Changes from report parliamentary committee draft to plenary report

RemovedRegulation (EU) No 648/2012

AddedESMA shall duly notify the Commission once it considers that the provisions under this Article and Articles 22b, 23b and 23c are fully implemented.

RemovedArticle 1 – paragraph 1 – point 33 a (new), Article 48 – paragraph 3: (33 a) in Article 48, paragraph 3 is replaced by the following: / "'3. Where a CCP considers that the clearing member will not be able to meet its future obligations, it shall promptly inform ESMA and the competent authority before the default procedure is declared or triggered. ESMA shall promptly communicate that information to the relevant members of the ESCB and to the authority responsible for the supervision of the defaulting clearing member.'

AddedDelegation of tasks by ESMA to competent authorities

Removed(https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02012R0648-20220812)

Added1. Where necessary for the proper performance of a supervisory task, ESMA may by decision delegate specific supervisory tasks to the competent authority of a Member State in accordance with the guidelines issued by ESMA pursuant to Article 16 of Regulation (EU) No 1095/2010.

RemovedChange to reflect the move to ESMA as the supervisor of EU CCPs. See explanatory statement for greater details.

Added2. Prior to the delegation of a task referred to in paragraph 1, ESMA shall consult the relevant competent authority about all of the following:

RemovedRegulation (EU) No 648/2012

Added(a) the scope of the task to be delegated;

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1 – subparagraph 1: A CCP shall regularly review the models and parameters adopted to calculate its margin requirements, default fund contributions, collateral requirements and other risk control mechanisms. It shall subject the models to rigorous and frequent stress tests to assess their resilience in extreme but plausible market conditions and shall perform back tests to assess the reliability of the methodology adopted. The CCP shall obtain independent validation, shall inform ESMA of the results of the tests performed and shall obtain ESMA's validation in accordance with paragraphs 1a, to 1e before adopting any significant change to the models and parameters.

Added(b) the timetable for the performance of the task;

RemovedChange to reflect the move to ESMA as the supervisor of EU CCPs. See explanatory statement for greater details.

Added(c) the transmission of necessary information by and to ESMA.

RemovedRegulation (EU) No 648/2012

Added3. ESMA shall review the decision to delegate referred to in paragraph 1 at appropriate intervals. A delegation may be revoked at any time.

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1 – subparagraph 2: The adopted models and parameters, including any significant change thereto, shall be subject to an opinion of the college in accordance with this Article.

Added4. A delegation of tasks shall not affect the responsibility of ESMA nor limit ESMA’s ability to conduct and oversee the delegated activity.’;

RemovedRegulation (EU) No 648/2012

Added(17) Article 23a is amended as follows:

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1a – subparagraph 1: Where a CCP intends to adopt any change to the models and parameters referred to in paragraph 1, it shall submit an application for validation of such change in an electronic format via the central database referred to in Article 17(7) where it shall be immediately shared with ESMA and the college. The CCP shall enclose an independent validation of the intended change to its application.

Added(a) paragraphs 1 and 2 are replaced by the following:

RemovedRegulation (EU) No 648/2012

Added‘1. Without prejudice to Article 22a, ESMA shall fulfil a coordination role between competent authorities and across colleges to:

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1a – subparagraph 2: Where a CCP considers that the change to the models and parameters referred to in paragraph 1 it intends to adopt is not significant as referred to in paragraph 1g, the CCP shall request that the application be subject to a non-objection procedure under paragraph 1b.

Added(a) build a common supervisory culture and consistent supervisory practices;

RemovedChange to reflect the move to ESMA as the supervisor of EU CCPs. See explanatory statement for greater details.

Added(b) ensure uniform procedures and consistent approaches;

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Added(c) strengthen consistency in supervisory outcomes, in particular with regard to supervisory areas which have a cross-border dimension or a possible cross-border impact;

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1a – subparagraph 3: ESMA shall, within 2 working days after such application has been received, acknowledge receipt of the application, confirming to the CCP that it contains the required documents. Where ESMA concludes that the application does not contain the required documents, the application shall be rejected.

Added(d) strengthen coordination in emergency situations in accordance with Article 24;

RemovedChange to reflect the move to ESMA as the supervisor of EU CCPs. See explanatory statement for greater details.

Added▌

RemovedRegulation (EU) No 648/2012

Added▌

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1b – subparagraph 1: Within 10 working days of the date referred to in the third subparagraph of paragraph 1a, ESMA, after considering the input of the college, shall assess if the proposed change qualifies as a significant change pursuant to paragraph 1g. Where ESMA concludes that the change meets one of the conditions referred to in paragraph 1g, the application shall be assessed under paragraphs 1c, 1d and1e and ESMA shall inform in writing the applicant CCP thereof.

Added(b) paragraphs 2, 3 and 4 are deleted;

RemovedChange to reflect the move to ESMA as the supervisor of EU CCPs. See explanatory statement for greater details.

Added(18) the following Articles ▌ are inserted:

RemovedRegulation (EU) No 648/2012

Added▌

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1c – introductory part: 1c. Within 30 working days of the date referred to in the third subparagraph of paragraph 1a, ESMA shall conduct a risk assessment of the significant change and adopt a decision, and shall submit its report and decision to the CCP's competent authority and the college. / Within 10 working days of receipt of the report and decision by ESMA, the college shall adopt an opinion pursuant to Article 19 and transmit it to ESMA and ESMA shall adopt its decision, taking into account the opinion of the college / Where ESMA decides not to validate the change, the CCP's application for validation shall be refused.

Added‘Article 23b

RemovedRegulation (EU) No 648/2012

AddedJoint supervisory activities

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1c – point a: deleted

Added1. Each CCP authorised under Article 14 shall be subject to joint supervisory activities. Those activities shall be coordinated by ESMA and the college in the context of the annual review and evaluation process, and shall be open for the participation of each college member on a voluntary basis.

RemovedRegulation (EU) No 648/2012

Added2. Participants in the joint supervisory activities shall be tasked with duties that include, but are not limited to, all of the following:

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1c – point b: deleted

Added(a) participating to on-site inspections pursuant to Article 21(3);

RemovedRegulation (EU) No 648/2012

Added(b) participating in relevant supervisory assessments;

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1d: deleted

Added(c) contributing to the annual review and evaluation process, carried out by ESMA in accordance with Article 21(1).

RemovedRegulation (EU) No 648/2012

Added2 a. ESMA may also coordinate, with input from the college, joint supervisory activities in areas not foreseen at the time of the previous annual review, notably in assessing the CCP’s compliance with the requirements of this Regulation and assessing any material supervisory concerns that may have arisen since.

RemovedArticle 1 – paragraph 1 – point 34 – point a, Article 49 – paragraph 1e: 1e. Within 5 working days of the decisions being adopted under paragraph 1d, ESMA shall inform the CCP in writing, including a fully reasoned explanation, whether the validation has been granted or refused.

Added3. ESMA shall be in charge of establishing and coordinating the joint supervisory activities.