Changes from plenary report to adopted text

Removed(33) Article 46 is amended as follows:

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

Removed‘1. A CCP shall accept highly liquid collateral with minimal credit and market risk to cover its initial and ongoing exposure to its clearing members. A CCP may accept public guarantees or public bank or commercial bank guarantees, including on an uncollateralised basis for non-financial counterparties, provided that they are unconditionally available upon request within the liquidation period referred to in Article 41. Where bank guarantees are provided to a CCP, that CCP shall take them into account when calculating its exposure to the bank that is also a clearing member, and shall subject uncollateralised bank guarantees provided by non-financial counterparties to concentration limits. The CCP shall apply adequate haircuts to asset values and guarantees to reflect the potential for their value to decline over the interval between their last revaluation and the time by which they can reasonably be assumed to be liquidated. It shall take into account the liquidity risk following the default of a market participant and the concentration risk on certain assets that may result in establishing the acceptable collateral and the relevant haircuts. When revising the level of the haircuts it applies to the assets it accepts as collateral, the CCP shall take into account any potential procyclicality effects of such revisions.’;

Removed(b) in paragraph 3, first subparagraph, point (b) and (c) are is replaced by the following:

Removed‘(b) the haircuts referred to in paragraph 1, taking into account the objective to limit their procyclicality; and’;

Removed(c) the conditions under which public guarantees, public bank guarantees and commercial bank guarantees may be accepted as collateral under paragraph 1, including the conditions under which uncollateralised bank guarantees may be accepted as collateral and the concentration limits as referred to in paragraph 1.’

Removed(33a) Article 48 is amended as follows:

Removed(a) paragraph 5 is replaced by the following:

Removed"5. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s clients in accordance with Article 39(2), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of its clients to another clearing member designated by all of those clients, on their request or unless all clients object before the transfer of assets and positions is concluded and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept those assets and positions only where it has previously entered into a contractual relationship with the clients by which it has committed itself to do so. When designating a clearing member, clients shall contractually designate an alternative clearing member to be used in case their positions need to be transferred in the event of default. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of its clients.”;

Removed(b) paragraph 6 is replaced by the following:

Removed"6. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s client in accordance with Article 39(3), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of the client to another clearing member designated by the client, on the client’s request and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept these assets and positions only where it has previously entered into a contractual relationship with the client by which it has committed itself to do so. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of the client.

RemovedIn the case of default of an existing clearing member and for the purposes of porting clients from the defaulting clearing members towards an alternative clearing member, such alternative clearing member, the client subject to porting and the CCP shall be temporary waived from the requirements of Directive (EU) 2015/849, Directive (EU) 2018/843 and Directive (EU) 2019/1153. The alternative clearing member shall be temporarily waived from the requirements of capital for clearing members towards clients under Regulation (EU) No 575/2013.”;

Removed(34) Article 49 is amended as follows:

Removed(a) paragraphs 1 to 1e are replaced by the following:

Removed‘1. A CCP shall regularly review the models and parameters adopted to calculate its margin requirements, default fund contributions, collateral requirements and other risk control mechanisms. It shall subject the models to rigorous and frequent stress tests to assess their resilience in extreme but plausible market conditions and shall perform back tests to assess the reliability of the methodology adopted. The CCP shall obtain independent validation, shall inform ▌ESMA of the results of the tests performed and shall obtain ESMA’s validation in accordance with paragraphs 1a, to 1e before adopting any significant change to the models and parameters.

RemovedThe adopted models and parameters, including any significant change thereto, shall be subject to an opinion of the college in accordance with this Article.

RemovedESMA shall ensure that information on the results of the stress tests is passed on to the ESAs, the ESCB and the Single Resolution Board to enable them to assess the exposure of financial undertakings to the default of CCPs.

Removed1a. Where a CCP intends to adopt any significant change to the models and parameters referred to in paragraph 1, it shall submit an application for validation of such change in an electronic format via the central database referred to in Article 17(7) where it shall be immediately shared with the CCP’s competent authority, ESMA and the college. The CCP shall enclose an independent validation of the intended change to its application.

RemovedWhere a CCP considers that the change to the models and parameters referred to in paragraph 1 it intends to adopt is not significant as referred to in paragraph 1ga, the CCP shall request that the application be subject to a non-objection procedure under paragraph 1b. In that case, the CCP may start applying such change before the decision of the CCP’s competent authority and ESMA pursuant to paragraph 1b.

RemovedESMA shall▌ within 5 working days after such application has been received, acknowledge receipt of the application, confirming to the CCP that it contains the required documents. Where ESMA concludes that the application does not contain the required documents, the application shall be rejected.

Removed1b. Within 15 working days of the date referred to in the third subparagraph of paragraph 1a, ESMA, after considering the input of the college, shall assess if the proposed change qualifies as a significant change pursuant to paragraph 1g. Where ESMA concludes that the change meets one of the conditions referred to in paragraph 1g, the application shall be assessed under paragraphs 1c, 1d and1e and ESMA shall inform in writing the applicant CCP thereof.

RemovedWhere within 10 working days of the date referred to in the third subparagraph of paragraph 1a, the applicant CCP has not been informed in writing that its request for the non-objection procedure to apply has been denied, that change shall be deemed as validated.

RemovedWhere a request for the non-objection procedure has been denied, the CCP shall, within 5 working days from the notification referred to in the first subparagraph, no longer use that model change. Within 10 working days from that notification, the CCP shall either withdraw the application or complement the application with the independent validation of the change.

