Changes from plenary report to adopted text

Removed(e) the relevant resolution authorities designated pursuant to Article 3(1) of Regulation (EU) 2021/23.

RemovedWhere a meeting of the CCP Supervisory Committee is held pursuant to the first subparagraph, the Chair shall inform EBA, EIOPA, the ESRB and the Commission thereof who shall also be invited to participate to that meeting upon their request.

RemovedWhere a meeting is held following an emergency situation as specified in paragraph 1, point (c), the Chair shall always invite the relevant central banks of issue to participate in that meeting.

Removed5. ESMA may, by simple request, require authorised CCPs, their clearing members and clients, connected financial market infrastructures and related third parties to whom those CCPs have outsourced operational functions or activities to provide all necessary information to enable ESMA to carry out its coordination function under this Article.

Removed▌

Removed(20) Article 24a is amended as follows:

Removed(-a) in paragraph 1, the following point is inserted:

Removed‘(e) the competent authorities responsible for the supervision of the three clearing members with the largest contributions, calculated on an aggregate basis over a one-year period, to the default fund, referred to in Article 42 of this Regulation, of each of the CCPs authorised in accordance with Article 14 or recognised in accordance with Article 25 of this Regulation, including, where relevant, the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/2013, who shall be non-voting.’

Removed(a) in paragraph 2, point (d) (ii) is replaced by the following:

Removed‘(ii) where the CCP Supervisory Committee convenes in relation to CCPs authorised in accordance with Article 14, in the context of discussions pertaining to paragraph 7 of this Article, the central banks of issue of the Union currencies of the financial instruments cleared by authorised CCPs that have requested membership of the CCP Supervisory Committee, who shall be non-voting.’;

Removed(b) paragraph 3 is replaced by the following;

Removed‘3. The Chair may invite as observers to the meetings of the CCP Supervisory Committee, where appropriate ▌, members of the colleges referred to in Article 18, representatives from the relevant authorities of clients where they are known and from the relevant Union institutions and bodies.’;

Removed(c) paragraph 7 is amended as follows:

Removed(i) the introductory wording is replaced by the following:

Removed‘In relation to CCPs authorised or applying for authorisation in accordance with Article 14, the CCP Supervisory Committee shall, for the purpose of Article 23a(2), prepare decisions and carry out the tasks entrusted to ESMA in the following points:’;

Removed(ii) the following points (ba), (bb) and (bc) are inserted:

Removed‘(ba) at least annually, discuss and identify supervisory priorities for CCPs authorised under Article 14 in order to feed in the preparation of the Union strategic supervisory priorities by ESMA in accordance with Article 29a of Regulation (EU) No 1095/2010;

Removed(bb) consider, in cooperation with the EBA, EIOPA, and the ECB in carrying out its tasks within a single supervisory mechanism under Regulation (EU) No 1024/2013, any cross-border risks arising from CCPs’ activities, including due to CCPs’ interconnectedness, interlinkages and concentration risks due to such cross-border connections;

Removed(bc) prepare draft decisions for adoption by the Board of Supervisors and supervisory assessments conducted in relations to Articles 7, 8, 14 to 17ba, 20, 21, and 24 and Titles IV and V of this Regulation;’ ;

Removed(ii a) point c is replaced by the following:

Removed‘(c) promote the regular exchange and discussion among competent authorities designated in accordance with Article 22(1) of this Regulation in relation to:

Removed(i) relevant activities undertaken by the competent authorities referred to in Article 22 and 22a when carrying out their duties in accordance with this Regulation regarding the authorisation and supervision of CCPs established in their territory;

Removed(ii) relevant market developments, including situations or events which impact or are likely to impact the prudential or financial soundness or the resilience of CCPs authorised in accordance with Article 14 or their clearing members;

Removed(iii) draft decisions submitted by ESMA in accordance with point (bc);'

Removed(iii) the following subparagraph is added:

Removed‘ESMA shall on a yearly basis report to the Commission on the cross-border risks arising from CCPs’ activities referred to in point (bb) in the first subparagraph.’;

Removed(20 a) in Article 24b, paragraphs 1 and 2 are replaced by the following:

Removed‘1. With regard to supervisory assessments conducted in relation to and decisions to be taken pursuant to Articles 41, 44, 46, 49, 50 and 54 in relation to Tier 2 CCPs, the CCP Supervisory Committee shall consult the central banks of issue referred to in point (f) of Article 25(3). Each central bank of issue may respond. Any response shall be received within 10 working days of transmission of the draft decision. In emergency situations, that period shall not exceed 24 hours. Where a central bank of issue proposes amendments or objects to draft assessments related to, or draft decisions pursuant to, Articles 41, 44, 46, 50 and 54, it shall provide full and detailed reasons in writing. Upon the conclusion of the period for consultation, the CCP Supervisory Committee shall duly consider the response from the central banks of issue.

Removed2. Where the CCP Supervisory Committee does not reflect in its draft assessment or draft decision the response from a central bank of issue, the CCP Supervisory Committee shall inform that central bank of issue in writing stating its full reasons for not taking into account the response of that central bank of issue, providing an explanation for any deviations from that response. The CCP Supervisory Committee shall submit to the Board of Supervisors the responses from central banks of issue and its explanations for not taking them into account together with its draft decision.’

