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9 Amendments of Jonás FERNÁNDEZ related to 2020/0154(COD)

Jonás FERNÁNDEZ

(1) Article 2 is amended as follows: (a) in paragraph 2, the following point (i) is added: ‘(i) a foreign exchange benchmark which has been designated by the Commission in accordance with paragraph 3.;’ ‘3. The Commission can designate foreign exchange benchmarks that are administered by administrators located outside the Union where all of the following criteria are fulfilled: (a) the foreign exchange benchmark refers to a spot exchange rate of a third- country currency that is not freely convertible; (b) supervised entities use the foreign exchange benchmark on a frequent, systematic and regular basis in derivative contracts for hedging against third country currency volatility; (c) the foreign exchange benchmark is used as a settlement rate to calculate the pay-out of the derivative contract referred to in point (b) in a currency other than the currency with limited convertibility referred to in point (a). 4. The Commission shall adopt delegated acts in accordance with Article 49 to create and update as appropriate a list of foreign exchange benchmarks that fulfil the criteria laid down in paragraph 3. Competent authorities of supervised entities that use third country foreign exchange benchmarks that are designated by the Commission in accordance with paragraph 3 shall report to the Commission and to ESMA on the number of derivative contracts that use that foreign exchange benchmark for hedging against third country currency volatility at least every two years.;’deleted

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) 2016/1011
Article 23a – paragraph 1 – introductory part

(1) The Commission may designate aone or more replacement benchmark ~~for a benchmark that will cease to be published~~s, where the cessation of thate publication of that benchmark may result in significant ~~disruption in the functioning~~and adverse impacts on market integrity ofr financial ~~markets~~stability in the Union ~~and~~or in one of its member states provided that any of the following events has occurred:

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) 2016/1011
Article 23a – paragraph 1 – point a

(a) the competent authority for the administrator of that benchmark has issued a public statement, or has published information, in which it is announced that the capability of that benchmark to measure the underlying market or economic reality cannot be restored ~~through the exercise of any of the remedial powers referred to in Article 23~~;

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) 2016/1011
Article 23a – paragraph 1 – point (c a) (new)

(c a) the competent authority withdraws or suspends the authorisation or registration of the benchmark administrator, provided that, at the time of the withdrawal or suspension there is no successor administrator that will continue to provide that benchmark.

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2

Regulatio (EU) 2016/1011
Article 23a – paragraph 2 – introductory part

(2) The replacement benchmark shall, by operation of law, replace all references to the benchmark ~~that has ceased to be published in financial instruments, financial contracts and measurements of the performance of an investment fund~~in contracts subject to Article 2(1) where all of the following conditions are fulfilled:

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) 2016/1011
Article 23a – paragraph 2 – point (a)

(a) those ~~financial instruments, contracts and performance measuremen~~contracts reference the benchmark that has ceased to be published on the date the implementing act designating the replacement benchmark enters into force;

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2

Regulation (EU) 2016/1011
Article 23a – paragraph 2 – point (b a) (new)

(b a) those financial instruments, contracts or performance measurements contain fallback rates and following conditions are simultaneously met: (i) the NCAs have conducted an assessment and determined that the given contractual fallback rate does not measure the underlying market and economic reality of the ceasing benchmark or its application would have an adverse impact on financial stability; (ii) one of the parties of the financial instruments, contracts or performance measurements affected has expressly objected to the application of the contractual fallback rate. In the event that one of the parties qualifies as a consumer according to Directive2008/48/EC on credit agreements for consumers at the relevant date in which the "Commission's” replacement benchmark shall apply, this condition is fulfilled if the consumer has not expressly asked for the application of the contractual fall back provision within three months; (iii) the parties have not agreed on a different new fallback rate.

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2 a (new)

Regulation (EU) 2016/1011
Article 29 – paragraph 1 a (new)

(2 a) In Article 29, the following paragraph is inserted: "1a. A supervised entity may also use a replacement for a benchmark in the Union if the replacement is designated by the Commission in accordance with the procedure set out in Article 23a."

2020/10/29
Committee: ECON

Jonás FERNÁNDEZ

Proposal for a regulation
Article 1 – paragraph 2 b (new)

Regulation (EU) 2016/1011
Article 37 a (new)

(2 b) The following Article 37a is added: "Article 37a 1. The Commission shall be given the power to endorse a benchmark or family of benchmarks provided in a third country in accordance with the provisions of this Regulation. 2. The Commission shall sign together with the administrator a "benchmark statement" in accordance with Article 27. 3. At the request of Commission, ESMA shall submit a report on the third country benchmarks or family of benchmarks endorsed by the Commission. 4. The Commission shall endorse the benchmarks or family of benchmarks referred to in paragraph 1 of this Article by means of a delegated act in accordance with Article 49."

2020/10/29
Committee: ECON