BETA


2018/3004(DEA) Date at which the clearing obligation takes effect for certain types of contracts

Progress: Awaiting Council decision on delegated act

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

Events

2019/02/13
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament declared it has no objections to the Commission delegated regulation of 19 December 2018 amending Commission Delegated Regulation (EU) 2015/2205, Commission Delegated Regulation (EU) 2016/592 and Commission Delegated Regulation (EU) 2016/1178 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards the date at which the clearing obligation takes effect for certain types of contracts.

As of the withdrawal date, counterparties established in the United Kingdom will no longer be able to perform certain so-called “life-cycle events” (such as novations, unwinding by entering into an offsetting transaction, compression with new replacement contracts, etc.) in the EU under the current passport regime.

The performance of those “life-cycle events” on certain cross-border (UK-EU27) contracts may require authorisation in Member States, in line with national third country regimes that still prevail today under Regulation (EU) No 600/2014. These counterparties established in the United Kingdom could then face up to 27 different national third-country regimes.

The delegated act contains important rules related to transactions concluded between a counterparty established in the United Kingdom and a counterparty established in the EU-27 and is part of the package of contingency measures in the event of a no-deal Brexit.

Parliament agreed on the importance for competent authorities and financial markets of exempting certain transactions resulting from a novation, for a limited period of 12 months, if the counterparty established in the UK is changed to a counterparty within the EU-27.

Parliament considered that the RTS adopted are not the same as the draft RTS submitted by the European Supervisory Authorities (ESAs) owing to the Commission’s changes that were introduced in this draft. It considered that it has three months (‘the scrutiny period’) to object to the RTS.

Parliament urged the Commission to indicate the one-month scrutiny period only in cases where the Commission has adopted the ESAs’ drafts without changes, i.e. where the draft and the adopted RTS are the same.

Documents
2019/01/31
   EP - Recommendation for early non-objection of delegated act
Documents
2019/01/29
   EP - Delegated act not objected by Parliament
2019/01/16
   EP - Committee referral announced in Parliament, 1st reading/single reading
2018/12/19
   EC - Non-legislative basic document
Documents
2018/12/19
   EC - Non-legislative basic document published
Documents
2018/12/19
   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)

committees/0/date
    committees
    • type: Responsible Committee body: EP associated: False committee_full: Economic and Monetary Affairs committee: ECON date:
    docs
    • date: 2018-12-19T00:00:00 docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/actes_delegues/2018/09122/COM_ADL(2018)09122_EN.pdf title: C(2018)09122 type: Non-legislative basic document body: EC
    • date: 2019-01-31T00:00:00 docs: url: http://www.europarl.europa.eu/sides/getDoc.do?type=MOTION&reference=B8-2019-0090&language=EN title: B8-0090/2019 type: Recommendation for early non-objection of delegated act body: EP
    events
    • date: 2018-12-19T00:00:00 type: Non-legislative basic document published body: EC docs: url: http://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/actes_delegues/2018/09122/COM_ADL(2018)09122_EN.pdf title: C(2018)09122
    • date: 2018-12-19T00:00:00 type: Initial period for examining delegated act 3 month(s) body: EP/CSL
    • date: 2019-01-16T00:00:00 type: Committee referral announced in Parliament, 1st reading/single reading body: EP
    • date: 2019-01-29T00:00:00 type: Delegated act not objected by Parliament body: EP
    • date: 2019-02-13T00:00:00 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-2019-0101 title: T8-0101/2019 summary: The European Parliament declared it has no objections to the Commission delegated regulation of 19 December 2018 amending Commission Delegated Regulation (EU) 2015/2205, Commission Delegated Regulation (EU) 2016/592 and Commission Delegated Regulation (EU) 2016/1178 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council as regards the date at which the clearing obligation takes effect for certain types of contracts. As of the withdrawal date, counterparties established in the United Kingdom will no longer be able to perform certain so-called “life-cycle events” (such as novations, unwinding by entering into an offsetting transaction, compression with new replacement contracts, etc.) in the EU under the current passport regime. The performance of those “life-cycle events” on certain cross-border (UK-EU27) contracts may require authorisation in Member States, in line with national third country regimes that still prevail today under Regulation (EU) No 600/2014. These counterparties established in the United Kingdom could then face up to 27 different national third-country regimes. The delegated act contains important rules related to transactions concluded between a counterparty established in the United Kingdom and a counterparty established in the EU-27 and is part of the package of contingency measures in the event of a no-deal Brexit. Parliament agreed on the importance for competent authorities and financial markets of exempting certain transactions resulting from a novation, for a limited period of 12 months, if the counterparty established in the UK is changed to a counterparty within the EU-27. Parliament considered that the RTS adopted are not the same as the draft RTS submitted by the European Supervisory Authorities (ESAs) owing to the Commission’s changes that were introduced in this draft. It considered that it has three months (‘the scrutiny period’) to object to the RTS. Parliament urged the Commission to indicate the one-month scrutiny period only in cases where the Commission has adopted the ESAs’ drafts without changes, i.e. where the draft and the adopted RTS are the same.
    procedure
    reference
    2018/3004(DEA)
    title
    Date at which the clearing obligation takes effect for certain types of contracts
    subject
    type
    DEA - Delegated acts procedure
    subtype
    Examination of delegated act
    legal_basis
    Rules of Procedure EP 0111-p6
    stage_reached
    Awaiting Council decision on delegated act
    dossier_of_the_committee
    ECON/8/15261