Changes from plenary report to adopted text

Removed“2. The power to adopt delegated acts referred to in Articles 1(6), Article 3(5), Article 4(3a), Article 7a(6), Article 17a(6), Article 25(2a), Article 25(6a), Article 25a(3), Article 25d(3), Article 25i(7), Article 25o, Article 64(7), Article 70, Article 72(3), and Article 85(2) shall be conferred to the Commission for an indeterminate period of time.

Removed3. The delegation of power referred to in Article 1(6), Article 3(5), Article 4(3a), Article 7a(6), Article 17a(6), Article 25(2a), Article 25(6a), Article 25a(3), Article 25d(3), Article 25i(7), Article 25o, Article 64(7), Article 70, Article 72(3) and Article 85(2) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Removed(38) in Article 84, the following paragraph is inserted:

Removed‘3a. The Agency implementing Article 8(2) and (6) of Regulation (EU) No 1227/2011 shall transmit to ESMA the amount of trading taking place and on positions held in wholesale energy products.’

Removed(39) Article 85 is amended as follows;

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

Removed‘1. By [PO: please insert the date =5 years after the date of entry into force of this Regulation] the Commission shall assess the application of this Regulation and prepare a general report. The Commission shall submit that report to the European Parliament and to the Council, together with any appropriate proposals.’;

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

Removed‘1b. By [PO: please insert the date = 1 year after the entry into force of this Regulation] ESMA shall submit a report to the Commission on the possibility and feasibility to require the segregation of accounts across the clearing chain of non-financial and financial counterparties. The report shall be accompanied by a cost-benefit analysis.’;

Removed(bb) the following paragraph is inserted:

Removed‘1d. By ... [24 months from the date of entry into force of this amending Regulation], the European Commission, after having consulted the ECB and the relevant central banks of issue, shall provide a report to the European Parliament and the Council assessing level playing field and financial stability considerations in relation to generalized central bank access for EMIR-authorized Union CCPs without the condition of maintaining a banking license. In this context, the Commission shall also take into consideration the situation in third-country jurisdictions. If appropriate, the report shall be accompanied by a legislative proposal.' (AM 532 Ferber);

Removed(bc) the following paragraph is inserted:

Removed‘5a. By ... [36 months from the date of entry into force of this amending Regulation] ESMA shall present a report to the European Parliament, the Council and the Commission on the overall activity in derivative transactions of financial and non-financial counterparties subject to this Regulation, providing, inter alia, the following information on those counterparties, differentiating between their financial or non-financial nature:

Removed(a) the potential risks to Union financial stability that may arise from this type of activity;

Removed(b) the positions in OTC commodity derivatives in excess of EUR 1 billion, specifying the exact amount of the positions concerned;

Removed(c) the total volume of energy derivative contracts traded, distinguishing, where relevant, between those used for hedging and non-hedging purposes;

Removed(d) the total volume of agricultural derivative contracts traded, distinguishing, where relevant, between those used for hedging and non-hedging purposes; and

Removed(e) the share of OTC and exchange-traded energy/agriculture derivative contracts that are physically delivered on the expiry date in the total volume of energy derivative contracts traded.

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

Removed“7. By ... [5 years from the date of entry into force of this amending Regulation] the Commission, in close cooperation with ESMA and the Joint Monitoring Mechanism, shall publish a review report on the application of this Regulation. That report shall evaluate, inter alia, the following:

Removed(a) the effectiveness of the provisions under Article 7a in mitigating the financial stability risks for the Union represented by the concentration of outstanding derivative contracts as referred to in paragraph 3 of Article 7a at those Tier 2 CCPs offering services of substantial systemic importance pursuant to Article 25(2c), as well as their impact on the international competitiveness of EU financial counterparties and non-financial counterparties. The report shall also indicate, taking into due account the goals of the capital markets union, whether those provisions should be adjusted or removed altogether;

Removed(b) the effectiveness of the provisions of this Regulation on increasing the attractiveness of the Union clearing framework, looking in particular at the clearing activities of non-EU counterparties in Union CCPs and the amount of clearing volumes in Union CCPs in derivative contracts other than those referred to in paragraph 3 of Article 7a;

Removed(c) an assessment of the developments related to supervisory arrangements and supervisory cooperation between ESMA and third-country authorities, and whether those developments may require changes to Article 25(2c) of this Regulation.

RemovedBased on that report, the Commission may submit, where appropriate, a legislative proposal to the European Parliament and the Council.”

Removed(ca) the following paragraph is added:

Removed10. By ... [18 months from the date of entry into force of this amending Regulation] ESMA shall, in close cooperation with the ESRB and the Joint Monitoring Mechanism, assess how the provisions of Article 15, Articles 17 to 17ba and Article 49 have been applied.

