Changes from plenary report to adopted text

Removed(a) another CCP, a credit institution, assurance undertaking, insurance undertaking, reinsurance undertaking, investment firm, market operator, an operator of a securities settlement system, a UCITS management company or an AIFM authorised in another Member State;

Removed(b) the parent undertaking of another CCP, a credit institution, assurance undertaking, insurance undertaking, reinsurance undertaking, investment firm, market operator, an operator of a securities settlement system, a UCITS management company or an AIFM authorised in another Member State;

Removed(c) a natural or legal person controlling another CCP, a credit institution, assurance undertaking, insurance undertaking, reinsurance undertaking, investment firm, market operator, an operator of a securities settlement system, a UCITS management company or an AIFM authorised in another Member State.

Removed7. ESMA and the competent authorities shall, without undue delay, provide each other with any information which is essential or relevant for the assessment. ESMA and the competent authorities shall, upon request, communicate all relevant information to each other and shall communicate all essential information at their own initiative. A decision of ESMA to authorise the CCP in which the acquisition is proposed shall indicate any views or reservations expressed by ESMA or the competent authority responsible for the proposed acquirer.

Removed(28) Article 35 is amended as follows:

Removed(a) in paragraph 1, the second subparagraph is replaced by the following:

Removed‘A CCP shall not outsource major activities linked to risk management unless such outsourcing is approved by ESMA. The decision of ESMA shall be subject to an opinion of the college pursuant to Article 19 ▌in accordance with the procedure set out in Article 17b.’;

Removed(aa) paragraph 2 is replaced by the following:

Removed‘2. ESMA shall require the CCP to allocate and set out clearly its rights and obligations, and those of the service provider, in a written agreement”

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

Removed‘3. A CCP shall make all information necessary to enable the competent authority, ESMA and the college to assess the compliance of the performance of the outsourced activities with this Regulation available on request.’;

Removed(ba) the following paragraphs are added:

Removed‘4. In order to ensure the consistent application of this Article, ESMA shall develop draft regulatory technical standards specifying the concrete requirements of the outsourcing arrangements and the criteria determining major activities linked to the risk management and to other critical functions of the CCP in accordance with paragraph 1 of this Article. ESMA shall submit those draft regulatory technical standards to the Commission by ... [12 months from the entry into force of this Regulation].

RemovedPower is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.

Removed5. In order to ensure uniform conditions of application of this Article, ESMA shall develop draft implementing technical standards specifying:

Removed(a) the minimum information to be included in the written agreements in accordance with paragraph 2;

Removed(b) the type of information to be submitted to the competent authority and ESMA in accordance with paragraph 3;

RemovedESMA shall submit those draft implementing technical standards to the Commission by ... [12 months from the date of entry into force of this amedning Regulation].

RemovedPower is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No1095/2010.’

Removed(29) Article 37 is amended as follows:

Removed(a) paragraph 1 is replaced by the following:

Removed‘1. A CCP shall establish, where relevant per type of product cleared, the categories of admissible clearing members and the admission criteria, upon the advice of the risk committee pursuant to Article 28(3). Such criteria shall be non-discriminatory, transparent and objective so as to ensure fair and open access to the CCP and shall ensure that clearing members have sufficient financial resources and operational capacity to meet the obligations arising from participation in a CCP. Criteria that restrict access shall be permitted only to the extent that their objective is to control the risk for the CCP. Without prejudice to interoperability arrangements or investment activities for the purposes of Article 47 the criteria shall ensure that CCPs or clearing houses cannot be clearing members, directly or indirectly, of the CCP.’;

Removed(b) the following paragraph 1a is inserted:

Removed‘1a. A CCP shall accept non-financial counterparties as clearing members only if they are able to demonstrate that they are able to fulfil the margin requirements and default fund contributions, including in stressed market conditions.

RemovedESMA shall regularly review the arrangements put in place by a CCP accepting non-financial counterparties as clearing members and report to the CCP's competent authority and to the college on their appropriateness.

RemovedA non-financial counterparty acting as a clearing member shall not be permitted to offer client clearing services and shall only keep accounts at the CCP for assets and positions held for its own account.

RemovedESMA may issue an opinion or a recommendation on the appropriateness of such arrangements following an ad-hoc peer review.’;

Removed(c) the following paragraph 7 is added:

Removed‘7. ESMA shall, after having consulted the EBA and the ESCB, develop draft regulatory technical standards further specifying the elements to be considered when laying down the admission criteria referred to in paragraph 1 and the participation requirements for accepting non-financial counterparties as clearing members in accordance with paragraph 1a.

RemovedESMA shall submit those draft regulatory technical standards to the Commission by … [PO please enter 12 months after entry into force of this Regulation].

RemovedPower is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010”.

Removed(30) Article 38 is amended as follows:

Removed"Article 38

RemovedTransparency

Removed"1. A CCP and its clearing members shall publicly disclose the prices and fees associated with the services provided. They shall disclose the prices and fees of each service provided separately, including discounts and rebates and the conditions to benefit from those reductions. A CCP shall allow its clearing members and, where relevant, their clients separate access to the specific services provided.

