Text · Amendment list
Settlement finality and repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral arrangements
Document ECON-AM-791082 · COM(2025)0941 – 2025/0381(COD)
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- Amendment list ECON-AM-791082
- Date
- 20 July 2026
- Committee
- Committee on Economic and Monetary Affairs
- Dossier
- 2025-0381
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- COM(2025)0941 – 2025/0381(COD)
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| Text proposed by the Commission | Amendment |
|---|---|
| (1a) The harmonisation of settlement finality rules should contribute to the development of integrated, open, competitive, innovative and resilient Union financial markets. When implementing this proposal and drawing up technical standards, the competent authorities, ESMA, and EBA shall avoid unnecessary or duplicated administrative burdens and shall take into account the impact of their actions on the cost of access to infrastructure, cross-border activity, responsible financial innovation and the international competitiveness of Union financial markets, without prejudice to legal certainty and financial stability. |
| Text proposed by the Commission | Amendment |
|---|---|
| (5a) Settlement systems designated in accordance with Directive 98/26/EC have already undergone an authorisation process. To avoid duplicative reporting, Member States should not require designated settlement systems to resubmit information that has already been provided as part of that process. |
| Text proposed by the Commission | Amendment |
|---|---|
| (7) Regulation (EU) 2022/858 of the European Parliament and of the Council6 allows for market infrastructures based on DLT to test and experiment with the provision of certain services via DLT, including by establishing systems that settle transfer orders in DLT-based financial instruments. It should be possible to designate such systems under this Regulation, subject to their compliance with the conditions set out in both Regulation (EU) 2022/858 and this Regulation. The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) should be mandated to further specify the rules on how to assess and determine settlement finality in systems that use DLT. | (7) Regulation (EU) 2022/858 of the European Parliament and of the Council6 allows for market infrastructures based on DLT to test and experiment with the provision of certain services via DLT, including by establishing systems that settle transfer orders in DLT-based financial instruments. It should be possible to designate such systems under this Regulation, subject to their compliance with the conditions set out in both Regulation (EU) 2022/858 and this Regulation. The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) should be mandated to further specify the rules on how to assess and determine settlement finality in systems that use DLT. Given the rapid technological evolution and the need to provide immediate legal certainty to market participants, ESMA and EBA should develop draft regulatory technical standards to this effect within a strict timeframe of 12 months from the date of entry into force of this Regulation. |
| 6 Regulation (EU) 2022/858 of the European Parliament and of the Council of 30 May 2022 on a pilot regime for market infrastructures based on distributed ledger technology, and amending Regulations (EU) No 600/2014 and (EU) No 909/2014 and Directive 2014/65/EU (OJ L 151, 2.6.2022, p. 1), http://data.europa.eu/eli/reg/2022/858/oj | 6 Regulation (EU) 2022/858 of the European Parliament and of the Council of 30 May 2022 on a pilot regime for market infrastructures based on distributed ledger technology, and amending Regulations (EU) No 600/2014 and (EU) No 909/2014 and Directive 2014/65/EU (OJ L 151, 2.6.2022, p. 1), http://data.europa.eu/eli/reg/2022/858/oj |
| Text proposed by the Commission | Amendment |
|---|---|
| (7a) The extension of settlement finality protection to systems using distributed ledger technology should be based on technological neutrality. Equivalent activities should receive equivalent settlement finality protection irrespective of the technology used, provided that the applicable conditions under this Regulation and under relevant Union sectoral legislation are met. Such protection should not be understood as creating a parallel regulatory regime for DLT-based infrastructures or as affecting the application of Regulation (EU) No 600/2014, Regulation (EU) No 909/2014, Regulation (EU) 2022/858 or Directive 2014/65/EU, as applicable. |
| Text proposed by the Commission | Amendment |
|---|---|
| (12) Member States should be able to apply the protections provided to Union systems to entities established on their territory that participate directly in third-country systems and to collateral security provided in connection with participation in such third-country systems. In order to remedy the unlevel playing field regarding participation of Union entities in third-country systems stemming from the different national regimes developed by Member States to extend the protections of Directive 98/96/EC, a harmonised regime for registration by Member States of third-country systems should be laid down. It should be based on a formalised and harmonised procedure that ensures the application of clear standards and that streamlines access conditions for all Union entities participating in a given third-country system. Registration of third-country systems by Member States should be done by the Member State in which an entity participating in such system is established. That may, however, result in several Member States registering the same third-country arrangement if members are established in several Member States. To prevent any unlevel-playing field for entities established in different Member States, the registration of such systems should be done in a coordinated and convergent way and be facilitated by ESMA, EBA and the ESCB. | (12) Union entities participating directly in third-country systems, and collateral security provided in connection with such participation, should benefit from settlement finality protections equivalent to those granted to participants in Union systems. National regimes for extending the protections of Directive 98/26/EC to participants in third-country systems have diverged significantly, creating an unlevel playing field between Union entities depending on their Member State of establishment and giving rise to a risk of forum-shopping. To remedy this, third-country systems should be registered through a single, harmonised procedure conducted directly by ESMA, ensuring the uniform application of clear standards and consistent access conditions for all Union entities participating in a given third-country system, irrespective of the Member State in which they are established. |
Reflects the exclusive ESMA registration competence for third-country systems. Removes the forum-shopping risk inherent in parallel national registration and anchors protection to participant establishment rather than a registering Member State.
| Text proposed by the Commission | Amendment |
|---|---|
| (14) Settlement should be considered final when the parties to the contract underlying the settlement have fully discharged their obligations towards the other party in an unconditional and irrevocable manner. The moment a transfer order enters a system and the moment of irrevocability of a transfer order are important moments for the application of insolvency law to that transfer order. To ensure the highest possible degree of consistency regarding settlement finality protection across systems, as well as to facilitate cross-border activity in the single market, it is necessary to lay down principles to be used for the determination of those moments for all types of systems. At the same time, those principles should allow for the possibility to develop regulatory technical standards to tailor those principles to the specific characteristics of each system while taking into account the existence of different types of systems, the different technologies used and the mechanics of each system. Systems should include, where they exist, those specific and tailored moments of settlement finality in their rules in a clear manner. | (14) Settlement should be considered final when the parties to the contract underlying the settlement have fully discharged their obligations towards the other party in an unconditional and irrevocable manner. The moment a transfer order enters a system and the moment of irrevocability of a transfer order are important moments for the application of insolvency law to that transfer order. To ensure the highest possible degree of consistency regarding settlement finality protection across systems, as well as to facilitate cross-border activity in the single market, it is necessary to lay down principles to be used for the determination of those moments for all types of systems. At the same time, those principles should allow for the possibility to develop regulatory technical standards to tailor those principles to the specific characteristics of each system while taking into account the existence of different types of systems, the different technologies used or which may be developed, and the mechanics of each system. Systems should include, where they exist, those specific and tailored moments of settlement finality in their rules in a clear manner. |
| Text proposed by the Commission | Amendment |
|---|---|
| (14a) While a higher degree of legal certainty and consistency is desirable, the determination of settlement finality moments should remain proportionate and operationally workable. Such determination should take due account of the nature, scale, complexity, systemic relevance and currency of the system concerned, the technology used, the applicable national insolvency and property law, and the role of national competent authorities and central banks. Harmonisation under this Regulation should not result in one-size-fits-all requirements where system-specific solutions are necessary to preserve legal certainty and financial stability. |
| Text proposed by the Commission | Amendment |
|---|---|