RemovedIn particular, that assessment shall establish:

Removed(a) whether the changes introduced by Regulation (EU) .../... of the European Parliament and of the Council*+ have obtained the desired effect with respect to increasing the competitiveness of Union CCPs and reduce the regulatory burden they face;

Removed(b) whether the changes introduced by Regulation (EU) .../...+ have reduced the time-to-market for new services and products without negatively impacting the risk for the CCP or its clearing members or their clients;

Removed(c) whether the introduction of the possibility for CCPs to implement directly changes as referred to in Article 17ba have negatively impacted the risk profile of that CCP or have increased the overall financial stability risks in the Union, and whether they should be amended.

RemovedESMA shall submit that report to the European Parliament, the Council and the Commission.

RemovedThe Commission shall be empowered to adopt delegated acts in accordance with Article 50 to modify certain elements of the definitions laid down in Article 15, Articles 17 to 17ba and Article 49 to consider the assessment contained in the report pursuant to the first and second subparagraphs of this Article.

Removed__________________

Removed* Regulation (EU) .../... of the European Parliament and of the Council of ... amending Regulations (EU) No 648/2012, (EU) No 575/2013 and (EU) 2017/1131 as regards measures to mitigate excessive exposures to third-country central counterparties and improve the efficiency of Union clearing markets (OJ L ..., ...., p. ....).

Removed+ OJ: Please insert the year and the number of this amending Regulation in the text and complete the corresponding footnote.

Removed(40b) in Article 89, the following paragraph is added :

Removed“ 10. Financial counterparties that are subject to the clearing obligation referred to in Article 4(1) on ... [the date of entry into force of this amending Regulation] or that become subject to the clearing obligation in accordance with Article 4a(1) and non-financial counterparties that are subject to the clearing obligation referred to in Article 4(1) on ... [the date of entry into force of this amending Regulation] or that become subject to the clearing obligation in accordance with Article 10(1), second subparagraph, shall remain subject to that clearing obligation and shall continue clearing until such financial counterparty or non-financial counterparty demonstrates to the relevant competent authority that its aggregate month-end average position for the previous 12 months does not exceed the relevant clearing thresholds set by the regulatory technical standards referred to in Article 10(4), point (b), and where such regulatory technical standards have entered into force providing the levels of the clearing thresholds for uncleared derivatives and the level of any activity threshold.”

Removed(41) Article 90 is amended as follows:

Removed“By [PO please insert the date = please insert 3 years after the date of entry into force of this Regulation], ESMA shall assess the staffing and resources needs arising from the assumption of its powers and duties in accordance with this Regulation and submit a report to the European Parliament, the Council and the Commission.”

RemovedAmendments to Regulation (EU) No 575/2013

Removed(1) in paragraph 4, point (b) is replaced by the following:

Removed‘(b) intragroup transactions entered into with financial counterparties as defined in Article 2, point 8, of Regulation (EU) No 648/2012, financial institutions or ancillary services undertakings that are established in the Union or that are established in a third country that applies prudential and supervisory requirements to those financial counterparties, financial institutions or ancillary services undertakings that are at least equivalent to those applied in the Union, unless Member States adopt national law requiring the structural separation within a banking group, in which case the competent authorities may require those intragroup transactions between the structurally separated entities to be included in the own funds requirements;’

Removed(2) the following paragraph [4c] is inserted:

Removed‘[4c]. For the purposes of paragraph 4, point (b), the Commission may adopt, by way of implementing acts, and subject to the examination procedure referred to in Article 464(2), a decision as to whether a third country applies prudential supervisory and regulatory requirements at least equivalent to those applied in the Union.

RemovedIn the absence of such a decision, institutions may until 31 December 2027 continue to exclude the concerned intragroup transactions from the own funds requirements for CVA risk provided that the relevant competent authorities have approved the third country as eligible for that treatment before 31 December 2026. Competent authorities shall notify the EBA of such cases by 31 March 2027.’

RemovedAmendments to Regulation (EU) 2017/1131

RemovedRegulation (EU) 2017/1131 is amended as follows:

Removed(1) in Article 2, the following point (24) is added

Removed‘(24) ‘CCP’ means a legal personas referred to in Article 2 (1) of Regulation (EU) No 648/2012.’;

Removed(1a) in Article 14, point (d) is replaced by the following:

Removed‘(d) the cash received by the MMF as part of a non-centrally cleared repurchase agreement does not exceed 10 % of its assets’;

Removed(2) Article 17 is amended as follows:

Removed(a) paragraph 4 is replaced by the following:

Removed‘4. The aggregate risk exposure to the same counterparty of an MMF stemming from derivative transactions which fulfil the conditions set out in Article 13 and which are not centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation, shall not exceed 5 % of the assets of the MMF.’;

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

Removed‘5. The aggregate amount of cash provided to the same counterparty of an MMF in a non-centrally cleared reverse repurchase agreements shall not exceed 15 % of the assets of the MMF.’

Removed(b) in paragraph 6, first subparagraph, point (c) is replaced by the following:

Removed‘(c) financial derivative instruments that are not centrally cleared through a CCP authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation, giving counterparty risk exposure to that body.’.

RemovedAmendments to Regulation (EU) 2010/1095

RemovedIn Article 1(2), the first subparagraph is replaced by the following: