Changes from report parliamentary committee draft to plenary report

Added*1 Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1)..’;

Added(2) in Article 76(2), the following subparagraph is added:

Added‘Member States shall ensure that the management body develops specific plans and quantifiable targets in accordance with the proportions set out in accordance with Article 7a of Regulation (EU) No 648/2012 to monitor and address the concentration risk arising from exposures towards central counterparties offering services of substantial systemic importance for the Union or one or more of its Member States.’;

Added(3) in Article 81, the following paragraph is added:

Added‘Competent authorities shall assess and monitor developments of institutions’ practices concerning the management of their concentration risk arising from exposures towards central counterparties, including the plans developed in accordance with Article 76(2) of this Directive, as well as the progress made in adapting the institutions’ business models to the relevant policy objectives of the Union, taking into account the requirements set out in Article 7a of Regulation (EU) No 648/2012’;

Added(4) in Article 100, the following paragraph [5] is added:

Added‘[5]. EBA, in accordance with Article 16 of Regulation (EU) No 1093/2010, in coordination with ESMA, in accordance with Article 16 of Regulation (EU) No 1095/2010, shall develop guidelines to ensure a consistent methodology for integrating the concentration risk arising from exposures towards central counterparties in the supervisory stress testing.”;

Added(5) Article 104, (1) is amended as follows:

Added(a) the introductory wording is replaced by the following:

Added‘For the purposes of Article 97, Article 98(1), point (b), Article 98(4), (5) and (9), Article 101(4) and Article 102 of this Directive and of the application of Regulation (EU) No 575/2013, competent authorities shall have at least the power to:’;

Added(b) the following point [(n)] is added:

Added‘[(n)] require institutions to reduce exposures towards a central counterparty or to realign exposures across their clearing accounts in accordance with Article 7a of Regulation (EU) No 648/2012, where the competent authority considers there is excessive concentration risk towards that central counterparty.’;

AddedAmendments to Directive (EU) 2019/2034

AddedDirective (EU) 2019/2034 is amended as follows:

Added(1) in Article 26(1), point (b) is replaced by the following:

Added“(b) effective processes to identify, manage, monitor and report the risks that investment firms are or might be exposed to, or the risks that they pose or might pose to others, including concentration risk arising from exposures towards central counterparties, taking into account the conditions set out in Article 7a of Regulation (EU) No 648/2012.”

Added(2) Article 29 (1) is amended as follows:

Added(a) the following point (e) is added:

Added‘(e) material sources and effects of concentration risk arising from exposures towards central counterparties and any material impact on own funds.’;

Added(b) the following subparagraph is added:

Added‘For the purpose of the first subparagraph, point (e), Member States shall ensure that the management body develops specific plans and quantifiable targets in accordance with the proportions set out in accordance with Article 7a of Regulation (EU) No 648/2012 to monitor and address the concentration risk arising from exposures towards central counterparties offering services of substantial systemic importance for the Union or one or more of its Member States.”;

Added(3) in Article 36(1), the following subparagraph is added:

Added‘For the purpose of the first subparagraph, point (a), competent authorities shall assess and monitor developments of investment firms’ practices concerning the management of their concentration risk arising from exposures towards central counterparties, including the plans developed in accordance with Article 29(1), point (e), of this Directive as well as the progress made in adapting the investment firms’ business models to the relevant policy objectives of the Union, taking into account the requirements set out in Article 7a of Regulation (EU) No 648/2012.’;

Added(4) Article 39(2) is amended as follows:

Added(a) the introductory wording is replaced by the following:

Added‘For the purposes of Article 29, point (e), Article 36, Article 37(3) and Article 39 of this Directive and of the application of Regulation (EU) No 575/2013, competent authorities shall have at least the power to:’;

Added(b) the following point (n) is added:

Added‘(n) require institutions to reduce exposures towards a central counterparty or to realign exposures across their clearing accounts in accordance with Article 7a of Regulation (EU) No 648/2012, where the competent authority considers there is excessive concentration risk towards that central counterparty.’;

AddedTransposition

Added1. Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by … [PO: please insert the date = 12 months after the date of entry into force of the EMIR Review Regulation] at the latest. They shall forthwith communicate to the Commission the text of those provisions.

AddedWhen Member States adopt those provisions, they shall contain a reference to this Directive or be accompanied by such a reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Added2. Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive.

AddedEntry into force

AddedThis Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

AddedAddressees

AddedThis Directive is addressed to Member States.

AddedDone at Brussels,

AddedFor the Commission

AddedThe President Ursula VON DER LEYEN