| (23) In view of the changes made in this Regulation, it is necessary to amend Directive 2002/47/EC of the European Parliament and of the Council7 to ensure consistency. Divergences in the scope of this Regulation and Directive 2002/47/EC would cause legal uncertainty and conflicting application, in particular in relation to instruments issued on DLT, as such instruments would be recognised as potential collateral under this Regulation but not necessarily under Directive 2002/47/EC. | (23) In view of the changes made in this Regulation, it is necessary to amend Directive 2002/47/EC of the European Parliament and of the Council7 to ensure consistency. Divergences in the scope of this Regulation and Directive 2002/47/EC would cause legal uncertainty and conflicting application, in particular in relation to instruments issued on DLT, as such instruments would be recognised as potential collateral under this Regulation but not necessarily under Directive 2002/47/EC. For the same reason, the definitions of ‘cash’ and ‘financial instruments’ in Directive 2002/47/EC should be aligned with the corresponding definitions in this Regulation, to avoid divergent interpretation of the same underlying concepts across the two instruments. |
| 7 Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43), http://data.europa.eu/eli/dir/2002/47/oj | 7 Directive 2002/47/EC of the European Parliament and of the Council of 6 June 2002 on financial collateral arrangements (OJ L 168, 27.6.2002, p. 43), http://data.europa.eu/eli/dir/2002/47/oj |
| Text proposed by the Commission | Amendment |
|---|---|
| (24) ESMA, EBA and the ESCB should play a central role in the application of this Regulation by ensuring consistent application of Union rules by national competent authorities. | (24) ESMA, EBA and the ESCB should support the consistent application of Union rules by national competent authorities. Their role should respect the responsibilities of the competent authorities of the Member States, in particular where the designation or registration of systems depends on the law governing the system, national insolvency law, property law or the specific operation of central bank settlement arrangements. |
| Text proposed by the Commission | Amendment |
|---|---|
| (25) The Commission should be empowered to adopt regulatory technical standards developed by ESMA and EBA with regard to further specifying the following: the information to be provided in an application for designation; the conditions for designation; the information to be provided in an application for registration; the moment of entry of a transfer order into a system not operated by a CSD, including DLT-based systems; the moment of irrevocability of a transfer order entered into a system not operated by a CSD, including DLT-based systems; and the moment of final settlement in systems not operated by a CSD, including DLT-based systems. The Commission should adopt those regulatory technical standards by means of delegated acts pursuant to Article 290 of the Treaty on the Functioning of the European Union (TFEU) and in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council8 and with Articles 10 to 14 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council9 | (25) The Commission should be empowered to adopt regulatory technical standards developed by ESMA and EBA with regard to further specifying the following: the information to be provided in an application for designation; the information to be provided in an application for registration; the moment of entry of a transfer order into a system not operated by a CSD, including DLT-based systems; the moment of irrevocability of a transfer order entered into a system not operated by a CSD, including DLT-based systems; and the moment of final settlement in systems not operated by a CSD, including DLT-based systems. The Commission should adopt those regulatory technical standards by means of delegated acts pursuant to Article 290 of the Treaty on the Functioning of the European Union (TFEU) and in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council8 and with Articles 10 to 14 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council9 |
| 8 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84), http://data.europa.eu/eli/reg/2010/1095/oj. | 8 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84), http://data.europa.eu/eli/reg/2010/1095/oj. |
| 9 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12), http://data.europa.eu/eli/reg/2010/1093/oj. | 9 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12), http://data.europa.eu/eli/reg/2010/1093/oj. |
Consequential on the deletion of the Article 5(2) and 5(3) RTS mandates. CSDs and CCPs already meet designation conditions under CSDR and EMIR; further Level 2 specification would duplicate existing supervision.
| Text proposed by the Commission | Amendment |
|---|---|
| (28) Systems which were designated under Directive 98/26/EC, and third-country systems to which Member States extended the protections of that Directive prior to the date of entry into force of this Regulation, should benefit from some transitional measures in order to provide sufficient time for Member States to designate or register those systems, as applicable, in accordance with the conditions set out in this Regulation. The application of the designation and registration requirements for those systems should therefore be deferred. | (28) Systems which were designated under Directive 98/26/EC, and third-country systems to which Member States extended the protections of that Directive prior to the date of entry into force of this Regulation, should benefit from some transitional measures in order to provide sufficient time for Member States to designate or register those systems, as applicable, in accordance with the conditions set out in this Regulation. The application of the designation and registration requirements for those systems should therefore be deferred. In particular, systems operated by a CSD authorised under Regulation (EU) No 909/2014 or a CCP authorised under Regulation (EU) No 648/2012 have already been assessed under sectoral legislation and remain fully supervised under that legislation. Such systems should be deemed to be designated under this Regulation without a new application, in order to avoid re-examining settled facts and to preserve continuity of supervision. A deferred date of application of twelve months from the date of entry into force should in addition apply to this Regulation as a whole, to give system operators sufficient time to update their rules, contracts and legal opinions in an orderly manner. |
| Text proposed by the Commission | Amendment |
|---|---|
| This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable institutions established in those Member States, which participate in those third-country systems, to benefit from the extension of the insolvency protection provided for in Articles 17, 19, 22(1), 23, 24 and 25(1) to transfer orders entered into in such third-country systems. | This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable their participant institutions established in those Member States and those third country systems and their operators when dealing with those participants to benefit from the extension of the insolvency protection provided for in Articles 17, 19, 22(1), 23, 24 and 25(1) to transfer orders entered into in such third-country systems. |
| Text proposed by the Commission | Amendment |
|---|---|
| This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable institutions established in those Member States, which participate in those third-country systems, to benefit from the extension of the insolvency protection provided for in Articles 17, 19, 22(1), 23, 24 and 25(1) to transfer orders entered into in such third-country systems. | This Regulation also lays down requirements for the registration of third-country systems in order to enable their participants and those third-country systems and their operators when dealing with those participants to benefit from the insolvency protection provided for in Articles 17, 18(1), 19, 21(1), 22(1), 23, 24 and 25(1). |
The amendment aims at protecting the participants of third-country systems from insolvency similar to designated EU systems and their system operators. To be read in conjunction to the other amendments related to Article 1(2).
| Text proposed by the Commission | Amendment |
|---|---|
| This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable institutions established in those Member States, which participate in those third-country systems, to benefit from the extension of the insolvency protection provided for in Articles 17, 19, 22(1), 23, 24 and 25(1) to transfer orders entered into in such third-country systems. | This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable their participants established in those Member States and those third-country systems to benefit from the extension of the insolvency protection provided for in Articles 17, 18(1), 19, 21(1), 22(1), 23, 24 and 25(1). |
| Text proposed by the Commission | Amendment |
|---|---|
| This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable institutions established in those Member States, which participate in those third-country systems, to benefit from the extension of the insolvency protection provided for in Articles 17, 19, 22(1), 23, 24 and 25(1) to transfer orders entered into in such third-country systems. | This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable entities established in those Member States, which participate in those third-country systems, to benefit from the extension of the insolvency protection provided for in Articles 17, 19, 22(1), 23, 24 and 25(1) to transfer orders entered into in such third-country systems. |
| Text proposed by the Commission | Amendment |
|---|---|
| This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable institutions established in those Member States, which participate in those third-country systems, to benefit from the extension of the insolvency protection provided for in Articles 17, 19, 22(1), 23, 24 and 25(1) to transfer orders entered into in such third-country systems. | This Regulation also lays down requirements for the registration of third-country systems in one or several Member States in order to enable their participants established in those Member States and those third country systems and their operators when dealing with those participants to benefit from the insolvency protection provided for in Articles 17, 18(1), 19, 21(1), 22(1), 23, 24 and 25(1). |
| Text proposed by the Commission | Amendment |
|---|---|
| In the case of an insolvency of a member of such a system, transfer orders entered by that member shall be protected where both the following conditions are met: | In the case of an insolvency of a person participating in such a system, the insolvency protection provided for in Articles 17, 18(1), 19, 21(1), 22(1), 23, 24 and 25(1) shall apply where both the following conditions are met: |
The amendment aims at protecting the participants of third-country systems from insolvency similar to designated EU systems and their system operators. To be read in conjunction to the other amendments related to Article 1 (2).
