5 Amendments of Georgios KYRTSOS related to 2014/0020(COD)
Amendment 163 #
Proposal for a regulation
Recital 24
Recital 24
(24) There are particularMarket making activities are crucial for the financial system and have a great impact on the European economy. However, there could arise concerns in relation to market making. The resolvability of a bank may be impeded by the presence of trading and inventory within a large banking group, as individual trading positions are treated the same way in a resolution process, whether they result from client activity driven market making or from speculation. Additionally, market makers are interconnected with other large banking groups. Furthermore, market makers can be exposed to substantial counterparty risk and the concrete functioning of market making can vary in relation to different financial instruments and market models. Therefore, particular attention to those activities should be made during the assessment of the competent authority.
Amendment 336 #
Proposal for a regulation
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
2 a. The prohibition in point (b) of paragraph 1 shall not apply if the amount of those activities is below 3% of the core credit institution's own funds, calculated on a consolidated basis. The amount of those activities above 3% of the core credit institution's own funds, calculated on a consolidated basis, shall be phased out during a period of five years after this Regulation enters into force.
Amendment 503 #
Proposal for a regulation
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
1 a. There should be a clear hierarchy of supervisory measures of the competent authority in such a way that a requirement to separate certain activities will come into effect when all other possible measures have been exhausted.
Amendment 574 #
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 2
Article 11 – paragraph 1 – subparagraph 2
As part of the prudent management of its capital, liquidity and funding, a core credit institution may only use interest rate derivatives, foreign exchange derivatives and credit derivatives eligible for central counterparty clearing to hedge its overall balance sheet risk. The core credit institution shall demonstrate to the competent supervisor that the hedging activity is designed to reduce, and demonstrably reduces or significantly mitigates, specific, identifiable risks of individual or aggregated positions of the core credit institution. Market making activities shall be exempted from limitations on the prudent management of own risk.
Amendment 604 #
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 2 a (new)
Article 12 – paragraph 1 – subparagraph 2 a (new)
Market making activities shall be exempted from the provision of risk management services to customers.