RemovedA CCP shall account separately for costs and revenues of the services provided and shall disclose that information to ESMA and the competent authority.

Removed2. A CCP shall disclose to clearing members and clients the risks associated with the services provided.

Removed3. A CCP shall disclose to ESMA, its clearing members and to its competent authority the price information used to calculate its end-of-day exposures to its clearing members.

RemovedA CCP shall publicly disclose the volumes of the cleared transactions for each class of instruments cleared by the CCP on an aggregated basis.

Removed4. A CCP shall publicly disclose the operational and technical requirements relating to the communication protocols covering content and message formats it uses to interact with third parties, including the operational and technical requirements referred to in Article 7.

Removed5. A CCP shall publicly disclose any breaches by clearing members of the criteria referred to in Article 37(1) and the requirements laid down in paragraph 1 of this Article, except where ESMA, after consulting the competent authority, considers that such disclosure would constitute a threat to financial stability or to market confidence or would seriously jeopardise the financial markets or cause disproportionate damage to the parties involved.

Removed6. A CCP shall provide its clearing members with a simulation tool allowing them to determine the amount of additional initial margin at portfolio level, that the CCP may require upon the clearing of a new transaction, including simulation of the margin requirements that they might be subject to under different scenarios. That tool shall only be accessible to clearing members on a secured access basis, and the results of the simulation shall not be binding.

Removed7. A CCP shall provide its clearing members with information on the margin models it uses in a clear and transparent manner. That information shall:

Removed(a) clearly explain the design of the margin model and how it operates;

Removed(b) clearly describe the key assumptions and limitations of the margin model and the circumstances under which those assumptions are no longer valid;

Removed(c) be documented.

Removed▌

Removed8. ‘Clearing members ▌ and clients providing clearing services shall inform their clients in a clear and transparent manner of the way the margin models of the CCP work, including in stress situations, and provide them with access to a simulation of the margin requirements that they might be subject to under different scenarios, based on the simulation tool provided by the CCP as referred to in paragraph 6.. The clearing members shall ensure that the simulation includes both the margins required by the CCP and any additional margins required by the clearing members and the clients providing clearing services themselves.’;

RemovedA CCP shall provide its clearing members with any information they require to comply with the provisions under the first subparagraph of this paragraph, unless that information is already provided pursuant to the provisions as referred to in paragraphs 1 to 7 of this Article. Upon request by one of its clearing, the CCP shall transmit that information without delay.

Removed▌

Removed‘9. The clearing members of the CCP and clients providing clearing services, shall clearly inform their existing and potential clients of the potential losses or other costs that they may bear as a result of the application of default management procedures and loss and position allocation arrangements under the CCP’s operating rules, including the type of compensation they may receive, taking into account Article 48(7). Clients shall be provided with sufficiently detailed information to ensure that they understand the worst-case losses or other costs they could face should the CCP undertake recovery measures.’;

Removed10. ESMA shall, in consultation with EBA and the ESCB, develop draft regulatory technical standards further specifying the information to be provided under paragraphs 1 to 9, as well as the requirements related to the simulation tools as referred to in paragraphs 6 and 8.

RemovedESMA shall submit those draft regulatory technical standards to the Commission by … [12 months from the date of entry into force of this amending Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.’

Removed(31) Article 41 is amended as follows:

Removed(a) paragraphs 1, 2 and are replaced by the following:

Removed‘1. A CCP shall impose, call and collect margins to limit its credit exposures from its clearing members and, where relevant, from CCPs with which it has interoperability arrangements. Such margins shall be sufficient to cover potential exposures that the CCP estimates will occur until the liquidation of the relevant positions. They shall also be sufficient to cover losses that result from at least 99 % of the exposures movements over an appropriate time horizon and they shall ensure that a CCP fully collateralises its exposures with all its clearing members, and, where relevant, with CCPs with which it has interoperability arrangements, at least on a daily basis. A CCP shall continuously monitor and revise the level of its margins to reflect current market conditions taking into account any potentially procyclical effects of such revisions.

Removed2. A CCP shall adopt models and parameters in setting its margin requirements that capture the risk characteristics of the products cleared and take into account the interval between margin collections, market liquidity and the possibility of changes over the duration of the transaction. The models and parameters shall be validated by ESMA and subject to an opinion▌ in accordance with the procedure under Article 17b.

Removed3. A CCP shall call and collect margins on an intraday basis, at least when predefined thresholds are exceeded. In doing so a CCP shall consider the potential impact of its intraday margin collections and payments on the liquidity position of its participants and on the resilience of the CCP’;

Removed(32) in Article 44(1), the second subparagraph is replaced by the following :

Removed‘A CCP shall measure, on a daily basis, its potential liquidity needs. It shall take into account the liquidity risk generated by the default of at least the two entities, being either clearing members or liquidity providers, to which it has the largest exposures.’;