| Text proposed by the Commission | Amendment |
|---|---|
| In the case of an insolvency of a member of such a system, transfer orders entered by that member shall be protected where both the following conditions are met: | In the case of an insolvency of a participant of such a system, transfer orders entered by that participant shall be protected where both the following conditions are met: |
| Text proposed by the Commission | Amendment |
|---|---|
| In the case of an insolvency of a member of such a system, transfer orders entered by that member shall be protected where both the following conditions are met: | In the case of an insolvency of a participant in such a system, that insolvency protection shall apply where both the following conditions are met: |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the member participates in a registered system as defined in Article 2(1), point (9); | (a) the system is a registered system as defined in Article 2(1), point (9); |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the member participates in a registered system as defined in Article 2(1), point (9); | (a) the system is a registered system as defined in Article 2(1), point (9); |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the member participates in a registered system as defined in Article 2(1), point (9); | (a) the system is a registered system as defined in Article 2(1), point (9); |
The amendment aims at protecting the participants of third-country systems from insolvency similar to designated EU systems and their system operators. To be read in conjunction to the other amendments related to Article 1 (2).
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the member is an institution as defined in Article 2(1), point (10)(a)(i) to (iv) and (b), established in the Member State which has registered that system under Article 12. | (b) the person is a participant as defined in Article 2(1), point (15)(b), established in the Union. |
The amendment aims at protecting the participants of third-country systems from insolvency similar to designated EU systems and their system operators. To be read in conjunction to the other amendments related to Article 1 (2).
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the member is an institution as defined in Article 2(1), point (10)(a)(i) to (iv) and (b), established in the Member State which has registered that system under Article 12. | (b) the participant is established in the Member State which has registered that system under Article 12. |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the member is an institution as defined in Article 2(1), point (10)(a)(i) to (iv) and (b), established in the Member State which has registered that system under Article 12. | (b) the participant is established in the Member State which has registered that system under Article 12. |
| Text proposed by the Commission | Amendment |
|---|---|
| (3) ‘settlement’ means settlement as defined in Article 2(1), point (7), of Regulation (EU) No 909/2014 of the European Parliament and of the Council11; | (3) ‘settlement’ means, as regards securities settlement, settlement as defined in Article 2(1), point (7), of Regulation (EU) No 909/2014 of the European Parliament and of the Council11, and, as regards payment settlement, the completion of transfers of funds with the aim of discharging payment obligations of the parties; |
| 11 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1), http://data.europa.eu/eli/reg/2014/909/oj. | 11 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1), http://data.europa.eu/eli/reg/2014/909/oj. |
The Commission definition covers only securities settlement, borrowed wholesale from CSDR, leaving payment settlement undefined. Payment systems, including TARGET, would as a result fall outside the Regulation's core protection for want of a matching definition. The amendment closes that gap by adding a payment-settlement limb, aligning the definition with the Regulation's stated scope and the legal certainty the SFR is meant to deliver.
| Text proposed by the Commission | Amendment |
|---|---|
| (3) ‘settlement’ means settlement as defined in Article 2(1), point (7), of Regulation (EU) No 909/2014 of the European Parliament and of the Council11; | (3) ‘settlement’ means, as regards securities settlement, settlement as defined in Article 2(1), point (7), of Regulation (EU) No 909/2014 of the European Parliament and of the Council11, and as regards payment settlement, the completion of transfers of funds with the aim of discharging payment obligations of the parties; |
| 11 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1), http://data.europa.eu/eli/reg/2014/909/oj. | 11 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1), http://data.europa.eu/eli/reg/2014/909/oj. |
| Text proposed by the Commission | Amendment |
|---|---|
| (3) ‘settlement’ means settlement as defined in Article 2(1), point (7), of Regulation (EU) No 909/2014 of the European Parliament and of the Council11 ; | (3) ‘settlement’ means the completion, in accordance with the rules of a system, of the discharge of the obligations arising from one or more transfer orders through the transfer or recording of funds, financial instruments or any other rights or obligations capable of being processed by that system; |
| 11 Regulation (EU) No 909/2014 of the European Parliament and of the Council of 23 July 2014 on improving securities settlement in the European Union and on central securities depositories and amending Directives 98/26/EC and 2014/65/EU and Regulation (EU) No 236/2012 (OJ L 257, 28.8.2014, p. 1), http://data.europa.eu/eli/reg/2014/909/oj. |
| Text proposed by the Commission | Amendment |
|---|---|
| (3a) ‘final settlement’ has the meaning specified in Article 21(1); |
| Text proposed by the Commission | Amendment |
|---|---|
| (5) ‘securities settlement system’ means a system whose activity consists of the settlement of transfer orders; | (5) ‘securities settlement system’ means a system whose activity consists of the settlement of transfer orders, where at least one of the transfer orders settled for each transaction is an instruction as referred to in point (20)(b) of this paragraph; |
| Text proposed by the Commission | Amendment |
|---|---|
| (12a) ‘DLT settlement system’ or ‘DLT SS’ means a DLT settlement system as defined in Article 2, point (7) of Regulation (EU) 2022/858; |
| Text proposed by the Commission | Amendment |
|---|---|
| (12b) ‘DLT trading and settlement system’ or ‘DLT TSS’ means a DLT trading and settlement system as defined in Article 2, point (10) of Regulation (EU) 2022/858; |
| Text proposed by the Commission | Amendment |
|---|---|
| (17) ‘indirect participant’ means any of the entities listed in point (15)(a)(i) to (v) that has a contractual relationship with a participant in a designated system executing transfer orders which enables the entity to pass transfer orders through the designated system; | (17) ‘indirect participant’ means any of the entities listed in point (15)(a)(i) to (v) that has a contractual relationship with a participant in a designated system or registered third-country system executing transfer orders which enables the entity to pass transfer orders through the designated system; |
| Text proposed by the Commission | Amendment |
|---|---|
| (17) ‘indirect participant’ means any of the entities listed in point (15)(a)(i) to (v) that has a contractual relationship with a participant in a designated system executing transfer orders which enables the entity to pass transfer orders through the designated system; | (17) ‘indirect participant’ means any entity that has a contractual relationship with a participant in a designated system or registered system executing transfer orders which enables the entity to pass transfer orders through the designated system or registered system; |
| Text proposed by the Commission | Amendment |
|---|---|
| (21) ‘funds’ means funds as defined in Article 3, point (30), of [Regulation on payment services in the internal market (EU) [PSR]18 ; | (21) ‘funds’ means central bank money, commercial bank money, and electronic money as defined in Article 2, point (2), of Directive 2009/110/EC; for a registered system, ‘funds’ also includes electronic money issued by a third-country entity not authorised under that Directive, and e-money tokens as defined in Article 3(1), point (7), of Regulation (EU) 2023/1114 , where issued by such an entity; |
| 18 Proposal for a Regulation of the European Parliament and of the Council on payment services in the internal market and amending Regulation (EU) No 1093/2010, COM (2023) 367 final, https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52023PC0367 |
The proposed reference to the future Payment Services Regulation covers only central bank money for retail use. This amendment broadens 'funds' to reflect the full range of money used in settlement, including commercial bank money and electronic money. For registered systems, it also captures third-country e-money and MiCAR e-money tokens, ensuring the Regulation keeps pace with tokenised settlement models.
