B8-0574/2017 type: Recommendation for early non-objection of delegated act body: EP
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    • date: 2017-09-22T00:00:00 type: Non-legislative basic document published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/actes_delegues/2017/06268/COM_ADL(2017)06268_EN.pdf title: C(2017)06268
    • date: 2017-09-22T00:00:00 type: Initial period for examining delegated act 3 month(s) body: EP/CSL
    • date: 2017-10-04T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
    • date: 2017-10-17T00:00:00 type: Delegated act not objected by Council body: CSL
    • date: 2017-10-25T00:00:00 type: Decision by Parliament, 1st reading/single reading body: EP docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2017-0406 title: T8-0406/2017 summary: The European Parliament decided to raise no objections to the Commission delegated regulation of 22 September 2017 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements As a reminder, Regulation (EU) No 600/2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (MiFIR) requires the operators of regulated markets to ensure that all transactions in derivatives that are concluded on the regulated markets operated by them are cleared by a central counterparty (CCP), i.e. a clearing obligation for exchange traded derivatives (ETDs). EMIR mandates the European Securities and Markets Authority (ESMA) to develop draft regulatory technical standards (RTS) that specify the types of indirect clearing arrangements that can be used to fulfil the clearing obligation set out in Article 4 of EMIR for over-the counter (OTC) derivatives pertaining to a class that has been declared subject to that obligation, i.e. a clearing obligation for OTC derivatives. The current delegated act specifies the types of indirect clearing arrangements which can be used for ETDs. Parliament recalled that the Commission only endorsed the draft regulatory technical standard (RTS) 16 months after having received it from the European Securities and Markets Authority (ESMA) on 26 May 2016. Over this period, the Commission did not formally consult ESMA over this period concerning its amendments to this draft RTS, nor did it inform the co-legislators or industry of the reasons for delay. Members considered it unacceptable that the Commission overran the deadline for adopting the draft RTS by more than a year without informing the co-legislators. Since the RTS adopted is not ‘the same’ as the draft RTS submitted by ESMA, Parliament considered that it has three months to object to the RTS due to the amendments made by the Commission. The delegated regulation should apply from 3 January 2018, the application date of Directive 2014/65/EU (‘MiFID II’) and Regulation (EU) No 600/2014 (‘MiFIR’). However, the full use of the three-month scrutiny period available to Parliament would no longer allow sufficient time for industry to implement the changes. Accordingly, Members stated that swift publication of the delegated regulation in the Official Journal would allow timely implementation and legal certainty concerning the provisions applicable to indirect clearing.
    links
    other
      procedure/dossier_of_the_committee
      Old
      ECON/8/11082
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      • ECON/8/11082
      procedure/legal_basis/0
      Rules of Procedure EP 0111-p6
      procedure/legal_basis/0
      Rules of Procedure EP 0105-p6
      procedure/subject
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      • 2.50.03 Securities and financial markets, stock exchange, CIUTS, investments
      • 2.50.08 Financial services, financial reporting and auditing
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      Old
      Rules of Procedure of the European Parliament EP 010-p6
      New
      Rules of Procedure EP 0105-p6
      activities/4/docs/0/text
      • The European Parliament decided to raise no objections to the Commission delegated regulation of 22 September 2017 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards on indirect clearing arrangements 

        As a reminder, Regulation (EU) No 600/2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (MiFIR) requires the operators of regulated markets to ensure that all transactions in derivatives that are concluded on the regulated markets operated by them are cleared by a central counterparty (CCP), i.e. a clearing obligation for exchange traded derivatives (ETDs).

        EMIR mandates the European Securities and Markets Authority (ESMA) to develop draft regulatory technical standards (RTS) that specify the types of indirect clearing arrangements that can be used to fulfil the clearing obligation set out in Article 4 of EMIR for over-the counter (OTC) derivatives pertaining to a class that has been declared subject to that obligation, i.e. a clearing obligation for OTC derivatives.

        The current delegated act specifies the types of indirect clearing arrangements which can be used for ETDs.

        Parliament recalled that the Commission only endorsed the draft regulatory technical standard (RTS) 16 months after having received it from the European Securities and Markets Authority (ESMA) on 26 May 2016.

        Over this period, the Commission did not formally consult ESMA over this period concerning its amendments to this draft RTS, nor did it inform the co-legislators or industry of the reasons for delay.

        Members considered it unacceptable that the Commission overran the deadline for adopting the draft RTS by more than a year without informing the co-legislators.

        Since the RTS adopted is not ‘the same’ as the draft RTS submitted by ESMA, Parliament considered that it has three months to object to the RTS due to the amendments made by the Commission.

        The delegated regulation should apply from 3 January 2018, the application date of Directive 2014/65/EU (‘MiFID II’) and Regulation (EU) No 600/2014 (‘MiFIR’). However, the full use of the three-month scrutiny period available to Parliament would no longer allow sufficient time for industry to implement the changes.

        Accordingly, Members stated that swift publication of the delegated regulation in the Official Journal would allow timely implementation and legal certainty concerning the provisions applicable to indirect clearing.

      activities
      • date: 2017-09-22T00:00:00 body: EP/CSL type: Initial period for examining delegated act 3 month(s)
      • date: 2017-09-22T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/actes_delegues/2017/06268/COM_ADL(2017)06268_EN.pdf type: Non-legislative basic document published title: C(2017)06268 body: EC type: Non-legislative basic document published commission:
      • date: 2017-10-04T00:00:00 body: EP type: Committee referral announced in Parliament, 1st reading/single reading committees: body: EP responsible: True committee_full: Economic and Monetary Affairs committee: ECON
      • date: 2017-10-17T00:00:00 body: EP/CSL type: Delegated act not objected by Council
      • date: 2017-10-25T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P8-TA-2017-0406 type: Decision by Parliament, 1st reading/single reading title: T8-0406/2017 body: EP type: Decision by Parliament, 1st reading/single reading
      committees
      • body: EP responsible: True committee_full: Economic and Monetary Affairs committee: ECON
      links
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        ECON/8/11082
        reference
        2017/2860(DEA)
        title
        Indirect clearing arrangements
        legal_basis
        Rules of Procedure of the European Parliament EP 010-p6
        stage_reached
        Procedure completed - delegated act enters into force
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        Supplementing
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