13 Amendments of Engin EROGLU related to 2022/0403(COD)
Amendment 218 #
Proposal for a regulation
Recital 12
Recital 12
(12) To ensure that clients are aware of their options and can take an informed decision as where to clear their derivative contracts, clearing members and clients that provide clearing services in both Union and recognised third-country CCPs should inform their clients about the option to clear a derivative contract in a Union CCP so that clearing in those services identified as of substantial systemic importance is reduced in Tier 2 CCPs in order to ensure the financial stability of the Union. Clearing members must respect the wishes of the clients on where to clear the clients' derivatives.
Amendment 238 #
Proposal for a regulation
Recital 38
Recital 38
(38) To mitigate potential risks for the financial stability of the Union, or of one or more of its Member States, CCPs and clearing houses should not be allowed to be clearing members of other CCPs nor should CCPs be able to accept to have other CCPs as clearing members or indirect clearing members. This exclusion should not affect interoperability arrangements, or other arrangements such as cross- margining and sponsored-memberships or sponsored access, between CCPs.
Amendment 243 #
Proposal for a regulation
Recital 50 a (new)
Recital 50 a (new)
(50a) (51) To further enhance the attractiveness of CCPs established in the Union, the opening hours of TARGET2 should be extended beyond the current constraints. This will allow clearing members established in the Union to fulfil their margin obligations in EUR, lowering the current dependency on USD for margin calls occurring beyond the closing time of TARGET2.
Amendment 461 #
Proposal for a regulation
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
Regulation (EU) No 648/2012
Article 26
Article 26
1. A CCP shall have robust governance arrangements, which include a clear organisational structure with well- defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks to which it is or might be exposed, and adequate internal control mechanisms, including sound administrative and accounting procedures. AWithout prejudice to interoperability arrangements, or other arrangements such as cross- margining and sponsored-memberships or sponsored access, between CCPs, a CCP shall not be or become a clearing member, a client, or establish indirect clearing arrangements with a clearing member with the aim to undertake clearing activities at a CCP.;
Amendment 463 #
Proposal for a regulation
Article 1 – paragraph 1 – point 29 – point a
Article 1 – paragraph 1 – point 29 – point a
Regulation (EU) No 648/2012
Article 37
Article 37
1. A CCP shall establish, where relevant per type of product cleared, the categories of admissible clearing members and the admission criteria, upon the advice of the risk committee pursuant to Article 28(3). Such criteria shall be non- discriminatory, transparent and objective so as to ensure fair and open access to the CCP and shall ensure that clearing members have sufficient financial resources and operational capacity to meet the obligations arising from participation in a CCP. Criteria that restrict access shall be permitted only to the extent that their objective is to control the risk for the CCP. TWithout prejudice to interoperability arrangements, or other arrangements such as cross- margining and sponsored- memberships or sponsored access, between CCPs, the criteria shall ensure that CCPs or clearing houses cannot be clearing members, directly or indirectly, of the CCP.;
Amendment 470 #
Proposal for a regulation
Article 1 – paragraph 1 – point 30 – point a a (new)
Article 1 – paragraph 1 – point 30 – point a a (new)
Regulation (EU) No 648/2012
Article 38 – paragraph 7
Article 38 – paragraph 7
(a a) "7. A CCP shall provide its clearing members with information on the initial margin models it uses. That information shall: (a) clearly explain the design of the initial margin models and how ithey operates; (b) clearly describe the key assumptions and limitations of the initial margin model and the circumstances under which those assumptions are no longer valid; (c) be documented. " Or. en (02012R0648-20220812)
Amendment 482 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 – point a
Article 1 – paragraph 1 – point 33 – point a
Regulation (EU) No 648/2012
Article 46 – paragraph 1
Article 46 – paragraph 1
1. A CCP shall accept highly liquid collateral with minimal credit and market risk to cover its initial and ongoing exposure to its clearing members. A CCP may accept public guarantees or public bank or uncollateralised commercial bank guarantees, provided that they are unconditionally available upon request within the liquidation period referred to in Article 41. Where bank guarantees are provided to a CCP, that CCP shall take them into account when calculating its exposure to the bank that is also a clearing member. The CCP shall apply adequate haircuts to asset values and guarantees to reflect the potential for their value to decline over the interval between their last revaluation and the time by which they can reasonably be assumed to be liquidated. It shall take into account the liquidity risk following the default of a market participant and the concentration risk on certain assets that may result in establishing the acceptable collateral and the relevant haircuts. When revising the level of the haircuts it applies to the assets it accepts as collateral, the CCP shall take into account any potential procyclicality effects of such revisions.;
Amendment 487 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 a (new)
Article 1 – paragraph 1 – point 33 a (new)