| Text proposed by the Commission | Amendment |
|---|---|
| (27) ‘collateral’ means all realisable assets, including, without limitation, those financial instruments and funds, including those issued or recorded using distributed ledger technology, including in tokenised form, and financial collateral referred to in Article 1(4), point (a), of Directive 2002/47/EC, provided under a pledge, a title transfer arrangement, a repurchase or similar agreement, or otherwise, for the purpose of securing rights and obligations potentially arising in connection with or related to a system, or provided to central banks of the Member States or to the European Central Bank; | (27) ‘collateral’ means all realisable assets, including, without limitation, those financial instruments and funds, including those issued or recorded using distributed ledger technology, including in tokenised form, e-money tokens as defined in Article 3(1), point (7), of Regulation (EU) 2023/1114 and other tokenised cash, and financial collateral referred to in Article 1(4), point (a), of Directive 2002/47/EC, provided under a pledge, a title transfer arrangement, a repurchase or similar agreement, or otherwise, for the purpose of securing rights and obligations potentially arising in connection with or related to a system, or provided to central banks of the Member States or to the European Central Bank; |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the definition of transfer order laid down in paragraph 1, point (20), where necessary to ensure that new types of assets subject to settlement, clearing or payment in designated systems are covered by the protections provided in this Regulation; | (a) the definition of transfer order laid down in paragraph 1, point (20), where necessary to ensure that new types of assets subject to settlement, clearing or payment in designated systems, including crypto-assets as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114, are covered by the protections provided in this Regulation; |
Settlement in designated systems will increasingly involve tokenised money and crypto-assets regulated under MiCA. Clarifying that the empowerment covers those asset classes future-proofs the framework, supports innovation in Union market infrastructure and provides legal certainty without requiring a further legislative revision.
| Text proposed by the Commission | Amendment |
|---|---|
| A system operator referred to in paragraph 1 that, to a limited extent, offers the settlement, clearing or execution of instructions related to instruments other than those referred to in Article 2(1), point (20)(b), may request that the settlement finality rules set out in Articles 17 to 25 also apply in relation to such instruments. The designating authority may allow such instructions to be considered transfer orders when it considers that such a designation is warranted on grounds of systemic risk. | A system operator referred to in paragraph 1 that offers the settlement, clearing or execution of instructions related to instruments other than those referred to in Article 2(1), point (20)(b), may request that the settlement finality rules set out in Articles 17 to 25 also apply in relation to such instruments. The designating authority may allow such instructions to be considered transfer orders when it considers that such a designation is warranted on grounds of systemic risk. |
Eero Heinäluoma, César Luena, Jonás Fernández, Francisco Assis, Evelyn Regner, Aurore Lalucq, Nikos Papandreou
| Text proposed by the Commission | Amendment |
|---|---|
| 2. The designating authority of the Member State whose law governs the system may designate the system, where at least one of its participants has its head office in that Member State. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. A system operator that applies for designation of a system that it operates shall submit an application for designation addressed to the designating authority of the Member State whose law governs the system. | 1. A system operator that applies for designation of a system that it operates shall submit an application for designation addressed to the designating authority of the Member State whose law governs the system by uploading it to the central database in accordance with Article 26(3). |
Eero Heinäluoma, César Luena, Jonás Fernández, Francisco Assis, Evelyn Regner, Aurore Lalucq, Nikos Papandreou
| Text proposed by the Commission | Amendment |
|---|---|
| 1. A system operator that applies for designation of a system that it operates shall submit an application for designation addressed to the designating authority of the Member State whose law governs the system. | 1. A system operator that applies for designation of a system that it operates shall submit an application for designation addressed to the designating authority by uploading it to the central database in accordance with Article 26(3). |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. The application shall be immediately shared with all of the following: | 2. The designating authority shall immediately share the application with all of the following: |
| Text proposed by the Commission | Amendment |
|---|---|
| (a) the designating authority; | deleted |
Eero Heinäluoma, César Luena, Jonás Fernández, Francisco Assis, Evelyn Regner, Aurore Lalucq, Nikos Papandreou
| Text proposed by the Commission | Amendment |
|---|---|
| (d) EBA for systems operating transfer orders set out in Article 2(1), point (20)(a); | deleted |
Eero Heinäluoma, César Luena, Jonás Fernández, Francisco Assis, Evelyn Regner, Aurore Lalucq, Nikos Papandreou
| Text proposed by the Commission | Amendment |
|---|---|
| (e) The ESCB. | (e) The ECB and the national central bank of the Member State where the system operator is established. |
| Text proposed by the Commission | Amendment |
|---|---|
| Where the system operator has not responded to the questions or provided the requested information within the deadline set by the designating authority, the designating authority may decide to extend once the relevant assessment period by a maximum of 10 working days in total where, in its view, any of the questions or information is material for the assessment. The designating authority shall inform the system operator of the extension provided. The designating authority may take a decision on the application in the absence of the system operator’s response. | Where the system operator has not responded to the questions or provided the requested information within the deadline set by the designating authority, the designating authority may decide to extend once the relevant assessment period by a maximum of 10 working days in total. The designating authority shall inform the system operator of the extension provided. The designating authority may take a decision on the application in the absence of the system operator’s response. |
| Text proposed by the Commission | Amendment |
|---|---|
| Any question or request for supplementary information shall be necessary, proportionate, specific, reasoned and limited to information strictly necessary to assess compliance with the requirements of this Regulation. |
| Text proposed by the Commission | Amendment |
|---|---|
| The designating authority shall not request information that has already been submitted by the system operator, is available in the central database or is held by another competent authority, except where such information needs to be updated or where there are objective reasons preventing the use of the available information, and those reasons shall be communicated to the system operator. |
| Text proposed by the Commission | Amendment |
|---|---|
| (ma) where the system uses distributed ledger technology, the system operator is a central securities depository authorised under Regulation (EU) No 909/2014, a central counterparty authorised under Regulation (EU) No 648/2012, or a market operator or investment firm authorised to operate a trading venue under Regulation (EU) No 600/2014; |
This amendment ensures the Union's "tokenised plumbing" remains within a strict regulatory perimeter by restricting DLT system designation to authorized financial market infrastructures (FMIs) . It prevents innovation from bypassing the high standards of resilience and stability required for systemic Union infrastructure .
| Text proposed by the Commission | Amendment |
|---|---|
| (mb) the governance and validation mechanisms of the DLT-based system are subject to the effective jurisdiction of a Member State, ensuring that the moments of entry, irrevocability, and finality are clearly defined and enforceable under Union law. |
By subjecting DLT governance and validation processes to the effective jurisdiction of a Member State, this requirement ensures that critical legal moments—such as irrevocability and finality—are fully enforceable under Union law . It prevents unregulated or "offshore" validation mechanisms from benefiting from the Union's settlement finality protections .
| Text proposed by the Commission | Amendment |
|---|---|
| 1a. Where the system operator is a CSD authorised under Article 16 of Regulation (EU) No 909/2014 or a CCP authorised under Article 14 of Regulation (EU) No 648/2012, the conditions laid down in paragraph 1, points (g) to (m), shall be deemed to be fulfilled. |
CSDs and CCPs already demonstrate sound management, financial resources and risk controls under CSDR and EMIR. Reassessing the same elements at designation duplicates supervision and adds cost without any gain in legal certainty. The deeming rule keeps designation focused on what settlement finality genuinely requires and delivers the simplification the package promises.
| Text proposed by the Commission | Amendment |
|---|---|
| 2. ESMA may, in close cooperation with the ESCB, develop draft regulatory technical standards to further specify the conditions referred to in paragraph 1 for securities settlement systems and clearing systems. | deleted |
| The Commission shall be empowered to adopt delegated acts to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council20 . | |
| 20 Regulation (EU) No 1095/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Securities and Markets Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/77/EC (OJ L 331, 15.12.2010, p. 84), http://data.europa.eu/eli/reg/2010/1095/oj. |
The designation conditions overlap with requirements under EMIR, CSDR and the payment system oversight framework, where the ECB holds regulatory competence under Article 22 of the ESCB Statute. Further Level 2 specification would deepen that overlap and add compliance burden without improving protection. Removing the mandates keeps the framework lean, in line with the ECB Opinion.
