3 Amendments of Sirpa PIETIKÄINEN related to 2016/0365(COD)
Amendment 220 #
Proposal for a regulation
Recital 4
Recital 4
(4) As a significant amount of the financial risk of the Union financial system is processed by and concentrated in CCPs on behalf of clearing members and their clients, effective regulation and robust supervision of CCPs is essential. In force since August 2012, Regulation (EU) No 648/2012 of the European Parliament and of the Council19 requires CCPs to observe high prudential, organisational and conduct of business standards. Competent authorities are tasked with the full oversight of their activities, working together within colleges which group together relevant authorities for the specific tasks allocated to them. In accordance with commitments entered into by G20 leaders since the financial crisis, Regulation (EU) No 648/2012 also requires standardised OTC derivatives to be centrally cleared by a CCP. As the obligation to centrally clear OTC derivatives comes into effect, the volume and range of business done by CCPs is likely to increase which may, in turn, provide additional challenges for the CCPs' risk management strategies. Given this context, in assessing the CCP’s recovery plans, the competent authority should take into account the prudential requirements included in Regulation (EU) No 648/2012. Any change to those requirements should be subject to an impact assessment. Moreover, if additional capital were to be required on top of current requirements, this additional capital should be able to offset against any voluntary CCP capital tranches/buffers in the financial waterfall, otherwise the incentive to use such voluntary capital will disappear. Additionally, regarding non-default losses, the burden of covering such losses should be on the institutions responsible for creating them and the basis for the calculation of any potential additional resources for such non-default losses should exclude the capital for orderly wind down of the CCP. __________________ 19 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).
Amendment 490 #
Proposal for a regulation
Article 27 – paragraph 5 – subparagraph 1
Article 27 – paragraph 5 – subparagraph 1
The resolution authority shallmay require the CCP to issue instruments of ownership to be subscribed by all non-defaulting clearing members where those non- defaulting clearing members have been subject to loss and position allocation tools in deviation from the CCP's operating rules which have resulted in the non-defaulting clearing member suffering a financial loss. The number of instruments of ownership issued to each affected non-defaulting clearing member shall be proportionate to its loss and shall take account of any outstanding contractual obligations of the clearing members toward the CCP.
Amendment 492 #
Proposal for a regulation
Article 27 – paragraph 5 – subparagraph 2 a (new)
Article 27 – paragraph 5 – subparagraph 2 a (new)
No instruments of ownership or any other form of compensation shall be required for the application of the CCP’s rulebook tools as defined in Regulation (EU) No 648/2012 and the recovery plan as defined in this Regulation.