Regulation (EU) No 648/2012
Article 48 – paragraph 6
Article 48 – paragraph 6
(33 a) Paragraph 6 is amended: "6. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s client in accordance with Article 39(3), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of the client to another clearing member designated by the client, on the client’s request or unless the client objects before the transfer of assets and positions is concluded and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept these assets and positions only where it has previously entered into a contractual relationship with the client by which it has committed itself to do so. When designating a clearing member, the client shall contractually designate an alternative clearing member to be used in case their positions need to be transferred in the event of default. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of the client. " Or. en (02012R0648-20220812)
Amendment 488 #
Proposal for a regulation
Article 1 – paragraph 1 – point 33 b (new)
Article 1 – paragraph 1 – point 33 b (new)
Regulation (EU) No 648/2012
Article 48 – paragraph 6
Article 48 – paragraph 6
(33 b) A subparagraph is added to Article 48(6) "6. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s client in accordance with Article 39(3), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of the client to another clearing member designated by the client, on the client’s request and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept these assets and positions only where it has previously entered into a contractual relationship with the client by which it has committed itself to do so. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of the client. client. a. In the case of default of an existing clearing member and for the purposes of porting clients from the defaulting clearing members towards an alternative clearing member, such alternative clearing member, the client subject to porting and the CCP shall be temporary waived from the requirements of Directive (EU) 2015/849, Directive (EU) 2018/843 and Directive (EU) 2019/1153. The alternative clearing member shall we temporarily waived from the requirements of capital for clearing members towards clients under Regulation (EU) No 575/2013. " Or. en (02012R0648-20220812)
Amendment 490 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 -a (new)
Article 1 – paragraph 1 – point 34 -a (new)
Regulation (EU) No 648/2012
Article 48 – paragraph 5
Article 48 – paragraph 5
(34 a) "5. Where assets and positions are recorded in the records and accounts of a CCP as being held for the account of a defaulting clearing member’s clients in accordance with Article 39(2), the CCP shall, at least, contractually commit itself to trigger the procedures for the transfer of the assets and positions held by the defaulting clearing member for the account of its clients to another clearing member designated by all of those clients, on their request or unless all clients object before the transfer of assets and positions is concluded and without the consent of the defaulting clearing member. That other clearing member shall be obliged to accept those assets and positions only where it has previously entered into a contractual relationship with the clients by which it has committed itself to do so. When designating a clearing member, clients shall contractually designate an alternative clearing member to be used in case their positions need to be transferred in the event of default. If the transfer to that other clearing member has not taken place for any reason within a predefined transfer period specified in its operating rules, the CCP may take all steps permitted by its rules to actively manage its risks in relation to those positions, including liquidating the assets and positions held by the defaulting clearing member for the account of its clients. " Or. en (02012R0648-20220812)
Amendment 495 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point a
Article 1 – paragraph 1 – point 34 – point a
Regulation (EU) No 648/2012
Article 49 – paragraph 1 a – subparagraph 2
Article 49 – paragraph 1 a – subparagraph 2
Where a CCP considers that the change to the models referred to in paragraph 1 it intends to adopt is not significant as referred to paragraph 1gin the below list, the CCP shall request that the application be subject to a non-objection procedure under paragraph 1b. In that case, the CCP may start applying such change before the decision of the CCP’s competent authority and ESMA pursuant to paragraph 1b. A change shall be considered as non- significant where one of the following conditions is met: a) the change leads to a decrease or increase of the margin requirements greater than 10% and lower than 20%; b) The CCP intends to offer a new clearing member access model, or to offer clearing services with a non-materially different risk profile and characteristics than the current ones, c) The list of eligible collateral is extended to accept collateral with a materially different risk profile: a. new asset class; b. new category of issuer, such as corporate or sovereign, or level of credit risk.
Amendment 502 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point a
Article 49 – paragraph 1 g – point a
(a) the change leads to a decrease or increase of the total pre-funded financial resources, including margin requirements, default fund and skin-in-the-game, greater than 1520 %;
Amendment 506 #
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point b
Article 1 – paragraph 1 – point 34 – point b
Regulation (EU) No 648/2012
Article 49 – paragraph 1 g – point b
Article 49 – paragraph 1 g – point b