| Text proposed by the Commission | Amendment |
|---|---|
| 3. EBA may, in close cooperation with the ESCB, develop draft regulatory technical standards to further specify the conditions referred to in paragraph 1 for payment systems. | deleted |
| The Commission shall be empowered to adopt delegated acts to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/201021 . | |
| 21 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12), http://data.europa.eu/eli/reg/2010/1093/oj. |
The designation conditions overlap with requirements under EMIR, CSDR and the payment system oversight framework, where the ECB holds regulatory competence under Article 22 of the ESCB Statute. Further Level 2 specification would deepen that overlap and add compliance burden without improving protection. Removing the mandates keeps the framework lean, in line with the ECB Opinion.
| Text proposed by the Commission | Amendment |
|---|---|
| Article 5a | |
| Additional safeguards for DLT-based systems | |
| Where a DLT-based system poses specific operational, cyber, or liquidity risks to the Union’s financial stability, ESMA and the relevant national competent authorities shall have the power to impose additional safeguards. Such safeguards may include, but are not limited to the following: | |
| (a) restrictions on the types of assets eligible for settlement; | |
| (b) minimum requirements for interoperability with legacy settlement systems; | |
| (c) mandatory capital surcharges to cover cyber-risk vulnerabilities specific to the DLT consensus mechanism; and | |
| (d) adjustments to the settlement cycle to ensure alignment with liquidity management requirements. |
While the SFR facilitates innovation, DLT models can involve "probabilistic" finality or "layered" models that may not meet absolute legal certainty. This amendment provides "regulatory teeth" to ensure that if a DLT system becomes systemic, supervisors can intervene with specific operational limits to prevent cyber-contagion across the Savings and Investments Union (SIU).
| Text proposed by the Commission | Amendment |
|---|---|
| ESMA shall not publish information that is confidential, commercially sensitive or security-sensitive, including information that could compromise the operational resilience or cybersecurity of a system or its participants. |
| Text proposed by the Commission | Amendment |
|---|---|
| A system operator that is a CSD complying with Article 33 of Regulation (EU) No 909/2014 or a CCP complying with Article 37 of Regulation (EU) No 648/2012 shall be deemed to comply with this paragraph. |
CSDR and EMIR already impose detailed, supervised participation and access requirements on CSDs and CCPs. A parallel SFR obligation would regulate the same conduct twice. The deeming provision avoids double regulation while leaving the participation requirements fully applicable to system operators not covered by sectoral legislation
| Text proposed by the Commission | Amendment |
|---|---|
| Notification of a change shall not be subject to prior authorisation or lead to a full reassessment of the designation, except where this Regulation expressly provides for it or the change substantially alters the nature or functioning of the system. |
| Text proposed by the Commission | Amendment |
|---|---|
| For the purposes of this paragraph, only a change that is reasonably likely to materially affect fulfilment of the conditions for designation, settlement finality moments or the systemic risk profile of the system shall be considered substantial. |
| Text proposed by the Commission | Amendment |
|---|---|
| 3. A designating authority shall examine whether a system remains in compliance with the conditions under which the designation was granted when requested to do so by ESMA and the ESCB, for securities settlement systems and clearing systems, or EBA and the ESCB, for payment systems. | 3. A designating authority shall examine whether a system remains in compliance with the conditions under which the designation was granted when requested to do so by ESMA and the ESCB, for securities settlement systems and clearing systems, or EBA and the ESCB, for payment systems. Such request shall be reasoned and shall identify the specific concerns relating to the system’s compliance with the conditions under which the designation was granted. |
| Text proposed by the Commission | Amendment |
|---|---|
| Each of the registering authorities in any of the Member States in which a member participating in a third-country system is established may decide to register such a third-country system in accordance with the procedure set out in Article 13, provided that the member is an institution as defined in Article 2(1), points (10)(a)(i) to (iv), or Article 2(1), point (10)(b). Each of those registering authorities shall assess the application for registration of the third-country system. | ESMA shall have the power to register a third-country system in accordance with the procedure set out in Article 13. |
| (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.) |
In the interest of a harmonised procedure and to avoid forum-shopping, ESMA should be exclusively competent to register all third-country systems under the SFR.
| Text proposed by the Commission | Amendment |
|---|---|
| Each of the registering authorities in any of the Member States in which a member participating in a third-country system is established may decide to register such a third-country system in accordance with the procedure set out in Article 13, provided that the member is an institution as defined in Article 2(1), points (10)(a)(i) to (iv), or Article 2(1), point (10)(b). Each of those registering authorities shall assess the application for registration of the third-country system. | A registering authority in a Member State may decide to register such a third-country system in accordance with the procedure set out in Article 13, provided that a participant in that third-country system is established in that Member State or the application for registration by the system operator of that third-country system indicates that the system operator wishes to consider a request by a person established in that Member State for admission as a participant in the third-country system. Each registering authority to which a system operator of a third-country system applies for registration shall assess the application for registration of the third-country system. |
| Text proposed by the Commission | Amendment |
|---|---|
| A Member State may, in exceptional circumstances and for the purposes of this Regulation, consider an indirect participant as a participant in a registered system where the indirect participant is known to the system operator and the participants of the registered system, and where that is warranted on the grounds of systemic risk. That possibility shall, however, not limit the responsibility of the participant. |
| Text proposed by the Commission | Amendment |
|---|---|
| Within 15 working days from the receipt of the application, registering authorities may inform ESMA that they consider that additional documents or information should be requested. ESMA shall consider the request and inform the requesting registering authority whether it will act upon it. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6. After having notified the third-country system operator that the application is accepted, each registering authority that accepted the application shall conduct an assessment of the third-country system operator’s and the system’s compliance with the conditions for registration laid down in Article 14 within 80 working days of the notification set out in paragraph 5 (‘the assessment period’). | 6. After having notified the third-country system operator that the application is accepted, each registering authority that accepted the application shall, in close cooperation with the ESCB and the registering authorities referred to in Article 12, conduct an assessment of the third-country system operator’s and the system’s compliance with the conditions for registration laid down in Article 14 within 80 working days of the notification set out in paragraph 5 (‘the assessment period’). |
| Text proposed by the Commission | Amendment |
|---|---|
| During the assessment period, any registering authority may submit questions to, or request complementary information from, the third-country system operator. | During the assessment period, any registering authority may submit questions to, or request complementary information from, the third-country system operator. Any registering authority may request that ESMA submit questions to, or request complementary information from, the third-country system operator. ESMA shall consider the request and inform the requesting registering authority whether it will act upon it. |
| Text proposed by the Commission | Amendment |
|---|---|
| A registering authority may register a third-country system in its Member State only where all of the following conditions are met: | ESMA may register a third-country system only where all of the following conditions are met: |
In the interest of a harmonised procedure and to avoid forum-shopping, ESMA should be exclusively competent to register all third-country systems under the SFR. See corresponding amendment to Article 12.
