Changes from plenary report to adopted text

Removed2. The Commission may adopt implementing acts declaring that the legal, supervisory and enforcement arrangements of a third country:

Removed(a) are equivalent to the requirements laid down in Article 11;

Removed(b) ensure protection of professional secrecy that is equivalent to that set out in this Regulation; and

Removed(c) are being effectively applied and enforced in an equitable and non-distortive manner so as to ensure effective supervision and enforcement in that third country.

RemovedThose implementing acts shall be adopted in accordance with the examination procedure referred to in Article 86(2).

Removed3. An implementing act on equivalence as referred to in paragraph 2, point (a), shall imply that counterparties entering into an OTC derivative contract not cleared by a CCP subject to this Regulation are to be deemed to have fulfilled the obligations contained in Article 11 where at least one of the counterparties is established in, or subject to the equivalent requirements of, that third country

Removed(9) Article 14 is amended as follows:

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

Removed‘Where a legal person established in the Union intends to provide clearing services as a CCP, it shall apply for authorisation to ESMA in accordance with the procedure set out in Article 17.

RemovedESMA shall inform the competent authority of the Member State where that legal person is established without delay.’

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

Removed‘3. The authorisation referred to in paragraph 1 shall be granted for activities linked to clearing and shall specify the services or activities which the CCP is authorised to provide or perform including the classes of financial instruments covered by such authorisation.

RemovedAn entity applying for authorisation as a CCP to clear financial instruments shall include in its application, in addition to the classes of financial instrument it applies to clear, the classes of non-financial instruments suitable for clearing that such CCP intends to clear.

RemovedWhere a CCP authorised pursuant to this Article intends to clear classes of non-financial instruments suitable for clearing, it shall apply for an extension of its authorisation pursuant to Article 15.’;

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

Removed‘4. A CCP shall comply at all times with the conditions necessary for authorisation. A CCP shall, without undue delay, notify ESMA and the competent authority of any material changes affecting the conditions for authorisation.’

Removed(b) the following paragraphs 6 and 7 are added:

Removed‘6. To ensure the consistent application of this Article, ESMA shall, in close cooperation with the ESCB, develop draft regulatory technical standards specifying the list of required documents that shall accompany an application for authorisation pursuant to paragraph 1 and specifying the information that such documents shall contain with a view to demonstrating 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 the 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.

Removed7. ESMA shall develop draft implementing technical standards specifying the electronic format of the application to be submitted to the central database for authorisation referred to in paragraph 1.

RemovedESMA shall submit those draft implementing technical standards to the Commission by … [PO: please insert the 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(10) Article 15 is amended as follows:

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

Removed‘1. A CCP wishing to extend its business to additional services or activities not covered by the existing authorisation, or a CCP that has not, during the previous 12 months, provided clearing services or activities in a class of financial instrument or a class of non-financial instrument covered by the existing authorisation and that wishes to offer clearing services or activities for those instruments, shall submit a request for extension ESMA. The offering of clearing services or activities for which the CCP has not already been authorised, or for which it has been authorised but which it has not provided during the previous 12 months, shall be considered to be an extension of that authorisation.

RemovedThe extension of authorisation shall be made in accordance with either of the following:

Removed(a) the procedure set out in Article 17;

Removed(b) the procedure set out in Article 17a where the applicant CCP so requests pursuant to Article 17a(3).’;

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

Removed‘3. ESMA shall, in close cooperation with the ESCB, develop draft regulatory technical standards specifying the list of required documents that shall accompany an application for an extension of authorisation pursuant to paragraph 1 and specifying the information such documents shall contain with a view to demonstrating that the CCP meets all relevant requirements of this Regulation.

RemovedESMA shall submit those draft regulatory technical standards to the Commission by … [PO: please insert the 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(c) the following paragraph 4 is added:

Removed‘4. ESMA shall develop draft implementing technical standards specifying the electronic format of the application to be submitted to the central database for an extension of the authorisation referred to in paragraph 1.