Removed1c. Within 30 working days of the date referred to in the third subparagraph of paragraph 1a, ESMA shall conduct a risk assessment of the significant change and transmit its draft decision to the CCP's competent authority and the college.

RemovedWithin 10 working days of receipt of the draft decision of ESMA, the college shall adopt an opinion pursuant to Article 19 and transmit it to ESMA

Removed▌

Removed▌

Removed1d. Within 10 working days of receipt of the college opinion, ESMA shall, after duly considering the opinion of the college, including any conditions or recommendations contained therein, adopt its final decision and transmit it to the CCP's competent authority and the college.

RemovedWhere ESMA does not agree with the opinion of the college, including any conditions or recommendations contained therein, its decision shall contain full reasons and an explanation of any significant deviation from that opinion or conditions or recommendations. Where ESMA decides not to validate the change, the CCP's application for validation shall be refused.

Removed1e. Within 5 working days of the decisions being adopted under paragraph 1c, ▌ESMA shall inform the CCP’s competent authority and the CCP in writing, including a fully reasoned explanation, whether the validation has been granted or refused.

Removed(b) the following paragraphs 1f and 1g are inserted:

Removed1f. The CCP may not adopt any significant change to the models and parameters referred to in paragraph 1, before obtaining the validations by its competent authority and ESMA. The competent authority, in agreement with ESMA, may allow for a provisional adoption of a significant change of those models prior to their validations where duly justified due to an emergency situation under Article 24 of this Regulation. Such a temporary change to the models shall only be allowed for a certain period of time jointly specified by the CCP’s competent authority and ESMA. After the expiry of this period, the CCP shall not be allowed to use such model change unless it has been approved pursuant to paragraphs 1a, 1c, 1d and 1e.

Removed1g. Changes to parameters derived from external input or which are within a pre-defined range, where such amendment or range to recalibrate a model is part of the model or methodology approved and validated under this Article, shall not be considered a change to the models and parameters requiring validation in accordance with this Article. .”

Removed1ga. A change shall be considered as significant where one or more of the following conditions is met:

Removed(a) the change leads to a decrease or increase of the total pre-funded financial resources, including margin requirements, default fund and skin-in-the-game, of more than 15%;

Removed(b) the methodology for defining and calibrating stress test scenarios for the purpose of determining default fund exposures, is changed, leading to a decrease or increase of more than 20 % of a default fund or of more than 50 % of any individual default fund contribution;

Removed(c) the methodology applied to assess liquidity risk and monitor concentration risk, is changed, leading to a decrease or increase of the estimated liquidity needs in any currency of more than 20 % or the total liquidity needs of more than 20 %;

Removed(d) the methodology applied to value collateral, or calibrate collateral haircut, is changed, such that the total value of collateral decreases or increases by more than 20%;

Removed(e) the change could have a material effect on the overall risk of the CCP.

Removed(c) paragraph 5 is replaced by the following:

Removed‘5. ESMA shall, in close cooperation with the ESCB, develop draft regulatory technical standards specifying:

Removed(a) the elements to be considered when assessing the conditions referred to in paragraphs 1g and 1ga; and

Removed(b) the list of required documents that shall accompany an application for validation pursuant to paragraph 1a and shall specify the information such documents shall contain to demonstrate that the CCP complies with all relevant requirements of this Regulation.

RemovedESMA shall submit those draft regulatory technical standards to the Commission by … [PO: please insert date =12 months after the date of 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(d) the following paragraph 6 is added:

Removed‘6. ESMA shall develop draft implementing technical standards specifying the electronic format of the application for validation referred to in paragraph 1a to be submitted to the central database.

RemovedESMA shall submit those draft implementing technical standards to the Commission by… [PO: please insert date = 12 months after the date of entry into force of this 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) No 1095/2010.’

Removed(35) ▌Article 54▌ is replaced by the following:

Removed‘Article 54

RemovedApproval of interoperability arrangements

Removed‘1. An interoperability arrangement shall be subject to the prior approval of ESMA. ESMA. shall request the opinion of ▌the college in accordance with Article 19, and issued in accordance with the procedure set out in Article 17b.’;

RemovedInteroperability arrangements that were approved prior to the entry into force of this Regulation shall not be subject to the requirements of the first subparagraph.

Removed2. ESMA shall grant approval of the interoperability arrangement only where the CCPs involved have been authorised to clear under Article 17 or recognised under Article 25 or authorised under a pre-existing national authorisation regime for a period of at least three years, the requirements laid down in Article 52 are met and the technical conditions for clearing transactions under the terms of the arrangement allow for a smooth and orderly functioning of financial markets and the arrangement does not undermine the effectiveness of supervision.

Removed3. Where ESMA considers that the requirements laid down in paragraph 2 are not met, it shall provide explanations in writing regarding its risk considerations to the CCPs involved.

Removed4. By 31 December 2012, ESMA shall issue guidelines or recommendations with a view to establishing consistent, efficient and effective assessments of interoperability arrangements, in accordance with the procedure laid down in Article 16 of Regulation (EU) No 1095/2010.’

Removed(36)iIn Article 81(3), the following point is inserted:

Removed‘(s) the designated national macroprudential authorities entrusted with the conduct of macroprudential policy’ referred to in Recommendation B1 of the Recommendation of the European Systemic Risk Board (ESRB) of 22 December 2011 on the macroprudential mandate of national authorities (ESRB/2011/3).’;

Removed(37) In Article 82, paragraphs 2 and 3 are replaced by the following: