Changes from report parliamentary committee draft to plenary report

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

Added(ca) the following paragraph is added:

Added10. By ... [18 months from the date of entry into force of this amending Regulation] ESMA shall, in close cooperation with the ESRB and the Joint Monitoring Mechanism, assess how the provisions of Article 15, Articles 17 to 17ba and Article 49 have been applied.

AddedIn particular, that assessment shall establish:

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

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

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

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

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

Added__________________

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

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

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

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

Added(41) Article 90 is amended as follows:

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

AddedAmendments to Regulation (EU) No 575/2013

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

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

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

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

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

AddedAmendments to Regulation (EU) 2017/1131

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

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

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

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

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

Added(2) Article 17 is amended as follows:

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

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

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

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

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

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

AddedAmendments to Regulation (EU) 2010/1095

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

Added"2. The Authority shall act within the powers conferred by this Regulation and within the scope of Directives 97/9/EC, 98/26/EC, 2001/34/EC, 2002/47/EC, 2004/109/EC, 2009/65/EC, Directive 2011/61/EU of the European Parliament and of the Council ( 1 ), Regulation (EC) No 1060/2009 and Directive 2014/65/EU of the European Parliament and of the Council ( 2 ), Regulation (EU) 648/2012 of the European Parliament and of the Council (*), Regulation (EU) 2017/1129 of the European Parliament and of the Council ( 3 ), and to the extent that those acts apply to firms providing investment services or to collective investment undertakings marketing their units or shares and the competent authorities that supervise them, within the relevant parts of, Directives 2002/87/EC and 2002/65/EC, including all directives, regulations, and decisions based on those acts, and of any further legally binding Union act which confers tasks on the Authority.

Added__________________

Added* 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).”

AddedEntry into force and application

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

AddedThis Regulation shall be binding in its entirety and directly applicable in all Member States.

AddedDone at Brussels,

AddedFor the Commission

AddedThe President Ursula VON DER LEYEN

AddedLEGISLATIVE FINANCIAL STATEMENT

Added1. FRAMEWORK OF THE PROPOSAL/INITIATIVE

Added1.1. Title of the proposal/initiative

Added1.2. Policy area(s) concerned

Added1.3. The proposal/initiative relates to:

Added1.4. Objective(s)

Added1.4.1. General objective(s)

Added1.4.2. Specific objective(s)

Added1.4.3. Expected result(s) and impact

Added1.4.4. Indicators of performance

Added1.5. Grounds for the proposal/initiative

Added1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

Added1.5.2. Added value of Union involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this point 'added value of Union involvement' is the value resulting from Union intervention which is additional to the value that would have been otherwise created by Member States alone.

Added1.5.3. Lessons learned from similar experiences in the past