RemovedESMA shall submit those draft implementing technical standards to the Commission by … [PO: please insert the 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(11) Article 17 is amended as follows:

Removed(a) the title of the Article is replaced by the following:

Removed‘Procedure for granting and refusing an application for authorisation or for an extension of authorisation’

Removed(b) paragraphs 1, 2 and 3 are replaced by the following:

Removed‘1. The applicant CCP shall submit an application for authorisation as referred to in Article 14(1) or an application for an extension of its authorisation as referred to in Article 15(1) in an electronic format via the central database referred to in paragraph 7. The application shall be immediately shared with ESMA, the CCP’s competent authority,▌ and the college referred to in Article 18(1).

RemovedESMA shall, within 5 working days after such application has been received, acknowledge receipt of the application, stating to the CCP whether it contains the documents required pursuant to Article 14(6) and (7) or, where the CCP has applied for an extension of its authorisation, pursuant to Article 15(3) and (4).

RemovedWhere ESMA determines that not all documents required pursuant to Article 14(6) and (7) or Article 15(3) and (4) have been submitted, it shall reject the CCP’s application.

Removed2. The applicant CCP shall provide all information necessary to demonstrate that it has established, at the time of the initial authorisation, all the necessary arrangements to meet the requirements laid down in this Regulation. Where an applicant CCP requests an extension of authorisation pursuant to Article 15, it shall provide all information necessary to demonstrate that at the time when such extension of authorisation under Article 15 is granted, it will have established all additional arrangements to meet any requirements laid down in this Regulation in respect of such extension of authorisation.

Removed3. Within 40 working days of the end of the period set out in the second subparagraph of paragraph 1 (“the risk assessment period”), the CCP’s competent authority, ESMA and the college shall each conduct risk assessments of the CCP’s compliance with the relevant requirements laid down in this Regulation. By the end of the risk assessment period, the college shall transmit its opinion and report to ESMA and the CCP’s competent authority, and ESMA shall transmit its draft decision and report to the CCP's competent authority and the college.

Removed▌

Removed(d) the following paragraphs 3a and 3b are inserted:

Removed‘3a. During the risk assessment period referred to in paragraph 3, the CCP’s competent authority, ESMA or any of the college members may submit questions directly to the CCP. Where the CCP does not respond to such questions within the time period set by the requesting authority, ▌ ESMA or the college may take a decision in the absence of the CCP’s response or may decide to extend the assessment period by a maximum of 10 working days, if, in their view, the question is material for the assessment. A CCP shall not be required to respond more than once to a specific question, provided that the question has been answered correctly.

Removed3b. Within 15 working days of receipt of both the ESMA opinion and the college opinion, ESMA shall adopt its decision and transmit it to the applicant CCP, the CCP’s competent authority and the college.

RemovedWhere ESMA does not agree with an opinion of ESMA or 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.

Removed▌

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

Removed‘4. ESMA shall, after duly considering the opinions of ESMA and the college referred to in paragraph 3, including any conditions or recommendations contained therein, grant authorisation as referred to in Articles 14 and Article 15(1), second subparagraph, point (a), only where it is fully satisfied that the applicant CCP:

Removed(a) complies with all the requirements laid down in this Regulation including, where applicable, for the provision of clearing services or activities for non-financial instruments; and

Removed(b) is notified as a system pursuant to Directive 98/26/EC.

RemovedWhere an applicant CCP requests an extension of authorisation pursuant to Article 15, ESMA may rely on part of the assessment previously carried out pursuant to this Article to the extent that no change to such part would arise as a result of such request for extension of authorisation. The CCP shall confirm to ESMA that there is no change to the underlying facts of the part of the assessment on which ESMA chooses to rely.

RemovedThe CCP shall not be authorised where all the members of the college, excluding ESMA, reach a joint opinion by mutual agreement, pursuant to Article 19(1), that the CCP not be authorised. That opinion shall state in writing the full and detailed reasons why the college considers that the requirements laid down in this Regulation or other Union law are not met.

Removed▌

Removed(f) paragraph 7 is replaced by the following:‘7. ESMA shall maintain a central database providing access to the CCP’s competent authority, ESMA, and the members of the college for that CCP