| Text proposed by the Commission | Amendment |
|---|---|
| (d) the system identifies clearly in its common rules and standardised procedures all of the following moments: | (d) the system identifies clearly in its common rules and standardised procedures the following finality moments or, where appropriate, equivalent moments under the law and rules governing the system: |
| Text proposed by the Commission | Amendment |
|---|---|
| (f) the system complies in all material respects with global principles of financial market infrastructures. | (f) the system complies in all material respects with the internationally agreed CPSS-IOSCO principles for financial market infrastructures. |
| Text proposed by the Commission | Amendment |
|---|---|
| ESMA shall publish in a standardised format the information referred to in paragraph 2 and any updates thereto in accordance with paragraph 3, point (b), on its website, without undue delay and no later than 2 working days after receipt of that information ESMA shall specify the date when updates to the information on its website were made and which information was updated. | ESMA shall publish in a standardised format the information referred to in paragraph 2 and any updates thereto in accordance with paragraph 3, point (b), on its website, without undue delay and no later than 2 working days after receipt of that information ESMA shall specify the date when updates to the information on its website were made and which information was updated. |
| ESMA shall not publish information that is confidential, commercially sensitive or security-sensitive, including information that could compromise the operational resilience or cybersecurity of a registered system or its Union participants. |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the third-country system operator or the system it operates, as applicable, no longer complies with the conditions set out in Article 14; | (b) the third-country system operator or the system it operates, as applicable, no longer complies with the conditions set out in Article 14 and the system operator has not taken the remedial actions requested by the registering authority within a set timeframe; |
| Text proposed by the Commission | Amendment |
|---|---|
| (b) the third-country system operator or the system it operates, as applicable, no longer complies with the conditions set out in Article 14; | (b) the third-country system operator or the system it operates, as applicable, no longer complies with the conditions set out in Article 14 and the system operator has not taken the remedial actions requested by the coordinating authority within a set timeframe; |
| Text proposed by the Commission | Amendment |
|---|---|
| Where a registering authority assesses that a third-country system operator or the system it operated no longer complies with the conditions set out in Article 14, it shall inform ESMA. ESMA shall consider the registering authority’s assessment and, as needed, request that the system operator take remedial action within a set timeframe. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The moment of entry of a transfer order into a designated system shall be determined by the common rules and standardised procedures of that system. Such determination shall take account of the receipt and registration of the transfer order by the system. | 1. The moment of entry of a transfer order into a designated system shall be determined by the common rules and standardised procedures of that system. If the rules and standardised procedures of a registered system make provision for the moment of entry of a transfer order, the moment of entry of a transfer order into that registered system shall be determined by those rules and procedures for the participants in that registered system established in Member States where the third-country system is registered, in accordance with the law governing that registered system. Such determination shall take account of the receipt and registration of the transfer order by the system. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The moment of entry of a transfer order into a designated system shall be determined by the common rules and standardised procedures of that system. Such determination shall take account of the receipt and registration of the transfer order by the system. | 1. The moment of entry of a transfer order into a designated system or registered system shall be determined by the common rules and standardised procedures of that system. Such determination shall take account of the receipt and registration of the transfer order by the system. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. The opening of insolvency proceedings against a participant or a system operator of an interoperable system shall not prevent funds or financial instruments available on the settlement account or on accounts holding collateral, including default fund contributions such as contributions to a pre-funded default fund held by a CCP in accordance with Article 42 of Regulation No 648/2012 and margins as referred to in Article 41 of Regulation No 648/2012, where applicable, of that participant or system operator from being used to fulfil that participant’s obligations in the designated system, or registered system in the Member State where the participant is established, or in an interoperability arrangement on the business day of the opening of the insolvency proceedings. | 1. The opening of insolvency proceedings against a participant or a system operator of an interoperable system shall not prevent funds, financial instruments, or other instruments available on the settlement account or on accounts holding collateral, including default fund contributions such as contributions to a pre-funded default fund held by a CCP in accordance with Article 42 of Regulation No 648/2012 and margins as referred to in Article 41 of Regulation No 648/2012, where applicable, of that participant or system operator from being used to fulfil that participant’s obligations in the designated system, or registered system in the Member State where the participant is established, or in an interoperability arrangement on the business day of the opening of the insolvency proceedings. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Each designated system shall determine the specific moment where, in its system, a participant or a third party cannot revoke a transfer order. Such determination shall take account of the moment when a transfer order that entered into the system was confirmed by the system and where the processing of the order could not be reversed. | 1. Each designated system and registered system shall determine the specific moment where, in its system, a participant or a third party cannot revoke a transfer order. Such determination shall take account of the moment when a transfer order that entered into the system was confirmed by the system and where the processing of the order could not be reversed. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. In the case of interoperable systems, each system shall determine in its own common rules and standardised procedures the moment of irrevocability, while ensuring, to the extent possible, that the common rules and standardised procedures of all interoperable systems concerned are coordinated. Unless expressly provided for by the common rules and standardised procedures of all the systems that are party to an interoperability arrangement, one system's rules on the moment of irrevocability shall not be affected by any rules of the other systems with which it is interoperable. | 2. In the case of interoperable systems, each system shall determine in its own common rules and standardised procedures the moment of irrevocability, while ensuring, to the extent possible, that the common rules and standardised procedures of all interoperable systems concerned are coordinated. Unless expressly provided for by the common rules and standardised procedures of all the systems that are party to an interoperability arrangement, one system's rules on the moment of irrevocability shall not be affected by any rules of the other systems with which it is interoperable. Any coordination under this paragraph shall preserve the legal certainty of each system and shall take account of the applicable law governing that system. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Settlement shall be final when the discharge of the obligations of the parties to a transaction is completed in an unconditional and irrevocable manner as determined by the common rules and standardised procedures of each designated system, in accordance with the applicable law for transfer of ownership and other rights. A designated system that is based on DLT shall implement mechanisms guaranteeing deterministic and legally enforceable finality moments. | 1. Settlement shall be final when the transfer of funds, financial instruments or other instruments is irrevocable and unconditional or the discharge of obligations by the system or a participant in accordance with the terms of a transaction is completed in an unconditional and irrevocable manner as determined by the common rules and standardised procedures of each designated system or a registered system in relation to participants established in Member States. A designated system that is based on DLT shall implement technical mechanisms ensuring that settlement is deterministic and irreversible, so that the legally enforceable finality moments defined in its common rules and standardised procedures can be identified with certainty. |
This amendment clarifies that settlement finality covers both the irrevocable and unconditional transfer of assets and the discharge of obligations, extending coverage explicitly to registered third-country systems. For DLT-based systems, it replaces a general obligation with a concrete technical standard, requiring mechanisms that ensure deterministic and irreversible settlement so that finality moments are identifiable with certainty under the system's own rules.
