Proposal for a regulation
Article 1 – paragraph 1 – point 2 – point b
Regulation (EU) No 909/2014
Article 7 – paragraph 2a
2a. Without prejudice to the penalty mechanism referred to in paragraph 2 of this Article and the right to bilaterally cancel the transaction, the Commission may, by means of an implementing act, decide to which of the financial instruments referred to in Article 5(1) or categories of transactions in those financial instruments the settlement discipline measures referred to in paragraphs 3 to 8 of this Article are to be applied where the Commission considers that those measures constitute a proportionate means to address the level of settlement fails in the Union and that, based on the number and volume of settlement fails, any of the following conditions is met: (a) the application of the cash penalty mechanism referred to in paragraph 2 has not resulted in a long-term, continuous reduction of settlement fails in the Union; (b) has not reached appropriate levels considering the situation in third-country capital markets that are comparable in terms of size, liquidity as well as instruments traded and types of transactions executed on such markets; (c) Union has or is likely to have a negative effect on the financial stability of the Union. The implementing act shall be adopted in accordance with the examination procedure referred to in Article 68(2).;deleted settlement efficiency in the Union the level of settlement fails in the