Removed(21) Article 25 is amended as follows:

Removed(-a) in paragraph 2, the following point is inserted:

Removed‘(ca) the CCP has provided ESMA with a written statement, signed by its legal representative, expressing the unconditional consent of the CCP to pay the applicable fees in accordance with Article 25d’;

Removed(a) in paragraph 4, the third subparagraph is replaced by the following;

Removed‘The recognition decision shall be based on the conditions set out in paragraph 2 for Tier 1 CCPs and in paragraph 2, points (a) to (d), and paragraph 2b for Tier 2 CCPs. Within 180 working days of the determination that an application is complete in accordance with the second subparagraph, ESMA shall inform the applicant CCP in writing, with a fully reasoned explanation, whether the recognition has been granted or refused.’;

Removed(b) in paragraph 5, the second subparagraph is replaced by the following:

Removed‘Where the review is undertaken in accordance with point (a) of the first subparagraph, it shall be conducted in accordance with paragraphs 2 to 4. Where the review is undertaken in accordance with point (b) of the first subparagraph, it shall also be conducted in accordance with paragraphs 2 to 4, however the CCP referred to in paragraph 1 shall not be required to submit a new application but shall provide ESMA with all information necessary for the review of its recognition.’;

Removed(c) in paragraph 6, the following subparagraph is added:

Removed‘Where in the interests of the Union and considering the potential risks for the Union financial stability due to the expected participation of clearing members and trading venues established in the Union to CCPs established in a third country, the Commission may adopt the implementing act referred to in the first subparagraph irrespective of whether point (c) of that subparagraph is fulfilled.’;

Removed(d) paragraph 7 is replaced by the following:

Removed‘7. ESMA shall establish effective cooperation arrangements with the relevant competent authorities of third countries whose legal and supervisory frameworks have been recognised as equivalent to this Regulation in accordance with paragraph 6..’;

Removed(e) the following paragraphs 7a, 7b and 7c are added:

Removed‘7a. Where ESMA has not yet determined the tiering of a CCP or where ESMA has determined that all or some CCPs in a relevant third country are Tier 1 CCPs, the cooperation arrangements referred to in paragraph 7 shall take into account the risk the provision of clearing services by those CCPs entails and shall specify:

Removed(a) the mechanism for the exchange of information on an annual basis between ESMA, the central banks of issue referred to in paragraph 3, point (f), and the competent authorities of the third countries concerned, so that ESMA is able to:

Removed(i) ensure that the CCP complies with the conditions for recognition under paragraph 2;

Removed(ii) identify any potential material impact on market liquidity or the financial stability of the Union or one or more of its Member States; and

Removed(iii) monitor clearing activities in one, or more, of the CCPs established in such third country by clearing members established in the Union, or is part of a group subject to consolidated supervision in the Union.

Removed(b) exceptionally, the mechanism for the exchange of information on a quarterly basis requiring detailed information covering the aspects referred to in paragraph 2a , as well as the mechanism for the exchange of information on market developments that could have consequences for the financial stability of the Union, and in particular information on significant changes to risk models and parameters, extension of CCP activities and services and changes in the client account structure, with the aim to detect if a CCP is potentially close to becoming or is potentially likely to become systemically important for the financial stability of the Union or one or more of its Member States.

Removed(c) the mechanism for prompt notification to ESMA where a third-country competent authority deems a CCP it is supervising to be in breach of the conditions of its authorisation or of other law to which it is subject;

Removed(ca) the mechanism for prompt notification to ESMA by the third-country competent authority where a third-country CCP intends to extend and reduce its activities and services;

Removed(d) the procedures necessary for the effective monitoring of regulatory and supervisory developments in a third country;

Removed(e) the procedures for third-country authorities to inform ESMA, the third-country CCP college referred to in Article 25c, and the central banks of issue referred to in paragraph 3, point (f), without undue delay of any emergency situations relating to the recognised CCP, including developments in financial markets, which might have an adverse effect on market liquidity and the stability of the financial system in the Union or one of its Member States and the procedures and contingency plans to address such situations;

Removed(f) the procedures for third-country authorities to assure the effective enforcement of decisions adopted by ESMA in accordance with Articles 25f, 25j, 25k(1), point (b), 25l, 25m and 25p;

Removed(g) the consent of third-country authorities to the onward sharing of any information they have provided to ESMA under the cooperation arrangements with the authorities referred to in paragraph 3 and the members of the third-country CCP college, subject to the professional secrecy requirements set out in Article 83.

Removed7b. Where ESMA has determined that at least one CCP in a relevant third country is a Tier 2 CCP, the cooperation arrangements referred to in paragraph 7 shall specify in relation to those Tier 2 CCPs at least the following:

Removed(a) the elements referred to in paragraph 7a, points (a), (c), (d), (e) and (g), where cooperation arrangements are not already established with the relevant third-country pursuant to the second subparagraph;

Removed(b) the mechanism for the exchange of information on at least a monthly basis, as appropriate, between ESMA, the central banks of issue referred to paragraph 3, point (f), and the competent authorities of the third countries concerned, including access to all information requested by ESMA to ensure CCP’s compliance with the requirements referred to in paragraph 2b;

Removed(c) the procedures concerning the coordination of supervisory activities, including the agreement of third-country authorities to allow investigations and on-site inspections in accordance with Articles 25g and 25h respectively;

Removed(d) the procedures for third-country authorities to assure the effective enforcement of decisions adopted by ESMA in accordance with Articles 25b, 25f to 25m, 25p and 25q;

Removed(e) the procedures for third-country authorities to:▌

Removed(i) consult ESMA on the preparation of recovery plans and resolution plans in relation to aspects relevant for the Union or one or more of its Member States;