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Settlement shall be final when the discharge of the obligations of the parties to a transaction is completed in an unconditional and irrevocable manner as determined by the common rules and standardised procedures of each designated system, in accordance with the applicable law for transfer of ownership and other rights. A designated system that is based on DLT shall implement mechanisms guaranteeing deterministic and legally enforceable finality moments. | 1. Settlement shall be final when the transfer of funds, financial instruments or other instruments is irrevocable and unconditional or the discharge of the obligations of the parties to a transaction is completed in an unconditional and irrevocable manner as determined by the common rules and standardised procedures of each designated system or of a registered system in relation to participants established in Member States in which the third-country system is registered. A designated system that is based on DLT shall implement mechanisms guaranteeing deterministic and legally enforceable finality moments. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Settlement shall be final when the discharge of the obligations of the parties to a transaction is completed in an unconditional and irrevocable manner as determined by the common rules and standardised procedures of each designated system, in accordance with the applicable law for transfer of ownership and other rights. A designated system that is based on DLT shall implement mechanisms guaranteeing deterministic and legally enforceable finality moments. | 1. Settlement shall be final when the discharge of the obligations of the parties to a transaction is completed in an unconditional and irrevocable manner, in accordance with the applicable law for transfer of ownership and other rights as referred to in the common rules and standardised procedures of each designated system. A designated system that is based on DLT shall implement technical mechanisms guaranteeing deterministic and irreversible settlement, to ensure that the finality moments in accordance with the applicable law for transfer of ownership and other rights can be identified with certainty. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Settlement shall be final when the discharge of the obligations of the parties to a transaction is completed in an unconditional and irrevocable manner as determined by the common rules and standardised procedures of each designated system, in accordance with the applicable law for transfer of ownership and other rights. A designated system that is based on DLT shall implement mechanisms guaranteeing deterministic and legally enforceable finality moments. | 1. Settlement shall be final when the discharge of the obligations of the parties to a transaction is completed in an unconditional and irrevocable manner as determined by the common rules and standardised procedures of each designated system or of each registered system in relation to participants established in Member States in which the third-country system is registered. A designated system that is based on DLT shall implement mechanisms guaranteeing legally enforceable finality moments, which may include deterministic, probabilistic or layered finality models. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. In the case of interoperable systems, each system shall determine in its own common rules and standardised procedures the moment of final settlement. Each system operator shall ensure, to the extent possible, that the rules of all interoperable systems concerned are coordinated. Unless expressly provided for by the common rules and standardised procedures of all the systems that are party to an interoperability arrangement, one system's common rules and standardised procedures on the moment of final settlement shall not be affected by any common rules or standardised procedures of the other systems with which it is interoperable. | deleted |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. In the case of interoperable systems, each system shall determine in its own common rules and standardised procedures the moment of final settlement. Each system operator shall ensure, to the extent possible, that the rules of all interoperable systems concerned are coordinated. Unless expressly provided for by the common rules and standardised procedures of all the systems that are party to an interoperability arrangement, one system's common rules and standardised procedures on the moment of final settlement shall not be affected by any common rules or standardised procedures of the other systems with which it is interoperable. | 2. In the case of interoperable systems, each system shall determine in its own common rules and standardised procedures the moment of final settlement. Each system operator shall ensure, to the extent possible, that the rules of all interoperable systems concerned are coordinated. Unless expressly provided for by the common rules and standardised procedures of all the systems that are party to an interoperability arrangement, one system's common rules and standardised procedures on the moment of final settlement shall not be affected by any common rules or standardised procedures of the other systems with which it is interoperable. Any coordination under this paragraph shall preserve the legal certainty of each system and shall take account of the applicable law governing that system. |
| Text proposed by the Commission | Amendment |
|---|---|
| ESMA may, in close cooperation with the ESCB, for clearing and securities settlement systems not operated by a CSD, and taking into account the specificities of different types of systems, and the mechanics of those systems, develop draft regulatory technical standards to specify the rules for determining all of the following: | ESMA shall, by … [12 months from the date of entry into force of this Regulation], in close cooperation with the ESCB, for clearing and securities settlement systems not operated by a CSD, and taking into account the specificities of different types of systems, and the mechanics of those systems, develop draft regulatory technical standards to specify the rules for determining all of the following: |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) the moment of final settlement referred to in paragraph 1; | (e) the measures necessary to facilitate system operators’ compliance with the obligation to record the moment of final settlement referred to in paragraph 1; |
| Text proposed by the Commission | Amendment |
|---|---|
| EBA may, in close cooperation with the ESCB, and taking into account the specificities of different types of payments systems and the mechanics of the systems, develop draft regulatory technical standards to specify the rules for determining all of the following: | EBA shall, by … [12 months from the date of entry into force of this Regulation], in close cooperation with the ESCB, and taking into account the specificities of different types of payments systems and the mechanics of the systems, develop draft regulatory technical standards to specify the rules for determining all of the following: |
| Text proposed by the Commission | Amendment |
|---|---|
| (e) the moment of final settlement referred to in paragraph 1; | (e) the measures necessary to facilitate system operators’ compliance with the obligation to record the moment of final settlement referred to in paragraph 1; |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. For the purpose of this Regulation, the moment of opening of insolvency proceedings shall be the moment the judicial or administrative authority concerned hands down its decision. | 1. For the purpose of this Regulation, the moment of opening of insolvency proceedings shall be the moment the judicial or administrative authority concerned hands down its decision, namely the moment at which the decision on the opening of insolvency proceedings takes legal effect and becomes public as prescribed by the applicable national insolvency law. |
The amendment prevents uncertainty with respect to the definition of the relevant moment of an insolvency.
| Text proposed by the Commission | Amendment |
|---|---|
| The competent authority shall immediately communicate the decision to any designated system or registered system in which the participant subject to the insolvency proceedings participates. The systems shall take measures to protect the other participants in the system, where necessary. |
| Text proposed by the Commission | Amendment |
|---|---|
| In the event of insolvency proceedings being opened against a participant in a system, the rights and obligations arising from, or in connection with, the participation of that participant shall be determined by the law governing that system. | In the event of insolvency proceedings being opened against a participant in a designated system or in a registered system, the rights and obligations arising from, or in connection with, the participation of that participant shall be determined by the law governing that system. |
| Text proposed by the Commission | Amendment |
|---|---|
| Such collateral security may be realised for the satisfaction of those rights. | Such collateral security may be realised for the satisfaction of those rights. A system operator, a participant or an indirect participant shall be able to realise any collateral provided to them in connection with a designated system or registered system in the following manners and subject to the terms agreed in the agreement giving rise to such security collateral rights: |
| (a) for financial instruments, by sale or appropriation and by setting off their value against, or applying their value in discharge of, the obligations to which the collateral security relates; | |
| (b) for cash, by setting off the amount against or applying it in discharge of the obligations to which the collateral security relates; | |
| (c) for credit claims, by sale or appropriation and by setting off their value against, or applying their value in discharge of, the obligations to which the collateral security relates. |
| Text proposed by the Commission | Amendment |
|---|---|
| System operators, including for designated and registered systems as well as the registered recipients shall upload to the central database, in electronic format, all information and documents, including applications, decisions, recommendations, requests, information, questions, answers and notifications, referred to in this Regulation unless stated otherwise. | System operators, including for designated and registered systems as well as the registered recipients shall upload to the central database, in electronic format, all information and documents necessary for the performance of the duties provided for in this Regulation, including applications, decisions, recommendations, requests, information, questions, answers and notifications, referred to in this Regulation unless stated otherwise. The information and documents required shall be proportionate and shall avoid unnecessary duplication of information already available to the relevant competent authorities. |
| Text proposed by the Commission | Amendment |
|---|---|
| 4. ESMA shall ensure the database enables DLT recorded data, including on-chain data reading and access to such data. | 4. ESMA shall ensure that the central database can receive information concerning DLT-recorded data where such information is necessary for the performance of duties under this Regulation. The central database shall not require direct access to on-chain data unless such access is necessary, proportionate, technically feasible and subject to appropriate safeguards for confidentiality, cybersecurity and the protection of commercially sensitive information. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6a. The central database shall not create new reporting obligations of its own for system operators or participants. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6b. The competent authorities, ESMA, EBA and other registered recipients shall apply the ‘report once, use many times’ principle. They shall not request information or documentation that is already available in the central database, except where it needs to be updated for justified reasons. |
| Text proposed by the Commission | Amendment |
|---|---|
| 6c. From the date on which the central database becomes fully operational, the submission of information or documentation through that database shall replace any equivalent submission through national channels. Member States and competent authorities shall not require overlapping transmission, additional national formats or resubmission of information already available in the database. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. By way of derogation from Article 3, a system designated under Directive 98/26/EC prior to [OP insert date = entry into force of this Regulation] shall continue to be designated for the purposes of this Regulation until it is re-designated under that Article or until [OP insert date= 5 years after the entry into force of this Regulation], whichever is earlier. In the meantime, the Member State law on the designation of a system shall continue to apply. | 1. By way of derogation from Article 3, a system designated under Directive 98/26/EC prior to … [the date of entry into force of this Regulation] shall be considered as designated for the purposes of this Regulation: |
| (a) until the system is re-designated under that Article or until … [five years after the entry into force of this Regulation], whichever is earlier; or | |
| (b) if the system operator applies for designation of that system under Article 3 before … [five years from the entry into force of this Regulation] and the application is still pending on that date, until the system is re-designated under that Article, a decision has been made rejecting the application or the application is withdrawn. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. By way of derogation from Article 3, a system designated under Directive 98/26/EC prior to [OP insert date = entry into force of this Regulation] shall continue to be designated for the purposes of this Regulation until it is re-designated under that Article or until [OP insert date= 5 years after the entry into force of this Regulation], whichever is earlier. In the meantime, the Member State law on the designation of a system shall continue to apply. | 1. By way of derogation from Article 3, a system designated under Directive 98/26/EC prior to [OP insert date = entry into force of this Regulation] shall continue to be designated for the purposes of this Regulation until it is re-designated under that Article or until … [seven years after the entry into force of this Regulation], whichever is earlier. In the meantime, the Member State law on the designation of a system shall continue to apply. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1a. A system designated under Directive 98/26/EC prior to … [the date of entry into force of this Regulation] and operated by a CSD authorised under Regulation (EU) No 909/2014 or a CCP authorised under Regulation (EU) No 648/2012 shall be deemed to be designated in accordance with Article 3 from the date of application of this Regulation, without a new application being required. The system operator shall submit the information referred to in Article 6 to the central database by that date. |
Systems operated by authorised CSDs and CCPs have already been assessed under Directive 98/26/EC and remain fully supervised under CSDR and EMIR. Requiring a fresh designation re-examines settled facts, ties up supervisory resources and creates transitional legal risk. Deemed designation preserves continuity while maintaining full transparency through the central database.
| Text proposed by the Commission | Amendment |
|---|---|
| 2. By way of derogation from Article 12, a third-country system to which a Member State has extended the protections granted under Directive 98/26/EC prior to [OP insert date = entry into force of this Regulation] shall be considered as registered in that Member State for the purposes of this Regulation until it is registered in accordance with that Article in that same Member State or until [OP insert date = 5 years after the date of entry into force of this Regulation], whichever is earlier. | 2. By way of derogation from Article 12, a third-country system to which a Member State has extended one or more of the protections granted under Directive 98/26/EC or has applied similar protections prior to … [the date of entry into force of this Regulation] shall be considered as registered in that Member State for the purposes of this Regulation: |
| (a) until the system is registered in accordance with that Article in that same Member State or until … [five years after the entry into force of this Regulation], whichever is earlier; or | |
| (b) if the system operator applies for registration of the system under Article 12 in that same Member State before … [five years from the date of entry into force of this Regulation] and the application is still pending on that date, until the system is registered in accordance with that Article in that Member State, a decision has been made rejecting the application or the application has been withdrawn. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2. By way of derogation from Article 12, a third-country system to which a Member State has extended the protections granted under Directive 98/26/EC prior to [OP insert date = entry into force of this Regulation] shall be considered as registered in that Member State for the purposes of this Regulation until it is registered in accordance with that Article in that same Member State or until [OP insert date = 5 years after the date of entry into force of this Regulation], whichever is earlier. | 2. By way of derogation from Article 12, a third-country system to which a Member State has extended the protections granted under Directive 98/26/EC prior to [OP insert date = entry into force of this Regulation] shall be considered as registered in that Member State for the purposes of this Regulation until it is registered in accordance with that Article in that same Member State or until … [seven years after the date of entry into force of this Regulation], whichever is earlier. |
| Text proposed by the Commission | Amendment |
|---|---|
| 2a. Where the system operator of a system designated under Directive 98/26/EC prior to … [the date of entry into force of this Regulation] applies for redesignation of the system under Article 3, the designating authority shall ensure that the process is as streamlined as possible and that any information relating to the system or system operator already held by the designating authority is taken into account. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. By [OP insert date = 6 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. | 1. By [OP insert date = 6 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. The report shall in particular assess the impact of this Regulation on smaller capital markets, non-euro payment and securities settlement systems, administrative costs for competent authorities and system operators, and the proportionality of the requirements related to designation, registration and the central database. |
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Directive 98/26/EC is repealed with effect from [OP insert date = date of entry into force of this Regulation]. | 1. Directive 98/26/EC is repealed with effect from … [12 months from the date of entry into force of this Regulation]. |
A deferred application date gives Member States time to make the necessary adaptions and gives system operators time to update rules, contracts and legal opinions in an orderly way. Twelve months matches the ECB's recommended transition period and the precedent set for prior directive-to-regulation conversions in EU financial services law. To avoid any application gap, the date of repeal also needs to be adjusted by 12 months.
Eero Heinäluoma, César Luena, Jonás Fernández, Francisco Assis, Evelyn Regner, Aurore Lalucq, Nikos Papandreou
| Text proposed by the Commission | Amendment |
|---|---|
| 1. Directive 98/26/EC is repealed with effect from [OP insert date = date of entry into force of this Regulation]. | 1. Directive 98/26/EC is repealed with effect from … [12 months from date of entry into force of this Regulation]. |
| Present text | Amendment |
|---|---|
| (-a) in paragraph 1, point (d) is replaced by the following: | |
| (d) ‘cash’ means money credited to an account in any currency, or similar claims for the repayment of money, such as money market deposits; | "(d) ‘cash’ means money credited to an account in any currency, or similar claims for the repayment of money, such as money market deposits and funds as defined in Article 2(1), point 21, of the [Regulation on Settlement Finality];" |
The amendment aligns the definition of „cash“ with the respective definition of this term in the SFR in order to avoid inconsistencies.
| Present text | Amendment |
|---|---|
| (-aa)in paragraph 1 of Article 2, point (e) is replaced by the following: | |
| (e) ‘financial instruments’ means shares in companies and other securities equivalent to shares in companies and bonds and other forms of debt instruments if these are negotiable on the capital market, and any other securities which are normally dealt in and which give the right to acquire any such shares, bonds or other securities by subscription, purchase or exchange or which give rise to a cash settlement (excluding instruments of payment), including units in collective investment undertakings, money market instruments and claims relating to or rights in or in respect of any of the foregoing; | "‘financial instruments’ means financial instruments as defined in Article 2(1), point 19, of the [Regulation on Settlement Finality];" |
The amendment aligns the definition of „financial instruments“ with the respective definition of this term in the SFR in order to avoid inconsistencies.
| Text proposed by the Commission | Amendment |
|---|---|
| Entry into force | Entry into force and date of application |
| Text proposed by the Commission | Amendment |
|---|---|
| This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities. | This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from … [12 months from the date of entry into force of this Regulation]. |
A deferred application date gives Member States time to make the necessary adaptions and gives system operators time to update rules, contracts and legal opinions in an orderly way. Twelve months matches the ECB's recommended transition period and the precedent set for prior directive-to-regulation conversions in EU financial services law.
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Sources & citation
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- Data source
- Licensed CC BY 4.0.
- Retrieved
- 25 September 2026
Cite as
European Parliament (2026). “AMENDMENTS 34 - 142 - Draft report Settlement finality and repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral arrangements”. Text, 20 July 2026. docId ECON-AM-791082. EU Parl Watch Research. https://news.eu-parl.st-solutions.dev/texts/ECON-AM-791082 (retrieved 25 September 2026). Data: EP Open Data API: document record, https://data.europarl.europa.eu/api/v2/documents/ECON-AM-791082 (CC BY 4.0).
BibTeX
@misc{epw-text-econ-am-791082,
author = {{European Parliament}},
title = {{AMENDMENTS 34 - 142 - Draft report Settlement finality and repealing Directive 98/26/EC and amending Directive 2002/47/EC on financial collateral arrangements}},
year = {2026},
date = {2026-07-20},
howpublished = {\url{https://news.eu-parl.st-solutions.dev/texts/ECON-AM-791082}},
url = {https://news.eu-parl.st-solutions.dev/texts/ECON-AM-791082},
urldate = {2026-09-25},
publisher = {EU Parl Watch Research},
note = {Text. docId ECON-AM-791082. Data: EP Open Data API: document record (CC BY 4.0)}
}